Extended Warranty

[Robert Zambelli]

This is something available to us on many of the items we buy.
For our hobby, for example, we purchase quite an assortment of electric tools -Dremel, Drill presses, Soldering tools, Bandsaws and the like.
Additionally, we buy electronics like digital cameras and computers/accessories, as well as TVs, sound equipment etc.

Here's my question: How many of you have purchased these extended warranties?
Have you every really needed them? Are they worth it?
Some are offered by the retailers, others by the manufacturers

Let's have a discussion.

Bob Z.

[Bob Reeves]

Just a money maker for the retail store.. Never heard of any financial adviser that thinks they are worth buying. Personally I figure if it lasts through the manufactures warranty it will last as long as I care about.

In my opinion the best deals in electronics is buying refurbished from the manufacture.

[Paul Taylor]

Bob
I never buy it. I use to work in electronic repair shop years ago. (TV and VCR repair) It is just another way to take your money.

[Chuck Feldman]

Hello Bob,   Back in the day when things like TV's where built by hand in factories using vacuum tubes and single components the extended warrentees did not exist. They might have stood behind  the products for the first year but that is about it. When solid state came along reliability went way up. Then came intergrated devices both analog and finally digital. So what about the extended warranty. No do not get one. Do not even get it for a car. The reliability of today's stuff is that good. If it is going to have a problem it will show up early in its life. I do not get a EW unless they are almost giving it away and the item is expensive.

Chuck

[Douglas Ames]

Considering most goods are manf'd. in China, what's the point? We've become a throw-away society. Many legacy USA brands have been destoyed in the name of profits. Troy-Built & Maytag are perfect examples of good products reduced to a "Brand name". Like anything, read the fine print on extended warranties. The final nail was when Sam Walton passed on..."Made in USA" and the pride & craftsmanship that went with that stamp died with him.

[phil c]

I generally get an extended service warranty for a lap top computer or an expensive camera.  Both are subject to things like spills and dropping.  On anything else it is a waste of money.  If you really want to throw away money get one of those highly advertised used car warranties!!!

[Dick Pacini]

I agree that most extended warranties are a waste of money.  That being said, I have only ever bought 3 of them; on a fax machine, a GPS and a flat screen TV.  At the time, the extra cost was minimal.  The only one I collected on was the fax machine which was replaced with a new one near the end of the extended warranty.

[Damian_Sheehy]

. . . and here's the theoretical slant. The failure of engineering products follows the Weibull distribution, more commonly known as the bathtub distribution. Here's what it looks like: 

http://reliabilityweb.com/ee-assets/my-uploads/art09/arc/SMRP_211.jpg

When you begin to use the products the probability of failure is relatively high. If it will fail due to a manufacturing defect you will typically find out about it early on. You will probably still have your receipt if you encounter this type of failure and you can generally return for exchange or refund without an extended warranty.

Once you're over that hurdle you are operating in the safe-life region. The probability of failure is typically very low. This is the region your extended warranty is designed to cover and that's why it's generally a bad investment.

Once the product has lived through its "design life" the probability of failure starts to rise again, but guess what? Your extended warranty has already expired.

The curve is not drawn very well; the probability of failure typically rises more slowly in the wear-out period. This gives a curve that looks like a bathtub; sharp drop in the front and a gradual rise in the back.


Damian

[Greg L Bahrman]

I dunno. I purchased Extended Warranty on the last vehicle I purchased and the repairs exceeded the cost of the Extended Warranty.....Example GMC Truck transmission $3000.00. Computer brake module $800.00. Replace Power folding mirror $400.00. My deductable was $20.00

[Bill Heher]

I have bought 3 in the last 25 years, 2 on vehicles, and a laptop, Never colleted a dime on the vehicle ones, the laptop / netbook is still active.

I decided I would only get them on high$ new technology that doesn't have a track record yet. I bought one for the Netbook I gave my wife.

It covered the battery, which is over $100, and the warranty was about $80, it also extends the manufacturers warranty for 2 more years. In my experience laptop / portable electronic w / removable batteries usually need  a new one in less than 2 years, and since they get carried around they take more abuse .

As far as cars and major appliances - take the money the extended warranty would cost and save it. Also pass on all the extra features on wahser / dryer / dishwasher. They don't make it work much better, and add to the complexity and cost. Simple is reliable.
There are plenty of new vehicles with 60,70, 100K mile warranties, most are powertrain after 3yr /36, so you would likely pay for the repairs on anything not drivetrain related. My bet is the odds are higher of getting in an accident over having the engine / transmission totally blow up if you do the recommended maintenance -which isn't much anymore.
Maybe take the money for an extended warranty and put it aside to cover an increase in collision deductible, and get a lower insurance premium each month.


Just to

[Robert Zambelli]

Thanks for all the good advice. I agree 100%, especially on the items that may suffer accidental damage.

We will soon be buying another LG TV and the warranty was offered.

               Bob Z.