Should I buy an extended warranty?

[studrew]

Hello all,

I just purchased a Sony tv at goodguys for $3500 and the salesman pushed for me to get a 3 year extended warranty for $100. Sony gives a 1 year manufacture warranty. I have heard from a friend that the extended warranty is just a waste of money. Should I get it? Thanks.

Studrew

 

[pyonir]

an extra 100 on a 3500 tv? i would.

 

[Garet Jax]

I think of an extended warranty this way. The cost of it is typically less than it would cost to fix the item you're buying it for should it break down. For example, on a $3,500 TV, $100 is not likely going to cover the cost of the piece(s) to fix as well as the installation time for the repair.

As a result, the company selling the extended warranty is saying that they are betting that the item will not breakdown between the end of the Manufacturer's warranty and the end of the extended warranty. If you buy one, then you are betting it will breakdown between the end of the Manufacturer's warranty and the end of the extended warranty.

The company is in business to make money. They are not offering you something that is going to save you money. They are offering you something that is going to make them money. This means more often than not, the item will not breakdown between the end of the Manufacturer's warranty and the end of the extended warranty.

To put a percentage on this, assume that the average cost of repair for your TV is $500. The company is expecting the TV to breakdown less than 20% of the time between the end of the Manufacturer's warranty and the end of the extended warranty. If not, then the company is not making money on this program.

Having said that, if you happen to get a TV that is going to breakdown between the end of the Manufacturer's warranty and the end of the extended warranty then the extended warranty will save you hundreds of dollars. The problem is that the odds are not on your side.

I never buy them and so far I have not regretted it.

 

[murphy55d]

On such a large purchase, yes. No need to be stuck with a $3,500 paperweight any sooner than need be.

 

[pyonir]

our fridge was less than 7 months old and the 'board' went out of it, whatever the hell that is. luckily it was still under the manufacturer warranty though.

Edit: whoops, my point being, anything can go bad at any time. you might get a lemon. you might not. for 3% of the cost of the TV, i would get the warranty.

 

[BreakApart]

$100 -vs- paying $500-2000 repair bill after your 1yr warranty expires? Your joking right?

 

[Rob9874]

Get it. I'm a bitter ex-employee of an electronics store (not Best Buy), and I hated selling the warranties. Mainly because this store charges more than Best Buy does for their warranties. I usually don't get it, unless it's an expensive item, like your TV. And especially if it's that cheap! My DVD player broke down recently, and I had bought the 3-year warrantly. I never believed people when I hear this, but it honestly expired 1 week before I called in. I called Sony, and they said the minimum charge on all repairs is $176. So I just bought a new one for $150. But $176 is alot more than the warranty cost (too bad it wasn't still valid), and your TV will cost tons more to repair than a DVD player. So I say get it.

 

[Thegonagle]

It's a Sony! Get the warranty.

 

[Pliablemoose]

As it's so big, & nearly impossible to take to the shop for repairs, get the warranty. $100 is nothing compared to a house call.

Which model did you get?

 

[Stark]

I'm a bitter ex-employee of an electronics store (not Best Buy), and I hated selling the warranties. Mainly because this store charges more than Best Buy does for their warranties.

Ah, a fellow ex-circuit city sales counsellor by the sound of it.

For that price, I'd say yes, get the warranty. Sony's are a pain to get fixed if they break down.

 

[StageLeft]

Statistically speaking you're wasting money on the warranty but the thing is for such a pricey item it's worth it - same reason i'd always get one on a car. Never get one on something cheap but a $2000 repair on something out of the blue is a real kick in the nuts.

 

[RossMAN]

Here's what I would do:

1) Buy the extended warranty because that's an unheard of price. Are you sure it's 3 years for $100? Don't think about it, just get the warranty. Big TV's are EXPENSIVE to repair.

2) Buy the TV and extended warranty using a Visa, MasterCard or Amex because they offer a 1 year free extended warranty after the manufacturer's and extended warranties expire. VISA details.

 

[vi edit]

$4 extended warranty on a $12 mouse. BAD.
$100 extended warranty on $3500 TV. GOOD.

 

[Miramonti]

You don't want to be high and dry on $3500 if it breaks, particularly when it only costs you $100.

 

[Pheran]

Most extended warranties aren't worth it, but if you are really getting a 3-year extended warranty on a $3500 TV for $100, I would go for it. It would have cost me way more than that to get a 3-year warranty on my widescreen Toshiba, and it cost less than your TV.

 

[BrunoPuntzJones]

Are you putting it on credit card? Several cards offer extended warranties past the manufacturer's warranty. I have one that doubles whatever warranty a product comes with.

 

[FelixDeCat]

I heard somewhere that goodguys were bad guys when it came to extended warranties. Forget where though.

 

[Wozster]

Do you have any Costco stores near you?

At Costco they don't sell warranties and everything is 100% unconditionally guaranteed!
If it breaks 2 years from now just take it back and they give you a choice of your money back or a new replacement.

I make all of my large purchases at Costco now that they're in my neighborhood.

P.S. - No I don't work for them nor am I a stock holder.

 

[MillionaireNextDoor]

Get it. I know what happens when Best Buy employees unload the trucks. Whoops.

Costco rules!