Extended Warranty???

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  #1  
Old 11-02-05, 02:17 AM
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Extended Warranty???

My son is looking at big screen TVs (Probably 50" Sony) - in the past any consumer reports I read said to not bother with extended warranties (cars and such) - does that hold true for a big ticket electronics item like this?
Comments/experiences?

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Old 11-02-05, 04:32 AM
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Extended warranties are usually administered by a third party, kind of like insurance that the manufacturer buys. If it wasn't profitable, i.e. the income exceeding the payouts, they wouldn't be in business. Personally, I never buy extended warranties. If I had bought an extended warranty every time it was offered for the last ten years I probably would have spent $10,000 (and never had what would have been a covered item fail).

How much do they want for the x-warranty and for how long a period? Sometimes the cost of an extended warranty can be pretty ridiculous. I bought something at one of the big-box electronics stores a while back, can't remember what it was, but the price was something like $20. The cashier in all seriousness asked if I wanted an extended warranty for $9.95. Puh-lease!
 
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Old 11-02-05, 05:13 PM
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Last year, CR recomended getting the X-warranty on new technology TVs such as plasma, LCD, and DLP.
It really does make sense with a plasma. Anything happens to it and the repair bill will be several thousand.
If looking at a rear projection LCD or DLP, make sure the x-warranty covers at least the first bulb replacement. Rear projection LCD/DLP sets have a special bulb in them (hence rear projection). The bulb will burn out in 2-4 years. Replacement cost is around $400.
 
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Old 11-03-05, 10:15 AM
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In any specific case, you might recover the cost of an extended warranty. Overall, the company selling them to you makes the money. The best answer is to put whatever amount of money the warranty was into a savings account to be used for repair or replacment. Over time, you will find the balance in this account will grow and you will be the one making the money.
 
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Old 11-03-05, 11:18 AM
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Warranty

I totally agree with J.M.C., great idea! I always ask the
salesperson why I would need and EXTENDED warranty
if I'm buying quality merchandise?
 
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Old 11-03-05, 05:13 PM
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We are dealing with specific cases here.
With rear projection LCD/DLP you WILL spend $400 on a bulb within 4 years. The bulbs have a life of 5000 hours.

With plasma, you risk several thousand dollars.

ren and JMC - I guess you guys don't have health insurance and just whatthe law requires for car insurance. Same principal. Put $500 a year away to pay for repairing your own car in case of an accident.
 
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Old 11-03-05, 09:19 PM
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As I said in my post, bob, it is possible to recover your costs on an extended warranty in a specific situation and you pointed out one where that was likely. As to what I have for insurance, none of your business.
 
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