I've noticed EWs are often discussed here. It looks like the lame
stream media is finally getting a clue.
Dont buy the extended warranty ever
I agree it's almost never a good idea to buy an extended
warranty. But there are exceptions. A few years ago I
bought a Kitchenaid double over on Ebay. It was a floor
model, never used. But still, I was worried about any
warranty issues, if KA would cover it, etc. SquareTrade had
a 3 year warranty for like $75 or so and I bought it.
Fortunately it's worked perfectly. I got a $3000 oven
for $1300, so figured the $75 was worth it.
Eh, I *didn't* buy an EW for my BMW 335i... but I think I would actually
understand if someone did, just in case something major fails like the
That said, in 99.44% of the instances, you are absolutely right. An EW
on a $1000 piece of consumer electronics that's going to be obsolete in
3 years anyway is silly.
replace "roosters" with "cox" to reply.
Well...not always. Some years ago I bought a 21" KDS CRT monitor at
Best Buy. It was close to 500 bucks. They offered a 3 year EW for
$25. Replacement, not wait for it to be repaired. No-brainer to me.
I bought it, and the monitor failed a month before the EW expired.
Carried it in and it was replaced with a brand new Samsung. I did
have to show the sales manager in the contract where it showed
For the Samsung they now wanted $125 for the same warranty.
About 4 years ago I bought a GE washer at Sears. My wife was set on
that washer, but I didn't like the failure rate and tales of woe about
going to the laundrymat while it was being fixed that I saw on the
Paid about $250 for an EW, with REPLACEMENT. The thing has gone past
the warranty with no issues, so you can say I wasted the money.
The way I look at it is I paid 22 cents a day for peace of mind about
never going to the laundrymat.
I bought a 2-year 24k bumper-to-bumper on a used Celebrity with 31k on
the clock. Got that at "cost" due when I financed due to the salesman
having unintentionally misled me that it was still under factory
warranty. $550. I got more than that back with just a few issues.
That EW retailed at $1100 - about 20% the cost of the car - and would
have been a slight loser financially, but a winner with "peace of
mind.." Note the huge markup. They ate that because I was going to
Now, just last week, I bought a 2003 Impala with 49k miles on it.
The dealer offered a 5 year 60k powertrains warranty for $1504.
It's a solid GM endorsed warranty that will be honored.
Adds 19% to the cost of the car.
I bought it. Won't bore you with what I know about that powertrains,
but I know enough that I figure the 82 cents a day I'm paying is worth
the "peace of mind" I'm buying with my main car.
For small stuff EW's seldom work. I don't even listen to the pitch
unless I'm spending about 5 bills. For big ticket items, or items you
need replaced NOW, they can work well.
The bottom line is "some" EW's work costwise. Some are stupidly
priced. It's insurance. You shouldn't expect to collect on
insurance. You have it for "peace of mind" or because it's legally
If it's not legally required, and it doesn't provide "peace of mind,"
don't buy it.
Retraction. Though the dealership has a good rep, and I'm pretty sure
the would squeeze the warrantee company hard, it's not "GM endorsed."
It's a Fidelity Carefree Car Care Warrantee.
Not a GM backed extended warrantee like the one I had put to good use
on my Celebrity 22 years ago.
Anyway, I actually read the warrantee contract after I posted the
First off, it cost $1804, not $1504.. Thing is, I remember seeing
$1504 specifically when I pushed the finance guy to just give me the
total warrantee cost when he was giving me different finance monthly
payments with different terms and different warrantee plans.
I didn't care about the financing. I already knew it was 5% simple
interest with Chase, no prepay penalty, and that it would be paid off
I wanted to know the powertrain warranty cost. He wrote it on a piece
of scrap paper he never let go of. Of course he kept that, but I
remember $1504 because I did a daily cost calc in my head.
You can figure that out. I can't prove it.
Anyway, I signed that with all the other paperwork without reading
anything. My bad.
The extra 3 bills pissed me off, and my "peace of mind" suffered.
Suffered enough that I went on the internet and looked for complaints.
There were plenty, and I read my contract thoroughly and found way too
My "peace of mind" disappeared.
I canceled the warrantee today. State law says max charge for
cancellation within 30 days is $50. So I wasted $50.
But I feel better, and once again have "peace of mind."
Good for you. Maybe I'm just lucky, but I can only recall one car in
the past 20 years that had more than $1500 in repairs. If I put aside
that warranty money, I'd have a good chunk of the car paid when I buy
the next one.
I haven't spent that amount on any one repair either. But I
know people who have. But the thing most people who buy
these warranties fail to compute, is that the warranty only
covers certain items and explicitly excludes a lot of other
things. So, you could still have an expensive repair bill and
it may not be covered. Which is why I think if you take a
self insurance approach to it, you're better off. If you keep
the $1500 you have it and you can use it for any major
On Wed, 27 Mar 2013 05:08:23 -0700 (PDT), " email@example.com"
In the lean years, we had little savings, but still did not waste
money on warranties. Fact is, I've spent little on appliance repair
over 47 years of home ownership. While I don't have a special
account for repairs, there is enough in savings to cover repair or
replacement of any home appliance and major repairs to the car. The
last two though, I traded before the warranty ran out.
As pointed out already, electronics have come down in price so it is
easier to replace in a few years, but you are paying for a service
contract that is based on price today.
Insurance companies, nice folks that they are, when done caring about
you, they still want to make a profit. Add up the cost of extended
warranties on every appliance you have and see if you still want to
buy them. Quite a sum that you save.
If you had been paying attention, you would know that the "lame stream
media" has been telling us that for years.
Most times, when you hear someone advocating for those warranties,
they are selling them.
In the case of hot water heaters, the manufacturer will encourage the
plumbing companies that sell it's heaters to offer an extended
That's because they know that it's seldom that anything goes wrong with
their heaters during that first three years, and so it's not exactly a
"gamble" to warranty the heater for that extra time.
On Mar 22, 6:52 pm, firstname.lastname@example.org wrote:
The manufacturer's warranty usually only covers the item itself. The
labor to install/replace it is not covered. Extended warranties
cover both parts and labor. One has to read it to know what it
actually covers. The labor often costs more than the item. For
instant, the thermostat on the defrost coil of a refrigerator.......
The part is $8, the house call is $75, as an example.....
Another classic trick is they will try to sell you the 3 yr
extended warranty on a product. It covers you for 3 yrs,
but that's counting from today. The product typically has
a one year warranty to begin with. So, people think they
are buying 3 years, but in reality, they are buying only 2.
I just thought of another place an extended warranty
makes sense. Dehumdifiers that get a lot of use. It seems
everyone agrees that these just don't last these days.
A friend of mine bought one a couple years ago and in
trying to negotiate the price, the sales manager wanted
to bundle in an extended warranty. I don't remember the
details, but bundled in, it was a good deal. The unit failed
during the warranty and they replaced it. He wound up
having to pay another $40, because that model was no
longer made and the ones they had were slightly larger.
That's another example of what happens when you go
to make a claim. But it was still a good deal, because the
new one would have cost 2.5 times what the extended
warranty plus the $40 cost. He just walked in with the old
one and walked out with a new one.
On Mar 23, 12:42 pm, email@example.com wrote:
Actually, the cost of a part like a defrost thermostat, a VERY likely
failure, is about the same for a $300 or a $2000 fridge. Of course,
if one doesn't know how to remove a screw, slip off the old therm,
slip in the new one, and replace the screw, the $75 is a good deal.
My point was that the "labor" and "house call" may not be covered
under the warranty. It's a good idea to check for "parts AND labor"
and "carry-in" versus "house calls", if one is considering a
For those of us that can use the internet to order parts, and have
the knowledge to do the repair, a warranty may not be worth it.
On the other hand, things like laptop computers and HDTV sets
which are fairly complex to replace the parts into, even if one knows
exactly what's wrong, may give cause for buying a warranty.
It just depends ..... on who you are... and what you want to buy...
OHH !! And pay by credit card. Often that extends the warranty
automatically by a year ..
400 cell phones and $2000 laptops are worth putting extended FACTORY
warranty on, $199 cell phones and $200 laptops are not.
Some stores will sell you a 2 or 5 year REPLACEMENT warranty which
will give you a new equivalent device in replacement if your device
fails. That can be a decent deal, depending on the device and the cost
of the coverage. Again, not worth it on a $100 device that is likely
to outlast the warranty - mabee worth while on a $500 or more device
that is prone to failure - particularly if DAMAGE is also covered.
Years ago, a friend of mine who had a temper and a bad habit of throwing
the family's cordless phone against the wall after every
four or five calls bought the extended warranty from Circuit City.
I don't recall the exact number of phones the retailer replaced but
it was more than 10 before they cut him off. ^_^
HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.