Extended warranty (EW)

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I never buy warranties/insurance except for things I couldn't afford to replace (house) or which I legally must (car).
The crooked bastards are just out to make money out of me. Most stuff I can fix anyway,
A lot of stuff is not intended for repair, there are no parts available or they are stupid prices. F***g junk.
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wrote:

I never buy the EW or insurance on things either, except as you said, very expensive items such as a house and a car that is not too old.
I did have life insurance while I was young, but let it go now that the kids are gone and everything is payed for. I have enough in the 401k /IRA that if anything hapens to me, my wife can get along.
If the EWs were paying off, they would not be offered.
I bought a house that was about 20 years old a while back. They tried to sell me a home warrenty.. I looked at it and it did not seem to really cover much of anything. I think there was a deductiable on that also, but not sure now. I know that some things were old enough to wear out, so I offered the price of the house based on that. After about 2 years the heat pump did quit. Probably out of the warenty period anyway, so I put in a newer one that has a higher efficency rating.
Consumer reports (if you believe them) said the EW is a waste of money except laptop computers and one other thing I forgot what.
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CRNG wrote:

I usually do not buy the extra warranty coverage. My usual thinking is that the manufacturer already offers a one-year (or more) warranty. So, in most cases, if the product fails in the first year, I can get it replaced under the manufacturer's warranty. After the first year, I think in terms of what the actual depreciated value of the product is at that point. Sometimes, the product is worth a lot less after a year or two -- especially items like computers. And, after subtracting what I paid for the extended warranty, it doesn't seem like there is too much value left that I would be actually insuring.
I did buy extended warranty coverage on a new washer/dryer combo and a new refrigerator that I put into a remodeled apartment that I rent out. I think it was a 3-year deal, and it included parts and labor. My thinking was that since it was in an apartment, if I had a problem or the tenants are careless and it breaks, I won't have to worry about the replacement cost, labor, etc. It's been about 3 years now, and I have had zero problems, so no need for the warranty -- oh well.
Thirteen months ago, I bought an LG Olympus Q Straight Talk cell phone at Wal-Mart for $179. I had a cheapo phone before that, so that seemed like a lot of money to me. I decided to get the 18-month extended warranty which cost me $39. The phone comes with a 1 year manufacturer's warranty for defects etc.. The extended warranty only added 6 months to the manufacturer's warranty. But the extended warranty also covers the replacement of the phone for the whole 18 months if it gets damaged due to accidental misuse -- gets wet, dropped and breaks, etc. I decided to get the coverage. Nothing happened to the phone so far, so I now have 5 months left on the $39 extended warranty coverage. Yesterday, I checked online at straighttalk.com and I can buy the same model LG phone, reconditioned with a 1-year warranty, for $19.95 with free shipping -- oh well (again).
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On 3/22/2013 8:49 AM, CRNG wrote:

<http://shopping.yahoo.com/blogs/digital-crave/don-t-buy-extended-warranty-ever-172056749.html ;_ylt=Ak3vt8O.bvj7WoqY0HXTpMKs0NUE;_ylu=X3oDMTJsM3NzZzU2BG1pdANIQ01PTCBvbiBhcnRpY2xlIHJpZ2h0IHJhaWwEcGtnA2lkLTMxMzQzMDcEcG9zAzEEc2VjA01lZGlhQkNhcm91c2VsTWl4ZWRIQ00EdmVyAzc-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z>
As many have said, appliance, TV, phone warranties etc. are a waste of money. An extended warranty on a costly item, a new car for example may be a good choice if you are the type that keeps it for a very long time. I typically keep a vehicle until it can no longer be repaired economically, typically 10 years or more, and trade or dispose of it when repairs exceed blue book. So an extended 100,000 mile, 10 year bumper to bumper warranty is worth the initial expenditure to me but only if its a manufacturer's warranty. Third party warranties on vehicles (or anything for that matter) are risky at best.
John
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wrote:

Like most generalizations it's usually true but not always. For big ticket items where the repair cost would be a killer sometimes the warranty is worth the protection. The fallacy many people make is that they think if they pay $1500 for the warranty and only need it to cover $400 in repairs they were on the losing end. That's not true, the expectation with ANY insurance (that's what these warranties really are) is that for the vast majority of purchasers the insurance will cost more then the financial benefit you get. You don't really buy them expecting to break even or come out ahead, you buy them for piece of mind... Just like you buy homeowners insurance. Just because you'll almost assuredly NEVER have your house burn down very very few people are willing to risk that cost should it happen. Is it worth it on every $100 printer you buy, almost definitely not. However, if you are buying that printer as a give for your grandmother who is living 3 states away on social security perhaps it might make sense so she doesn't fret about the printer breaking and not having the money to fix it.
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The problem is that in probably 95% of the cases, the extended warranty is way overpriced and that peace of mind comes at a very high price.
Just like you buy homeowners insurance.  Just because

An extended warranty on a $100 printer for grandma still sounds like a very bad idea to me. If it breaks, you just buy grandma a new one. The comparison to homeowner's insurance isn't a very good one either. Homeowner's covers you for huge losses that most people could not self-insure. Most of the extended warranties in question are in the range that self-insurance is possible and a better choice for most people. If you can't cover the cost of a $400 tv, you probably shouldnt be buying one.
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On Sun, 24 Mar 2013 13:56:15 -0700 (PDT), " snipped-for-privacy@optonline.net"

I don't have any specific disagreement. But what's acceptable risk to you or me may not be to the guy next door. I see no logic to the idea that if you can't buy a SECOND $400 TV you shouldn't be buying the first one for $400 +a $50 extended warranty. An extended warranty that the buyer can afford may make sense to the person you say should not even buy the TV.
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It's paying for dumb stuff, like an extended warranty on a $400 TV that leads to the person not being able to afford to replace the $400 TV themselves. You already have at least a one year warranty. By that time, everyone knows that a $400 TV will cost $300. If you just put that $50 into a jar for each appliance, you could self insure it and come out way ahead. In short, I just don't buy the fact that someone buying a $400 TV, has to insure it because a year later they can't afford to replace it if it blows up. Even folks on welfare have cable, AC, TVs and playstations. What's next? Rent to own is a good idea?
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On Sun, 24 Mar 2013 13:56:15 -0700 (PDT), " snipped-for-privacy@optonline.net"

Exactly. I bought a 32" CRT HD TV for about $1200. It was a good deal at the time, but with technology improving and flat screens getting cheaper they became very attractive. Problem is, I could not justify tossing a perfectly working TV.
A power surge from a nearby lightning strike helped. Took out the TV and I was happy to replace it with a 47" flat screen for $400 less than the old one.
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I knew a guy who would buy 3 or 4 identical models of any high value item , like 4 700 buck TVs, and get a extended warranty on only ONE purchased seperately.
he claimed to make $ on this by scaming the company who scamed him .........
i a tv broke it wasnt tied to any serial number, just the model number of the tv which he would make a claim on.
it caught up with him one time when all 5 identical sets had the same exact defect. insurance paid or 2 but refused to cover the rest.......
the fellow is now long dead.....
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Long since dead. Shows you not to scam people.
Christopher A. Young Learn more about Jesus www.lds.org .
I knew a guy who would buy 3 or 4 identical models of any high value item , like 4 700 buck TVs, and get a extended warranty on only ONE purchased seperately.
he claimed to make $ on this by scaming the company who scamed him .........
i a tv broke it wasnt tied to any serial number, just the model number of the tv which he would make a claim on.
it caught up with him one time when all 5 identical sets had the same exact defect. insurance paid or 2 but refused to cover the rest.......
the fellow is now long dead.....
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l

I could see that working if you own a motel. But not very practical for the typical person who rarely buys more than one of the same appliance at the same time.
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