Warranty

[sicsun]

Planning on buying a 52 lcd Tv by the end of the month for 3200 , my question is, do i really need to get warranty with it?

[ken0042]

Do you mean "should I buy the extended warranty?" or did you find a place that will sell you the TV with no warranty?

If it's the former, then here's my advice. An extended is like insurance; buy it if you cannot afford to replace/fix the item if it breaks. I have collision insurance on my car because I cannot afford to pay the money to replace the car if I get into a fault accident.

That being said, extended warranties are a huge cash grab for the retailers. So use that to your advantage, and negotiate the heck out of the TV. If you can weasle them down to a net cost of $100 to go from 1 year to 5 years, then I would do it.

If 5 years is going to cost you $700, then I wouldn't.

Also- previous thread with some other opinions: http://forum.calgarypuck.com/showthr...ended+warranty

Also get anything the salesperson tells you about the plan in writing.

[sicsun]

AH,Thanks Ken! He wanted about 400 on a five year extend. So i probably go with your advice and save four bills.

[MoneyGuy]

Originally Posted by ken0042

Do you mean "should I buy the extended warranty?" or did you find a place that will sell you the TV with no warranty?

If it's the former, then here's my advice. An extended is like insurance; buy it if you cannot afford to replace/fix the item if it breaks. I have collision insurance on my car because I cannot afford to pay the money to replace the car if I get into a fault accident.

That being said, extended warranties are a huge cash grab for the retailers. So use that to your advantage, and negotiate the heck out of the TV. If you can weasle them down to a net cost of $100 to go from 1 year to 5 years, then I would do it.

If 5 years is going to cost you $700, then I wouldn't.

Also get anything the salesperson tells you about the plan in writing.

I'm a Certified Financial Planner who handles client questions on all kinds of money topics. This is exactely what I tell my clients. Good advice.

Extended warranties are a big money-maker for the sellers. Buy insurance on the big things that would crush you financially, like the chance you could have a car accident and kill yourself, but not the little things where you're essentially self insured.

That's the best advice. I hate extended warranties. In fact, I've told salesmen that if they even mention the EW, the deal is off and I'll elsewhere. What can I say? I feel strongly about these things.

[burn_baby_burn]

On Electronics I think it is a huge waste of money. They want 25% of the purchase price.

[Draug]

Originally Posted by burn_baby_burn

On Electronics I think it is a huge waste of money. They want 25% of the purchase price.

Especially when electronics depreciate so fast. Two years from now, the TV is worth next to nothing, so why have insurance on it?

Basically, as the others have mentioned, it's not a great idea to buy the extended warranty on relatively small options.

I only have insurance on my house, cars, and life. Nothing else gets insurance, especially consumer goods.

[MoneyGuy]

Originally Posted by Draug

I only have insurance on my house, cars, and life. Nothing else gets insurance, especially consumer goods.

Um, disability insurance. It's more important than life insurance for many people. Also never cross the border without health insurance. Those are two more that are important.

[LockedOut]

Buy with a credit card. Most will give you an extra year of warranty on purchases as long as the total warranty is not more than 5 years.

[McG]

Originally Posted by LockedOut

Buy with a credit card. Most will give you an extra year of warranty on purchases as long as the total warranty is not more than 5 years.

absolutely. check your card to be sure. but you can also get cash back or points as well...and some come with theft insurance too.

best to check it out.

[Draug]

Originally Posted by MoneyGuy

Um, disability insurance. It's more important than life insurance for many people. Also never cross the border without health insurance. Those are two more that are important.

Good point with the disability insurance. I actually have that in term of replacing my employment income for a period of time ... just the basic stuff you get from the employer provided Health Insurance. Should I get more?

[Titan]

Originally Posted by Draug

Especially when electronics depreciate so fast. Two years from now, the TV is worth next to nothing, so why have insurance on it?

Basically, as the others have mentioned, it's not a great idea to buy the extended warranty on relatively small options.
.

So what would people consider a relatively small amount? A $3500 TV seems fairly substantial. Also, by this logic the extended warranty on a new truck would then seem to be a no brainer?

[return to the red]

Originally Posted by Titan

So what would people consider a relatively small amount? A $3500 TV seems fairly substantial. Also, by this logic the extended warranty on a new truck would then seem to be a no brainer?

not really. Extended warranty maybe on a used vehicle but I never get on a brand new vehicle, especially when you have the option on extending the warranty as your existing warranty is coming to an end

[Rathji]

The only kind of "warranty", I ever buy is on the mouse I buy for my laptops. I get the 2 year free replacement plan that costs $10 at bestbuy on a $100 mouse. I have only had to buy one new mouse in 3 years due to them wearing out before the 2 year mark. That said, I use my laptop all the time and the mouse gets huge wear and tear.