Comments on: Extended Warranty: How You Really Contribute To A Company’s Profit!

By: Future Shop Rant

Future Shop Rant — Thu, 30 Sep 2010 12:14:39 +0000

[...] I first have to hear a 5 minutes babbling about how great the extended warranty is a scam…I mean valuable (did you know that it takes 9 to 10 hours at $50/hour to change de rubber on your [...]

By: This and That: Dragon Profiles, the Pain in Spain and More… | Canadian Capitalist

Fri, 19 Mar 2010 03:43:00 +0000

[...] It is not exactly a secret that they are a cash cow but it’s surprising how profitable extended warranties are. [...]

By: Saturday Link Love: Spring Is in the Air Edition | Rainy-Day Saver

Saturday Link Love: Spring Is in the Air Edition | Rainy-Day Saver — Mon, 15 Mar 2010 03:51:42 +0000

[...] The Financial Blogger: Extended Warranty: How You Really Contribute to a Company’s Profit [...]

By: Debt Consolidation - The Financial Power

Debt Consolidation - The Financial Power — Mon, 08 Mar 2010 23:12:27 +0000

Extended warranties. They try to push them on you every time you buy something and yes, sales people apply the fear factor. I had a really bad experience with it. Years ago I bought a laptop from Future Shop and my laptop in a 2 year period had to be fixed 3 times. One time when they returned the laptop I had to send it back right away as the entire keyboard part was hanging out, loose. After 3 repairs and some “misunderstanding” from the store part they exchanged my laptop, but I got a much lower quality. And they tried to sell me the extended warranty again!!! Helloooo. Of course I didn’t felt for it.

On the other hand when I bought my new washer and dryer I did buy the extended warranty and 3 years later just 20 days before the warranty expire date I needed the service. It worked out well, with no problems whatsoever. It’s important to read the small print, some extended warranties are just a piece of garbage.

By: The Rat

The Rat — Wed, 03 Mar 2010 19:55:57 +0000

I tend to avoid extended warranties like the plague.

i actually go the inexpensive route on a lot of purchases, especially electronics (except for my iMac). For example, I bought a dvd player (not blue-ray) at Wal-Mart 3 years ago for 30 dollars, and it still works like a charm! Did I buy warranty? Hell no, I don’t even think it was offered! Yesterday, I bought a vtech 5.8 GHz cordless phone at Wal-Mart for $24 and it works just fine. Warranty?…you get the idea.

Regarding big ticket items however, it may be worth the consideration, at least in my view. For example, when I bought my 27″ iMac, i bought the Apple Care Protection Plan.

Nice thread!

By: Sofia

Sofia — Wed, 03 Mar 2010 15:00:44 +0000

Have you ever negotiated your extended warranty? You can ask for a lower price, be reasonable, and the seller usually accepts it!!!!

Yes fear, that’s the “factor”!! I’ve taken an extended warranty for my car and actually I am quite happy with it (had a few repairs and didn’t have to pay anything). Have you taken one when you bought your car?

By: IntelligentSpeculator

IntelligentSpeculator — Wed, 03 Mar 2010 14:25:40 +0000

Don’t even get me started here… I always laugh (in my head only) when a seller tries to convince me to go for an extended guarantee, as they have no idea how little of a chance they stand to convince me…if they knew, they would save their energy. I had some bad experiences a few years ago with a warranty I had taken with an Ipod, where it actually broke 3 times!!! Remember after 3 times I was supposed to get a new one. But then they told me that the third time, it was still the warranty from the reparation that applied, instead of the one from my purchase..crazy…

Finally, I was able to get a new one…and guess what, they tried to sell me another extended guarantee… amazing and even shocking.

By: The Financial Blogger

The Financial Blogger — Wed, 03 Mar 2010 13:52:47 +0000

I actually manage mines as a whole:

I calculate the price of extended warranty of everything I “should” insure (computer, appliance, TV). This would cost more than $1000 which is definitely enough to replace any of these goods in the next 4 years… unless 2 of them break at the same time… this is also a possibility!

By: Customers Revenge

Customers Revenge — Wed, 03 Mar 2010 13:47:50 +0000

I’m with you that the extended warranties are usually too expensive but you should do a cost/benefit on each one. 75% of time I decline them, but I did get one on a laptop, since I figured I would be rough on it, and it paid off. For my $400 bargain TV I wasn’t going to pay $200 for a warranty. If it broke, I would just buy a new bargain TV and it would surely be better than the one I had.

With my washer/dryer it was different. We got one from the liquidation area of The Brick and we decided to get the extended warranty for almost 1/3rd of the price — the price was quite low since it was a liquidation. Good thing we did because it died twice, each time after almost 3 years, and we got a new dryer each time. The last dryer is much better than the first because they don’t even make that model anymore.

Now, to get a dryer that lasts up to ten years you could pay a lot of money up front, or pay for a liquidation one maybe half the price and buy the warranty to cover the lifespan.