What's the general rule when buying extended warranties?

[Ken g6]

You know what I'd really like? Instead of an extended warranty, an extended return policy. So after a year, or two, or three, instead of sending a defective item to the manufacturer, in the mail, at my expense, I could just take it back to a brick-and-mortar store.

 

[Via]

The only thing I ever bought them for repeatedly was PS2 controllers at Best Buy. The warranty was only a few buck iirc, and you knew the things were going to break.

I traded at least 10 of those things in for new ones.

Other than that - I think I've come out ahead by never buying them.

 

[crashtestdummy]

A warranty is effectively an insurance policy. As with any other kind of (non-required) insurance, you buy it when you can't afford to replace the thing being insured. It was originally invented as a way for traders to protect their cargo in case of theft or destruction. Sure, it is a net loss in money for you, but it adds a sense of stability. For electronics, though, I might suggest that if you can't afford to replace a piece of hardware, you probably shouldn't be buying it anyway.

 

[alkemyst]

You know what I'd really like? Instead of an extended warranty, an extended return policy. So after a year, or two, or three, instead of sending a defective item to the manufacturer, in the mail, at my expense, I could just take it back to a brick-and-mortar store.

This was attempted.

With Costco, fucking losers would just return their TV/Laptop/etc every 6 months and get a free upgrade when the old model was no longer available.

The problem is the manufacturer has the least 'cost' in the game. The B&M may have ordered products from 2+ middlemen. Smaller stores may be making only 5-10% on an item pure profit when all is said and done.

I have purchased extended warranties that cover shipping both ways. Some of my warranties cover all shipping costs as well...those items tend to be pricier than their competitors.

 

[vi edit]

Really just depends on a number of factors. I bought on for my Mini Van. It has power doors and a power liftgate. These things have a history of crapping out just after the initial warranty period. I paid something like $800 to extend the original bumper to bumper with a Toyota OEM warranty out to 7 years/100,000 miles. One door motor can be over $1000 to replace. At 30,000 miles they are already sticking on occassion. It's a calculated bet.

Same with TV replacements. Electronics are getting made cheaper than ever. Capaciters, power supplies, ect. All things getting cheaped out on to hit a price point. Look at Samsung and the problems they are having with bad Caps popping and killing the set. That's a "Reputable" brand and they still self destruct after a couple years.

My old LG Plasma (again a decent name) had the power supply start flaking out (or that's what the tech said) and it was affecting the image. Had the warranty on that and got reimbursed for the $1800 the set cost.

The TV before that was an old rear projection Toshiba TV that had color guns in them. One of the guys when out and the extended warranty paid for it. That was a $600 fix that I paid $300 for.

Given all my previous history with TV's shitting out, I'm more than likely going to spend $90 on a 5 year square trade warranty for my $860 60" TV.

In 4 years who knows what could break on it. I'll get my money back and swap out for whatever is available at the time.

 

[alkemyst]

A warranty is effectively an insurance policy. As with any other kind of (non-required) insurance, you buy it when you can't afford to replace the thing being insured. It was originally invented as a way for traders to protect their cargo in case of theft or destruction. Sure, it is a net loss in money for you, but it adds a sense of stability. For electronics, though, I might suggest that if you can't afford to replace a piece of hardware, you probably shouldn't be buying it anyway.

Apple Care is really good and if you are a road warrior there will be a time whether you or someone knocks your laptop down.

Personally I am more careful so don't buy apple care nor insurance on my iPhones. My laptop has taken 3'+ drops due to the environment I work in at times...it's company covered though.

I have totally lost an iPhone 4s 64MB though when a passerby tripped into me, phone not only was smashed but set sail for fail into a puddle. I use my 'free upgrades' as insurance for my phones. In a house of 5 iPhones I usually have 1-2 always up for renewal.

 

[alkemyst]

Really just depends on a number of factors. I bought on for my Mini Van. It has power doors and a power liftgate. These things have a history of crapping out just after the initial warranty period. I paid something like $800 to extend the original bumper to bumper with a Toyota OEM warranty out to 7 years/100,000 miles. One door motor can be over $1000 to replace. At 30,000 miles they are already sticking on occassion. It's a calculated bet.

Same with TV replacements. Electronics are getting made cheaper than ever. Capaciters, power supplies, ect. All things getting cheaped out on to hit a price point. Look at Samsung and the problems they are having with bad Caps popping and killing the set. That's a "Reputable" brand and they still self destruct after a couple years.

My old LG Plasma (again a decent name) had the power supply start flaking out (or that's what the tech said) and it was affecting the image. Had the warranty on that and got reimbursed for the $1800 the set cost.

The TV before that was an old rear projection Toshiba TV that had color guns in them. One of the guys when out and the extended warranty paid for it. That was a $600 fix that I paid $300 for.

Given all my previous history with TV's shitting out, I'm more than likely going to spend $90 on a 5 year square trade warranty for my $860 60" TV.

In 4 years who knows what could break on it. I'll get my money back and swap out for whatever is available at the time.

Sadly a lot of the bad capacitor stuff is the Chinese selling counterfeit items.

Dells, HP and others were badly burned by cloned caps from a leaked 'recipe'. Unfortunately, the recipe wasn't complete.

I was doing System Admin work during that time (mid-2000's). We bought like 1000+ of the units and I spent several hours each month shortly after replacing motherboards for over a year.

 

[SpatiallyAware]

Sadly a lot of the bad capacitor stuff is the Chinese selling counterfeit items.

Dells, HP and others were badly burned by cloned caps from a leaked 'recipe'. Unfortunately, the recipe wasn't complete.

I was doing System Admin work during that time (mid-2000's). We bought like 1000+ of the units and I spent several hours each month shortly after replacing motherboards for over a year.

A company buys a couple million caps from a reputable company for $.10 per.

Some shady company emails them and offers the supposed same proprietary cap for $.03 per.


I get that they were swindled, but I definitely blame the manufacturers for a lot of that cap formula mess. If it sounds too good to be true, it usually is.

 

[BurnItDwn]

I only consider extended warranty purchase on used cars.

 

[vi edit]

I get that they were swindled, but I definitely blame the manufacturers for a lot of that cap formula mess. If it sounds too good to be true, it usually is.

And that's really the shitty part about it. We're talking *maybe* a dollar or two difference per set that could either be passed on to the consumer or just ate. But instead they go cheap and the consumer is the one looking at a couple hundred buck (labor) repair for a couple dollars in parts.

 

[alkemyst]

A company buys a couple million caps from a reputable company for $.10 per.

Some shady company emails them and offers the supposed same proprietary cap for $.03 per.


I get that they were swindled, but I definitely blame the manufacturers for a lot of that cap formula mess. If it sounds too good to be true, it usually is.

Too good to be true is like buying Google IPO.

It pays off in business.

The caps were sold as legit. It was a hard lesson learned by those companies.

 

[SpatiallyAware]

Too good to be true is like buying Google IPO.

It pays off in business.

The caps were sold as legit. It was a hard lesson learned by those companies.

It depends on the situation.


This would be like your local jeweler buying rolexes out of some guy's coat, then acting like "hey it's just business" when they turn out to be fake.


I read a lot about what actually went down with that capacitor mess, and it wasn't all roses. Foxconn in particular basically knew something was up... But they did a couple initial tests and said good to go.

I'm all about looking for ways to save money, but when some shady company shows up with 70%+ savings over buying direct from the manufacturer you really need to take a close look at what they're selling before jumping in head first.

 

[alkemyst]

It depends on the situation.


This would be like your local jeweler buying rolexes out of some guy's coat, then acting like "hey it's just business" when they turn out to be fake.


I read a lot about what actually went down with that capacitor mess, and it wasn't all roses. Foxconn in particular basically knew something was up... But they did a couple initial tests and said good to go.

I'm all about looking for ways to save money, but when some shady company shows up with 70%+ savings over buying direct from the manufacturer you really need to take a close look at what they're selling before jumping in head first.

No, it's not akin to buying a Rolex out of guys coat in Central Park for $10 and the second one is only $5.

Foxconn was the supplier of all the motherboards of my Dells at the time. Everyone of them got the crusty caps and failed. The Compaq EVO 500?s had the same issue we bought prior but those PC's would have bad capacitors and still function for the most part.

 

[SpatiallyAware]

No, it's not akin to buying a Rolex out of guys coat in Central Park for $10 and the second one is only $5.

Foxconn was the supplier of all the motherboards of my Dells at the time. Everyone of them got the crusty caps and failed. The Compaq EVO 500?s had the same issue we bought prior but those PC's would have bad capacitors and still function for the most part.

The discount was some 70%.


Foxconn was, supposedly, the biggest company burned by this and they do OEM for almost everyone.

Their buyer apparently got some random email from a yahoo/gmail account advertising these caps. They placed a small order, tested them on a bench (IE not durability), then placed a massive multi-million dollar order.

Again, if you are seeing a 70% discount through a reseller when you usually buy direct from a manufacturer then that should raise some flags.

 

[NoTine42]

The discount was some 70%.


Foxconn was, supposedly, the biggest company burned by this and they do OEM for almost everyone.

Their buyer apparently got some random email from a yahoo/gmail account advertising these caps. They placed a small order, tested them on a bench (IE not durability), then placed a massive multi-million dollar order.

Again, if you are seeing a 70% discount through a reseller when you usually buy direct from a manufacturer then that should raise some flags.

You mean I shouldn't trust someone reselling a Telsa model S for $5000?

 

[SpatiallyAware]

You mean I shouldn't trust someone reselling a Telsa model S for $5000?

But it's the exact same fahmula, I swear!

 

[ponyo]

I have never purchased extended warranty. I'm comfortable with one year manufacturer warranty and one year free credit card warranty. That's 2 years of free coverage. I've had items fail outside of warranty period. I just suck it up and buy replacement out of pocket. Paying for extended warranty would drive me crazy.

 

[JTsyo]

The SquareTrade warranties at Costco are great. I bought a Samsung S4 at Costco, and 3 weeks later the screen broke. I called them and they had a check in the mail to me the next day, to buy a replacement!
I have always had bad luck with extended warranties. But, in this case, it was great.

At 3weeks, you could have just taken it back to Costco and walked out with a new one.