Comments on: Why You Shouldn’t Buy Extended Warranties For Your Holiday Purchases http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/ General interest observations and true web-log. Sun, 21 Mar 2010 04:59:26 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: lens42 http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1605553 lens42 Sat, 28 Nov 2009 07:50:00 +0000 http://www.dvorak.org/blog/?p=63725#comment-1605553 On a related note, Apple Care is GREAT...for the people who DON'T get it. Since most people DO get Apple Care, Apple takes a different view on product reliability that other manufacturers. It might make better financial sense for them to buy a higher quality component if it will reduce the number of Apple Care claims. They already took everyone's (Apple Care) money up front so a bean counter might determine that they MAKE money by using, say, a better hard drive or fan. This financial incentive is not there for companies with a low percentage of service contract sales. So tell everyone else to use Apple Care, but don't buy it yourself. On a related note, Apple Care is GREAT…for the people who DON’T get it. Since most people DO get Apple Care, Apple takes a different view on product reliability that other manufacturers. It might make better financial sense for them to buy a higher quality component if it will reduce the number of Apple Care claims. They already took everyone’s (Apple Care) money up front so a bean counter might determine that they MAKE money by using, say, a better hard drive or fan. This financial incentive is not there for companies with a low percentage of service contract sales. So tell everyone else to use Apple Care, but don’t buy it yourself.

]]> By: lens42 http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1605552 lens42 Sat, 28 Nov 2009 07:38:19 +0000 http://www.dvorak.org/blog/?p=63725#comment-1605552 Insurance, properly used, should only be for things that you can't afford to cover yourself. Buying insurance for cell phones and TVs is simply a way to give away money. In the long run you will lose, and that is with the assumption that the company will actually pay your claim (not a valid assumption). My experience is that, *if* they are still in business, they always find a way to not pay. A policy I had for appliances refused to pay on my dishwasher because, "doors are not covered", Nuff said. Insurance, properly used, should only be for things that you can’t afford to cover yourself. Buying insurance for cell phones and TVs is simply a way to give away money. In the long run you will lose, and that is with the assumption that the company will actually pay your claim (not a valid assumption). My experience is that, *if* they are still in business, they always find a way to not pay. A policy I had for appliances refused to pay on my dishwasher because, “doors are not covered”, Nuff said.

]]> By: Glenn E. http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1605175 Glenn E. Fri, 27 Nov 2009 08:17:47 +0000 http://www.dvorak.org/blog/?p=63725#comment-1605175 Way back in the 1980s, I bought my second VCR. I remember it clearly. It was a Panasonic model. And I got an extended warranty at the store that sold it (Video Warehouse). They offered to sell it $100 cheaper, if I paid for the service coverage (which added about $200 more). About 18 months later, the thing developed a chronic tracking noise problem. So I took it back to them. And they kept it for like four months. Telling me tales like how parts were on order, and company reps were called in to look at it. I finally got it back and it reeked of cigarette smoke. And the noise problem persisted. So I opened it up and took a look at it myself. And within a half hour, I found that it was a simple limit switch problem, involving one of the moving tape guide posts. It was stopping short of its final posiition. I corrected this by bending the "switch" spring apart, just enough to extend the loading shutdown motor. Clearly, this could have been an easy repair by anyone. If they really cared to honor the warranty. But instead they blew smoke up my nose. An apparently into the player, while using it to play adult movies for four months. After that experience, NO MORE extended service plans for me. Not even by major chain stores. Most appliances will never have a serious problem, in the time that these cover. They all know this. And paying several years' coverage, will cost you what a replacement unit would. And you gamble that they will actually repair the old unit, satisfactorily. Way back in the 1980s, I bought my second VCR. I remember it clearly. It was a Panasonic model. And I got an extended warranty at the store that sold it (Video Warehouse). They offered to sell it $100 cheaper, if I paid for the service coverage (which added about $200 more). About 18 months later, the thing developed a chronic tracking noise problem. So I took it back to them. And they kept it for like four months. Telling me tales like how parts were on order, and company reps were called in to look at it. I finally got it back and it reeked of cigarette smoke. And the noise problem persisted. So I opened it up and took a look at it myself. And within a half hour, I found that it was a simple limit switch problem, involving one of the moving tape guide posts. It was stopping short of its final posiition. I corrected this by bending the “switch” spring apart, just enough to extend the loading shutdown motor. Clearly, this could have been an easy repair by anyone. If they really cared to honor the warranty. But instead they blew smoke up my nose. An apparently into the player, while using it to play adult movies for four months.

After that experience, NO MORE extended service plans for me. Not even by major chain stores. Most appliances will never have a serious problem, in the time that these cover. They all know this. And paying several years’ coverage, will cost you what a replacement unit would. And you gamble that they will actually repair the old unit, satisfactorily.

]]> By: Glenn E. http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1605171 Glenn E. Fri, 27 Nov 2009 07:46:16 +0000 http://www.dvorak.org/blog/?p=63725#comment-1605171 Even manufacturer's warranties aren't always reliable. Years ago I bought a Technics CD player. One of their early models. About a year after I did, it started skipping tracks. Still under warranty, I took it to the closest licensed repair shop, for that brand. I picked it up a week later, and it still skipped a lot. Took it back (which was a 20 mile drive!) and asked to see them actually work on it. All they were prepared to do was tweek the laser adjustment, and hand it back to me. No parts replacements. Later I read that these players had a problem with lasers going fuzzy. But replacing them, wasn't part of their plan. So I had to junk a $300 player. About a year later, at an Electronics Show, I saw a Technics booth. And I asked if they fixed the laser problems with their CD players? The reps wouldn't talk to me. I've never bought another Technics optical player since. But they did make nice LP turntables. My choice of CD players after that was a Philips CD880. Which has never giving me a problem in the two decades I've owned it. Even manufacturer’s warranties aren’t always reliable. Years ago I bought a Technics CD player. One of their early models. About a year after I did, it started skipping tracks. Still under warranty, I took it to the closest licensed repair shop, for that brand. I picked it up a week later, and it still skipped a lot. Took it back (which was a 20 mile drive!) and asked to see them actually work on it. All they were prepared to do was tweek the laser adjustment, and hand it back to me. No parts replacements. Later I read that these players had a problem with lasers going fuzzy. But replacing them, wasn’t part of their plan. So I had to junk a $300 player.

About a year later, at an Electronics Show, I saw a Technics booth. And I asked if they fixed the laser problems with their CD players? The reps wouldn’t talk to me. I’ve never bought another Technics optical player since. But they did make nice LP turntables.

My choice of CD players after that was a Philips CD880. Which has never giving me a problem in the two decades I’ve owned it.

]]> By: spinedoc http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1605041 spinedoc Thu, 26 Nov 2009 17:07:58 +0000 http://www.dvorak.org/blog/?p=63725#comment-1605041 I swear by extended warranties on high ticket items, TV's, automobiles, laptops, etc. I've had nothing but great results with them, and the times I never used them I was also thankful for them. Why? Instead of harping on the profits companies make from these warranties, which are a form of insurance, you need to have some common sense and realize how the insurance pool works. Just because your home, disability, work, auto, etc. insurances make a ton of money I don't see any articles to go out and cancel those. Just because you never filed a homeowners claim or a disability claim or a life claim, does that make those insurances obsolete? So far in my life I have had 3 laptops fail on me, Best Buy replaced them with no questions asked. I had a 61" DLP fail in its 4th year, replaced by circuit city no questions asked. I've had literally thousands of dollars of extended warranty work done on vehicles which made me very happy to have purchased the extended warranties. And yes, I have had purchases which used zero extended warranty repairs. I do not consider them a waste in the least, just another insurance I purchased which I did not need to utilize, as most of my other insurances work. As for the empty promises the sales people make, that's the consumers own fault. They should be asking "hey, where is that in the contract?", and if it's not in the contract they need to make the decision to walk away, or realize that it's not valid. As for being in the pamphlet, I would venture to guess that would be some form of a contract, ie: offer, consideration and acceptance. The pamphlet is best buy branded, I'd take that right along with the contract into small claims court. It's amazing what those $40 spent in small claims court can accomplish. I swear by extended warranties on high ticket items, TV’s, automobiles, laptops, etc. I’ve had nothing but great results with them, and the times I never used them I was also thankful for them. Why? Instead of harping on the profits companies make from these warranties, which are a form of insurance, you need to have some common sense and realize how the insurance pool works. Just because your home, disability, work, auto, etc. insurances make a ton of money I don’t see any articles to go out and cancel those. Just because you never filed a homeowners claim or a disability claim or a life claim, does that make those insurances obsolete?

So far in my life I have had 3 laptops fail on me, Best Buy replaced them with no questions asked. I had a 61″ DLP fail in its 4th year, replaced by circuit city no questions asked. I’ve had literally thousands of dollars of extended warranty work done on vehicles which made me very happy to have purchased the extended warranties.

And yes, I have had purchases which used zero extended warranty repairs. I do not consider them a waste in the least, just another insurance I purchased which I did not need to utilize, as most of my other insurances work.

As for the empty promises the sales people make, that’s the consumers own fault. They should be asking “hey, where is that in the contract?”, and if it’s not in the contract they need to make the decision to walk away, or realize that it’s not valid. As for being in the pamphlet, I would venture to guess that would be some form of a contract, ie: offer, consideration and acceptance. The pamphlet is best buy branded, I’d take that right along with the contract into small claims court. It’s amazing what those $40 spent in small claims court can accomplish.

]]> By: pedro http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1605006 pedro Thu, 26 Nov 2009 15:30:56 +0000 http://www.dvorak.org/blog/?p=63725#comment-1605006 #12 Firefox' zoom sucks, not to mention that any browser in the world today has zoom capabilities, even IE. Even so, that doesn't fix the bad font/background color matching. #12 Firefox’ zoom sucks, not to mention that any browser in the world today has zoom capabilities, even IE.

Even so, that doesn’t fix the bad font/background color matching.

]]> By: maryland157 http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1605001 maryland157 Thu, 26 Nov 2009 15:22:27 +0000 http://www.dvorak.org/blog/?p=63725#comment-1605001 I think the accidental warranty's for laptops are still worth it. I had a co-worker that had to send his in for repair a couple times with the accidental warranty. I'm also going to send my laptop in soon, the left arrow key needs to be replaced, and I'll also force them to replace the screen because there are some clear spots that can get annoying. I think the accidental warranty’s for laptops are still worth it. I had a co-worker that had to send his in for repair a couple times with the accidental warranty.

I’m also going to send my laptop in soon, the left arrow key needs to be replaced, and I’ll also force them to replace the screen because there are some clear spots that can get annoying.

]]> By: # 15 Please !! http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1604993 # 15 Please !! Thu, 26 Nov 2009 15:05:31 +0000 http://www.dvorak.org/blog/?p=63725#comment-1604993 I'm sorry that your TV arrived in bad shape and I'm glad that things got sorted to your liking, BUT don't kid yourself or try and make yourself feel better about your purchase: All "big box" retailers would have stood by you and replaced that TV with no hassle at all. Don't be stupid. I’m sorry that your TV arrived in bad shape and I’m glad that things got sorted to your liking, BUT don’t kid yourself or try and make yourself feel better about your purchase: All “big box” retailers would have stood by you and replaced that TV with no hassle at all. Don’t be stupid.

]]> By: CdnPhoto http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1604965 CdnPhoto Thu, 26 Nov 2009 13:07:56 +0000 http://www.dvorak.org/blog/?p=63725#comment-1604965 The only extended warranty I get is the one included with my credit card. They give me an extra 1 year on top of what the manufacturer provides. Just recently, I had a GPS die on me. It was about 3 months after the original warranty. I contacted the CC insurance department (actually an insurance company that provides the service), told them it was dead, emailed the receipt, details on what was covered from the manual and waited. About two weeks later, I hadn't heard from them, so I was about to call, when after checking my mail, I see a cheque from them for the full amount I paid for the GPS. Not the first that I've used it, and it won't be the last. The only extended warranty I get is the one included with my credit card. They give me an extra 1 year on top of what the manufacturer provides.

Just recently, I had a GPS die on me. It was about 3 months after the original warranty. I contacted the CC insurance department (actually an insurance company that provides the service), told them it was dead, emailed the receipt, details on what was covered from the manual and waited. About two weeks later, I hadn’t heard from them, so I was about to call, when after checking my mail, I see a cheque from them for the full amount I paid for the GPS.

Not the first that I’ve used it, and it won’t be the last.

]]> By: Uncle Patso http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1604960 Uncle Patso Thu, 26 Nov 2009 12:32:44 +0000 http://www.dvorak.org/blog/?p=63725#comment-1604960 I had an LCD monitor die on me a few months after the manufacturer's warranty expired, so the next time, we bought the extended warranties on two new LCD monitors, a desktop computer and a laser printer -- <b>from CompUSA</b>... I had an LCD monitor die on me a few months after the manufacturer’s warranty expired, so the next time, we bought the extended warranties on two new LCD monitors, a desktop computer and a laser printer — from CompUSA…

]]> By: The Watcher http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1604916 The Watcher Thu, 26 Nov 2009 09:03:42 +0000 http://www.dvorak.org/blog/?p=63725#comment-1604916 While enforcing a claim by a sales agent may be impossible without good witnesses, the pamphlet probably would guarantee compliance.... A disclaimer in the fine print likely wouldn't survive a jury trial.... That said, it's generally a bad idea to buy the warranties. Many years ago my dad decided to buy one for his car. Seemed like a good idea until I read it. (I'm not a lawyer, but....) Really funny things like tranny problems not covered at all after the car was 2 years old.... By the time the smoke cleared, about all they seemed to cover was some seals on the doors.... My daughter bought a notebook a while back with the warranty, and then managed to spill a glass of water into the keyboard. Trashed the machine. No repair, either. "Water damage" was excluded. (Not really a surprise.) She bought another one, with a warranty, that specifically included water damage. So far she hasn't need it. Bet they'd tell us to drop dead, though.... (Or pro-rate the thing down to $500....) Probably doesn't help that I told her not to.... (I also told her to avoid that second one entirely. Sure sounds good on paper, or if you read the box, but it's hard to believe that a top-end notebook of a couple years ago really shouldn't run XP! Not quite enough horsepower.... She's about to retire it - I'm going to try to get her to give it to me and put Win98SE on it.) Regards While enforcing a claim by a sales agent may be impossible without good witnesses, the pamphlet probably would guarantee compliance…. A disclaimer in the fine print likely wouldn’t survive a jury trial….

That said, it’s generally a bad idea to buy the warranties.

Many years ago my dad decided to buy one for his car. Seemed like a good idea until I read it. (I’m not a lawyer, but….) Really funny things like tranny problems not covered at all after the car was 2 years old…. By the time the smoke cleared, about all they seemed to cover was some seals on the doors….

My daughter bought a notebook a while back with the warranty, and then managed to spill a glass of water into the keyboard. Trashed the machine. No repair, either. “Water damage” was excluded. (Not really a surprise.) She bought another one, with a warranty, that specifically included water damage. So far she hasn’t need it. Bet they’d tell us to drop dead, though…. (Or pro-rate the thing down to $500….)

Probably doesn’t help that I told her not to….

(I also told her to avoid that second one entirely. Sure sounds good on paper, or if you read the box, but it’s hard to believe that a top-end notebook of a couple years ago really shouldn’t run XP! Not quite enough horsepower…. She’s about to retire it – I’m going to try to get her to give it to me and put Win98SE on it.)

Regards

]]> By: Rick Cain http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1604915 Rick Cain Thu, 26 Nov 2009 09:03:28 +0000 http://www.dvorak.org/blog/?p=63725#comment-1604915 Well don't go to Best Buy Well don’t go to Best Buy

]]> By: Zybch http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1604900 Zybch Thu, 26 Nov 2009 07:23:41 +0000 http://www.dvorak.org/blog/?p=63725#comment-1604900 <a href="http://tinyurl.com/phuckedplasma" rel="nofollow"><u>Check out this pic</u></a> of how my new TV arrived. Thankfully the online retailer (oo.com.au) bore the cost of return shipping and replacement, but I know many others including big box retail stores wouldn't be so upright about it. Check out this pic of how my new TV arrived. Thankfully the online retailer (oo.com.au) bore the cost of return shipping and replacement, but I know many others including big box retail stores wouldn’t be so upright about it.

]]> By: Glenn E. http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1604891 Glenn E. Thu, 26 Nov 2009 06:13:03 +0000 http://www.dvorak.org/blog/?p=63725#comment-1604891 Some years ago, I took my elderly pop over to the local Bestbuy to get him a new Tv set. They were still selling analog CRT sets, back then. And a 27" color set had some weight to it (still). Anyway, the salesman seemed ready to help us with the thing, until I turned down their extended warranty plan. Then he simply disappeared. And NOBODY helped me and my 75+ year old father get a cart and take the thing out to his pickup and load it. We had to do it all! Perhaps if I had been a bit more cagey and said "I'll think about the plan", or "Yeah, sure thing", I would have at least gotten them to deliver it to the cashier line. But I'm betting the help would have stopped there, if I didn't pay for the plan. On another occasion, I bought a Sony Audio Tape Deck. And again the salesman at Bestbuy offered their extended warranty plan. I asked to see some pamphlet about it. And quickly read that it didn't cover parts that wear out from normal use. Ya know, like pinch rollers. So I asked the guy, if the plan covered free replacement of worn out rubber rollers. And naturally he assured me it would. Which was an obvious lie. So I said I come back and get the plan sometime later. Which was my lie, to keep him from deserting me, should I need him. Apparently, that's the way they roll at Bestbuy. And I won't invest in any large screen Tvs, until I can once more feel confident that I can get one delivered without it having been damaged, because I didn't pay for the store's extended warranty plan. Because it wouldn't surprise me that these things happen. Some years ago, I took my elderly pop over to the local Bestbuy to get him a new Tv set. They were still selling analog CRT sets, back then. And a 27″ color set had some weight to it (still). Anyway, the salesman seemed ready to help us with the thing, until I turned down their extended warranty plan. Then he simply disappeared. And NOBODY helped me and my 75+ year old father get a cart and take the thing out to his pickup and load it. We had to do it all! Perhaps if I had been a bit more cagey and said “I’ll think about the plan”, or “Yeah, sure thing”, I would have at least gotten them to deliver it to the cashier line. But I’m betting the help would have stopped there, if I didn’t pay for the plan.

On another occasion, I bought a Sony Audio Tape Deck. And again the salesman at Bestbuy offered their extended warranty plan. I asked to see some pamphlet about it. And quickly read that it didn’t cover parts that wear out from normal use. Ya know, like pinch rollers. So I asked the guy, if the plan covered free replacement of worn out rubber rollers. And naturally he assured me it would. Which was an obvious lie. So I said I come back and get the plan sometime later. Which was my lie, to keep him from deserting me, should I need him. Apparently, that’s the way they roll at Bestbuy.

And I won’t invest in any large screen Tvs, until I can once more feel confident that I can get one delivered without it having been damaged, because I didn’t pay for the store’s extended warranty plan. Because it wouldn’t surprise me that these things happen.

]]> By: zzzzzzzzzzzzzzzzzzzzzzzzzzzzzz http://www.dvorak.org/blog/2009/11/25/why-you-shouldnt-buy-extended-warranties-with-your-holiday-purchases/comment-page-1/#comment-1604888 zzzzzzzzzzzzzzzzzzzzzzzzzzzzzz Thu, 26 Nov 2009 04:42:35 +0000 http://www.dvorak.org/blog/?p=63725#comment-1604888 Fix it your self. Today if you buy a Plasma you be susprise how easy to fix them damn thing. They are build like computers inside. Mainboard, AV processor, Driver for X axis and Driver for y asis and a few other buffer board and power supply. Ask some expert online on how to troubleshoot, all you really need is screw driver, flash light and volt meter. Boards are cheaper then extended warranty. Fix it your self.
Today if you buy a Plasma you be susprise how easy to fix them damn thing. They are build like computers inside. Mainboard, AV processor, Driver for X axis and Driver for y asis and a few other buffer board and power supply.

Ask some expert online on how to troubleshoot, all you really need is screw driver, flash light and volt meter. Boards are cheaper then extended warranty.

]]>