Extended Service Warranty

[thejefe37]

Do you guys think these things are worth the cost? Sometimes they're in the $300 range, seems a bit high to me. The only extended warranty I've ever purchased is Apple Care. If you were going to get a new Panasonic Plasma, would you guys get it? The TV is 1050 and the service plan is 349.

Thanks

[Sussudio]

Regarding TVs...

the only extended service warranties I've purchased have been through ServiceNet which I find to be an exceptional warranty company. I think if you can get a 3 year plan for under $100 (or 5 year for a little over), then it is worth it. I've purchased TV's through Crutchfield and Tweeter and have always bought the ServiceNet warranty (3 years for 69.99 both times). I used it twice and both times the service was fast and professional.

So....that being said...if you're looking at a $200+ warranty for 3 years+, I would say forget about it. Keep in mind you do have a 1 year warranty on almost every TV, and some will have an additional year for the panel. But hey, if it offers you peace of mind to have it, and you have the money to get it, then that's completely your call

[Sylin]

Originally Posted by thejefe37

Do you guys think these things are worth the cost? Sometimes they're in the $300 range, seems a bit high to me. The only extended warranty I've ever purchased is Apple Care. If you were going to get a new Panasonic Plasma, would you guys get it? The TV is 1050 and the service plan is 349.

Thanks

I always get AppleCare, because you can find it ultra-cheap on eBay (I've never paid over $95, even for my MBP) and because I've had to use it at least once on every Mac I've owned (usually in the 2nd or 3rd year I have an HDD issue).

Another thing I buy warranties on is appliances. Our fridge cost $2000 @ BB, but the warranty was $129, and we used it. That's a helluva deal. Likewise, the warranty for our washer/dryer was $149, and we used that, too.

That said, I'm opposed to extended warranties on most items. It really depends on the item/warranty cost ratio. I've never bought an ext. warranty on a TV, and I've never needed one, despite owning 8 TV's over the last 20 years.

If you think about it, the motors on washers/dryers, the compressors on a fridge or freezer, the HDD on a computer--they're all going to die eventually because they're constantly-running mechanical parts. But TVs... if they're going to break due to some type of covered defect, my assumption is that they'll break within the warranty period.

[cojake]

I would say it depends on the cost of the warranty compared to the cost of the television. I bought coverage on my last two mitsubishi rear projection sets and had to have both of them serviced within the 4 year plan. I came out ahead both times.

[thejefe37]

Thanks for the info guys, I've never heard of servicenet, I'll look into that.

The cost of the TV and the cost of the warranty don't seem in line. If it was more expensive appliance like you guys mentioned, I'd be more inclined to get it.

[sfmarine]

Best Buy wanted $400 for a 4/yr warranty for my Macbook pro..I told them no thanks..My HP had a 4 yr warranty and didn't start crapping out until after the warranty lapsed.

[mikejet]

I bought a Best Buy warranty for my TV. It's worth it because if they can't fix it you get a gift card for the amount you paid for the TV.

[Uniquely]

Originally Posted by thejefe37

Do you guys think these things are worth the cost? Sometimes they're in the $300 range, seems a bit high to me. The only extended warranty I've ever purchased is Apple Care. If you were going to get a new Panasonic Plasma, would you guys get it? The TV is 1050 and the service plan is 349.

Thanks

It really depends upon how much shopping you do... and how much of a hardship it would be to replace any particular item. If you don't buy many big ticket items.... and it would be really difficult for you to replace a certain item... then it may be a good value for you.

However, if you buy fairly big ticket items fairly regularly..... you would quickly come to the realization that if you bought none of these warranties.... all of the money you have saved by not buying them would easily pay to replace the rare item that breaks out of warranty.

In general however.... the vast majority of these things are a very poor value for the consumer. I know this is true from the years that I spent in retail sales when I was younger. The warranties are pushed very heavily, and very large bonuses, spiffs, and percentage commissions are often offered for their sale. This is a very clear indicator that they are almost pure profit for the company selling them... which by default would make it a poor value for the average consumer.

[mikejet]

Originally Posted by robinandtami

It really depends upon how much shopping you do... and how much of a hardship it would be to replace any particular item. If you don't buy many big ticket items.... and it would be really difficult for you to replace a certain item... then it may be a good value for you.

However, if you buy fairly big ticket items fairly regularly..... you would quickly come to the realization that if you bought none of these warranties.... all of the money you have saved by not buying them would easily pay to replace the rare item that breaks out of warranty.

In general however.... the vast majority of these things are a very poor value for the consumer. I know this is true from the years that I spent in retail sales when I was younger. The warranties are pushed very heavily, and very large bonuses, spiffs, and percentage commissions are often offered for their sale. This is a very clear indicator that they are almost pure profit for the company selling them... which by default would make it a poor value for the average consumer.

It's the same as insurance. It's a gamble. People buy insurance in case anything goes wrong.The sellers are gambling that nothing will happen and they make profit. Same for a warranty. If 1000 people all buy a warranty for a TV Best Buy can afford to replace the 5% that may go bad.