[cmeisenzahl]

"If the expected utility calculations don't convince you, maybe this will:

Neither Circuit City nor Best Buy discloses how much of its bottom line comes from extended warranty sales. But analysts have estimated that at least 50 percent and in some lean years 100 percent of profits at the electronics retailers come from extended warranty sales.

Here is the full story. The paper (but not on-line) edition notes that a desktop computer has a 37% chance of needing a repair in the first three years; if you are going to buy one warranty, maybe that should be it. But you are still best advised to buy insurance only when a) the potential loss is very large, or cool.gif your wife insists."

Unwarranted - washingtonpost.com

[Dark Helmet]

I don't buy them from stores as they try to screw you. It is usually better to get one straight from the manufacturer.

[residentEvil]

The only extended warranty I ever got was on my '04 Durango. New body style, new engine design, etc. Went from the normal 3y/36k to a 7y/72k. And, it is already started paying for itself. Since 32k (i'm at 41k now), things have been breaking left and right. Drive in, drive out...parts fixed, no cost.

[screamingFit]

Originally Posted by residentEvil

The only extended warranty I ever got was on my '04 Durango. New body style, new engine design, etc. Went from the normal 3y/36k to a 7y/72k. And, it is already started paying for itself. Since 32k (i'm at 41k now), things have been breaking left and right. Drive in, drive out...parts fixed, no cost.

If you didn't have the warranty, I'd say you could sue them for selling you a lemon.

Or, is that amount of defect normal?

[screamingFit]

Originally Posted by cmeisenzahl

"If the expected utility calculations don't convince you, maybe this will:

Neither Circuit City nor Best Buy discloses how much of its bottom line comes from extended warranty sales. But analysts have estimated that at least 50 percent and in some lean years 100 percent of profits at the electronics retailers come from extended warranty sales.

Here is the full story. The paper (but not on-line) edition notes that a desktop computer has a 37% chance of needing a repair in the first three years; if you are going to buy one warranty, maybe that should be it. But you are still best advised to buy insurance only when a) the potential loss is very large, or cool.gif your wife insists."

Unwarranted - washingtonpost.com

I've noticed that manufacturer's "out of the box" warranties have been getting progressively worse in order for you to buy the manufacturer's extended warranties. Seems that Microsoft, Apple, et al found that Best Buy and Circuit City have a pretty good business model.

[bstone]

I got both AppleCare and Safeware for my new MacBook. Wanted to cover all my bases.

[rickey939]

I actually laughed as I paid for AppleCare on my iPod mini thinking I would never need it...a few iPod mini's later, I'm glad I did.

[Dark Helmet]

I get extended warrantees on expensive things like computers and projection TV's but for most consumer electronics if they don't break within 30 days they usually last longer than I even own them.

[mac128k-1984]

Except for computers and more specificially laptops I don't get extended warranties.

Places like bestbuy and circuit city it makes no sense to buy it. You already get a warranty, they try to scare you that it really won't cover a defect blah blah blah.

These extended warranties are a cash cow to these places its nearly all profit because the percentage of people who need to use them are so low, its money in the bank.

[itai195]

I only get extended warranties for laptops. Other than that, I generally don't think it's necessary. Especially on TVs. I try to buy stuff on my AmEx, which gives me a 1 yr extended warranty automatically.

[Dark Helmet]

Best buy and the sort are also full of **** with their claims. The salesman will blurt out repeatedly if you have a problem they will "just replace it with a brand new unit".

What they don't tell you is that you have to bring it in for repair which can take 4-6 weeks and after going through that THREE times THEN they will replace it for a new one.

I always bust the sales guys on that one and suggest they are lying to me by telling me half the story and they shut up about it right away.

[ort888]

I've been asked if I wanted to purchase warranties on video games and controllers. Ridiculous.

A Best Buy clerk was so forceful and rude in trying to get me to purchase a warranty on an iPod, that I had to make a huge stink and call a manager over. This kid would not take no for an answer. I finally told the kid, that he was to either shut up and ring me out, or call his manager to come over. He called the manager who then apologized.

[SVass]

Many credit cards (like mine from a credit union) double the warranty period on all purchases made with the card at no cost. So I charge my purchases. The other day I went to Target about a one month old vacuum cleaner that failed and Target was able to reprint the original sales receipt because I had charged the purcase. Then they gave me a new appliance at no charge. sam

[sknapp351]

My father-in-law is on his fourth laptop in seven years from Best Buy, and he hasn't paid for one since the first. When they break, and he gets PCs therefor they do break, he takes them in to be repaired. If they cant get it back in a week he goes in and makes a big scene. He is a teacher, so all his presentations and plans are on his laptop. They always give him credit for his purchase price, then he throws in the difference for a better model.
SAm