Extending Warranty question

[Mayfriday0529]

I bought a new LCD monitor and it only has a 1 year warranty. I got it from Circuit City and I forgot to get the extended warranty package. I called the manufacture of the monitor (Gateway) and they told me they don't offer extended warranty after purchase. I haven't talk to Circuit City but was wondering if anyone have dealt with a similar situation.

Can I get an extended warranty after purchase?

 

[dullard]

Originally posted by: Jnetty99
Can I get an extended warranty after purchase?

~90% of extended warranty price is pure profit. That is, for every $100 they collect, they pay $10 to repair an item and $90 goes into their pockets. Why do you want to get an expected 90% loss on your money?

 

[Analog]

How long ago did you get it? Can you return it ?

 

[Mayfriday0529]

Originally posted by: dullard

Originally posted by: Jnetty99
Can I get an extended warranty after purchase?

~90% of extended warranty price is pure profit. That is, for every $100 they collect, they pay $10 to repair an item and $90 goes into their pockets. Why do you want to get an expected 90% loss on your money?

Because its a $500 21" LCD monitor, I don't want it to crap out after a year and i'm stuck with it.

Originally posted by: yellowfiero
How long ago did you get it? Can you return it ?

Got it on Sunday at Circuit City... Not sure if I return it will i get a 15% restocking fee?

 

[kranky]

I suspect Circuit City would be overjoyed to sell you an extended warranty.

 

[dullard]

Originally posted by: Jnetty99
Because its a $500 21" LCD monitor, I don't want it to crap out after a year and i'm stuck with it.

Put the extended money warranty in a high interest CD. By the time your LCD breaks out of warranty, the money you'll have will be greater than the cost to fix/replace it.

Do this with all of your items that you want an extended warranty and you'll win bigtime!

 

[Mayfriday0529]

Originally posted by: dullard

Originally posted by: Jnetty99
Because its a $500 21" LCD monitor, I don't want it to crap out after a year and i'm stuck with it.

Put the extended money warranty in a high interest CD. By the time your LCD breaks out of warranty, the money you'll have will be greater than the cost to fix/replace it.

Do this with all of your items that you want an extended warranty and you'll win bigtime!

$40 on high interest CD... come on...

 

[dullard]

Originally posted by: Jnetty99
$40 on high interest CD... come on...

They sell those warranties for a huge profit, I'm just trying to give you that huge profit. If you want to waste your money, it is your choice.

Say in 3 years it breaks. Do you want a 3 year old failing 21" LCD that was cheaply repaired? Or do you want to buy a new 21" LCD with your money+interest? Remember, in 3 years, that same LCD won't be anywhere near $500 anymore.

 

[Mayfriday0529]

Originally posted by: dullard

Originally posted by: Jnetty99
$40 on high interest CD... come on...

They sell those warranties for a huge profit, I'm just trying to give you that huge profit. If you want to waste your money, it is your choice.

Say in 3 years it breaks. Do you want a 3 year old failing 21" LCD that was cheaply repaired? Or do you want to buy a new 21" LCD with your money+interest? Remember, in 3 years, that same LCD won't be anywhere near $500 anymore.

What happens if it breaks in one year... $500 gone...
come seriously, I don't see how $40 in CD account equals profit.

 

[dullard]

Originally posted by: Jnetty99
What happens if it breaks in one year... $500 gone...
come seriously, I don't see how $40 in CD account equals profit.

99% chance of losing everything.
1% chance of gaining ~$200 (the value of your used 21" LCD at the time).

The math clearly says you are better off to risk it. Heck, you'll be mathematically better off putting that money into a lottery than to buy the extended warranty. But if you want to lose your money on the extended warranty gamble, that is your freedom. Just go to the store and purchase one. I'm sure they'll be extremely happy to take your money and to have a 99% chance that they never pay you anything.

 

[Mayfriday0529]

Originally posted by: dullard

Originally posted by: Jnetty99
What happens if it breaks in one year... $500 gone...
come seriously, I don't see how $40 in CD account equals profit.

99% chance of losing everything.
1% chance of gaining ~$200 (the value of your used 21" LCD at the time).

The math clearly says you are better off to risk it. Heck, you'll be mathematically better off putting that money into a lottery than to buy the extended warranty. But if you want to lose your money on the extended warranty gamble, that is your freedom. Just go to the store and purchase one. I'm sure they'll be extremely happy to take your money and to have a 99% chance that they never pay you anything.

seriously lets forget the monitor...
how do you come up with $200 out of $40.
Lets take $40 at 6% thats like $2.40 per year correct?

 

[dullard]

Originally posted by: Jnetty99
how do you come up with $200 out of $40.
Lets take $40 at 6% thats like $2.40 per year correct?

I never said you'd get $200 by investing. I said $200 is approximately the value of a 1 year old used LCD that you lost.

 

[Mayfriday0529]

Originally posted by: dullard

Originally posted by: Jnetty99
how do you come up with $200 out of $40.
Lets take $40 at 6% thats like $2.40 per year correct?

I never said you'd get $200 by investing. I said $200 is approximately the value of a 1 year old used LCD that you lost.

Every Electronic component is a lost after opening it. Its like a car after you drive it off the dealer lot.

 

[dullard]

Originally posted by: Jnetty99
Every Electronic component is a lost after opening it. Its like a car after you drive it off the dealer lot.

Ignoring your confusing grammar, I think I know what you just said. I agree with what you said. But I fail to see what it has to do with this discussion.

Tell me this, what happens if it fails June 6, 2008? Then you are out your monitor AND your $49.99+interest.

 

[Mayfriday0529]

Originally posted by: dullard

Originally posted by: Jnetty99
Every Electronic component is a lost after opening it. Its like a car after you drive it off the dealer lot.

Ignoring your confusing grammar, I think I know what you just said. I agree with what you said. But I fail to see what it has to do with this discussion.

Tell me this, what happens if it fails June 6, 2008? Then you are out your monitor AND your $49.99+interest.

If I don't have the extendend warranty I be dissapointed but still relieved that it lasted 2 years. If I have the warranty then I get it fixed or replaced for another one or a newer technology.

Of all my computer and electronic components I have lost more PC monitors than anything. Three infact since 1997. Two within a year and half period.

 

[imported_goku]

Originally posted by: dullard

Originally posted by: Jnetty99
$40 on high interest CD... come on...

They sell those warranties for a huge profit, I'm just trying to give you that huge profit. If you want to waste your money, it is your choice.

Say in 3 years it breaks. Do you want a 3 year old failing 21" LCD that was cheaply repaired? Or do you want to buy a new 21" LCD with your money+interest? Remember, in 3 years, that same LCD won't be anywhere near $500 anymore.

So you're saying warranties are pointless? I've got an IBM T42 and it came with a three year warranty (I dunno if I paid extra or not) but if I didn't pay extra, I assume it's included with the price anyways. So you're saying if my three years are almost up, I shouldn't extend the laptop's warranty to 5 years?

 

[dullard]

Originally posted by: goku
So you're saying warranties are pointless? I've got an IBM T42 and it came with a three year warranty (I dunno if I paid extra or not) but if I didn't pay extra, I assume it's included with the price anyways. So you're saying if my three years are almost up, I shouldn't extend the laptop's warranty to 5 years?

Not all warranties are pointless. Warranties are needed in two situations:

1) High risk purchases of expensive new technology that doesn't have a reliable track history yet. A good example was the $15,000 plasma TVs when they first came out. Many of them broke within a year or two and you'd be out a massive amount of money. The chance of them failing was much greater than this LCD and the cost of replacing them was much higher than this LCD. Thus, those two factors made warranties mathmatically a good idea.

2) The first 30 days of a purchase. Most electronics fail within 30 days or after 5 years. You either had a dud or a good part. You want the warranty initially to make certain you don't have a dud. Luckilly, almost everything electronic comes with at least a small warranty that prevents you from being stuck with a dud.

For your laptop, you have to decide what you want more: (a) a 3-5 year old laptop that keeps breaking and is repaired or (b) the extended warranty money + interest. In most cases, the extended warranty money + interest will buy you a better laptop and you'd have money left over.

 

[QED]

Oh no, not another "extended warranties are scams" threads...

I agree with Dullard to a point, but there are some things which are mathematical losses yet are still financially prudent to buy (such as life insurance, auto insurance, etc.).

 

[jtvang125]

Most places usually give you 30 days from the time of purchase to go back and add the extended warranty.

 

[Analog]

We bought a $150 extended warranty for our Maytag washer. I approximate that we got back at least $800 in free repairs over the last 3 years easily. In fact, we just called in another repair on that lemon, and they said enough is enough, we're getting the full purchace price of the washer back - enough to buy the LG washer brand new with its own 5 year warranty.

So don't tell me these aren't worth it - in my case, it was easily the best money spent!

 

[dullard]

Originally posted by: yellowfiero
So don't tell me these aren't worth it - in my case, it was easily the best money spent!

Someone wins the lottery too. For that one out of tens of millions of people, it also is money well spent. That doesn't mean the millions of people that lose money is money well spent.

 

[wetcat007]

Best Buy allows you to purchase the extended warrenty service plan or whatever up to 14 days after the purchase, not sure about circuit city but I would check.

Most warrenties from stores work like this. They have a insurrence company which is actually covering the product. About 50% of what you pay for the warrenty goes to that company and the store takes the rest as profit.

 

[Analog]

Originally posted by: dullard

Originally posted by: yellowfiero
So don't tell me these aren't worth it - in my case, it was easily the best money spent!

Someone wins the lottery too. For that one out of tens of millions of people, it also is money well spent. That doesn't mean the millions of people that lose money is money well spent.

Not necessarily. In our case, we bought the Neptune the first year it came to market. Most 1st year products have bugs, and buying an extended warranty is not flippantly used to make you feel better - its an intelligent decision. Lotto? Not in a blue moon. Use your head and you'll make good decisions. Not all extended warranties are worth it.

 

[Reckoner]

Originally posted by: Jnetty99

Originally posted by: dullard

Originally posted by: Jnetty99
Can I get an extended warranty after purchase?

~90% of extended warranty price is pure profit. That is, for every $100 they collect, they pay $10 to repair an item and $90 goes into their pockets. Why do you want to get an expected 90% loss on your money?

Because its a $500 21" LCD monitor, I don't want it to crap out after a year and i'm stuck with it.

Originally posted by: yellowfiero
How long ago did you get it? Can you return it ?

Got it on Sunday at Circuit City... Not sure if I return it will i get a 15% restocking fee?

Most credit cards add a year onto the warranty, check it out with whatever CC provider you used to pay for the monitor with.

 

[dullard]

Originally posted by: yellowfiero
Not necessarily. In our case, we bought the Neptune the first year it came to market. Most 1st year products have bugs, and buying an extended warranty is not flippantly used to make you feel better - its an intelligent decision.

Me thinks you need to read better:

Originally posted by: dullard
Not all warranties are pointless. Warranties are needed in two situations:

1) High risk purchases of expensive new technology that doesn't have a reliable track history yet.

I think a new product in its first year fits perfectly in that category.