Should You Consider Taking An Extended and/or Replacement Based Warranty?
An extended warranty is simply a mirror of a manufactures warranty and it sometimes includes a few added extras, such as covering wear and tear through normal use and the ability to have a warranty transferred. A warranty transfer works in the way that if you decide to later on-sell a product yourself, you can transfer the remaining warranty time to the person who purchases it. By doing this you may be able to increase your own resale value on your product. A warranty in general provides a period of coverage of up to 5 years. But there are time exceptions with this coverage mainly dependant on exactly the type of product you are purchasing. For example, computers generally are up to 3 years and home theatre products are up to 5 years etc.
Another important factor to consider in an extended warranties coverage is the 'No Lemon Guarantee'. In most coverage disclosures I have seen there needs to be a fault in the same part, which needs to occur and be fixed 4 separate times and only then will the product be replaced. This could be really a time consuming and frustrating path to any product replacement. So it is always best to check the warranty disclosure form thoroughly to find out exactly what terms are involved.
Lately there has been a real swing towards offering replacement warranties on lower value based retail products (Products that generally range in value
up-to $350). And what these warranties generally cover applies to the main unit of a product only. And it simply offers that if the product stops working then the product will be replaced once only. Again it would be highly advised that you read the warranty disclosure form very thoroughly to find out what exact terms are in place.
And on a very important note:
- Always make sure that you have surge protection connected to any electrical based products that you buy and use, as without it any surge damage that may occur, will totally invalidate a manufacturer, extended and all replacement warranty coverage.
Remember each warranty sale provides a retail store with a very nice product add-on, as most extended warranties yield easily between 40% to 80% profit. Not a bad profit margin percentage at all, so it is important that before taking out any extended warranty based cover etc, that you gain the warranty disclosure form and read it carefully to understand if and exactly what exemptions may or may not exist.
Value Tip:
- Importantly if you are using a credit card for any product payment you may already have some type of warranty coverage included on the card itself, (A lot of credit card companies are now offering warranties on credit card purchased products). Its really important to check this one, you may be already covered for your product purchases and not even realize it.
Yes all in all, there are both real positives and negatives that apply to any type of extra warranty coverage. And there is no doubt that you really need to consider all the facts exactly, so that you can simply make a really informed decision about whether this type of coverage is of any value to you at all.
Have a quick read of the articles below written independently
by 3 different authors about this subject.
Buying Extended Product Warranties
Is Not Always The Best Solution.
Extended product guarantees for LCD and Plasma TVs are usually purchased through a retailer at the time of buying the product. These type of warranties also exist for a variety of products, such as refrigerators, computers, washers, dryers, video game consoles, camcorders and cameras. Often, appliance retailers offer warranties on all their products. It’s important to know that these retailers profit greatly from the sales of these type of warranties.
Most products that have an extended guarantee option are already very expensive in themselves. Before spending money on an extended guarantee it’s important to research its advantages and disadvantages.
Warranties on smaller electronic products like telephones and small accessories are usually not financially worthy. The repairs can be made by the consumer for a lesser price. Also, because technology advances are so quick, when a repair is needed it’s usually better and cheaper to buy a new replacement product or a newer model.
Plasma TVs and laptop computers are two products that have been identified to necessitate an extended guarantee. Statistically, they break down more often than other products and their repair costs more.
When it comes to cars, extended product warranties are great for car buyers who plan to own the vehicle for a long period of time. However, if a car buyer is planning to resell within a few years, an extended product guarantee may not be valuable.
As with any other type of insurance, it’s important to evaluate the extended products warranties financial value.
George Marvin is the editor of ExtendedWarrantyReview.com - an online guide of Extended Warranties Rating and includes review information on different consumer extended warranties.
Should I Purchase An Extended
Warranty For My New TV?
Technology today is getting more and more advanced. Plasma televisions have made a splash among the general public. As with most technology, they were extremely expensive when they were first made available, but since they’ve begun to drop in price more and more people have purchased them for their home. When it comes time for you to purchase your plasma television, it’s still a large investment and it’s always important to back up a large investment in the form of an extended warranty. While an extended warranty will add an additional cost when you’re purchasing your television, the cost will pay itself off when problems arise.
There are such things as television repair men because televisions inevitably run into trouble. There are several electrical components that can go wrong and there are people that make a career out of knowing how to correct those components. There is a charge for these people to come to your home. Once the problem has been diagnosed, there is a charge for whatever parts are necessary to be replaced. These parts can get quite pricey due to the technology that creates this kind of television. Finally, there’s a labor charge for the person doing the repairing. If you have to take your television into the store to be repaired, there’s an additional risk that something can happen that will cause additional damage. If your manufacturer’s warranty has already run out, which in many cases it will have when problems like these arise, you will be the one paying for these charges which can be several hundred dollars. An extended warranty will guarantee that you will never be the one that has to take on these charges.
Most manufacturers will offer an extension of your extended warranty when that runs out. Many people will choose to let their warranties run out at this point believing that nothing has gone wrong at this point and they paid the extra expense for the warranty that they didn’t even use. Yet, the older a television gets, the more likely it is to have problems. No matter when the television ends up needing repairs the costs will be the same. If you have let your warranty run out, you will end up being the person who will pay for the repairs. Again, extending your extended warranty will ensure that no matter how long you have your television you will have made a wise investment in ensuring that your television will remain working at all times with little or no extra charge over and above what you pay for the warranties.
You can take the chance that your television will continue working with no problems for countless years. We all know this is not very likely. What’s more likely is that sooner or later your television will encounter some kind of problem that will have to be fixed. Having that warranty will mean that you don’t have to replace an expensive television with another. One investment in a plasma television should be all you need for several years to come; insuring that investment with a warranty just makes good sense.
David Tanguay is dedicated in providing research, reviews & helpful information to consumers and businesses. To research, review and purchase your next TV, please visit Flat Panel Review at http://plasmatv-compare.com
Buyer Beware The Extended
Warranty Deal Or No Deal?
Experience is always life's best teacher. But ideally it is through somebody else's experience that you could learn a valuable lesson about extended warranties.
What is the deal with extended warranties? Are they really an insurance against damage or malfunction?
A seasoned salesperson knows just when to propose the extended warranty; especially, those electronic store sales representatives. When you are high on the purchase the salesperson poses the question, “ Would you like the extended warranty added to this purchase?”. Now they Do NOT review the extended warranty Terms and Conditions (T's & C's) outlining the things that ARE NOT covered by the extended warranty. In fact, some of them purport it is a 'no hassle' insurance. BUNK!
Truth be told, the extended warranty merely extends the manufacturer's warranty and is confined to the same coverage restrictions. It is interesting that the major area where you would want coverage – damage or breakage from impact – IS NOT covered under an extended or a manufacturer's warranty. Review, up front, the details of the extended warranty contract. You will discover lots of exclusions with respect to damage.
Consumer Reports Magazine surveyed tens of thousands of its readers about their repair experience with an extended warranty. The repair cost usually was less than the extended warranty cost. Consumer Reports Magazine concluded from this 2002 research that extended warranties are NOT A GOOD INVESTMENT.
Studies have shown that electronic stores use extended warranties to bolster their profit margins on low margin electronic items. The extended warranty could add 30% to the cost of your purchase. Smooth-talking efforts to sell customers extended warranties is usually part of a sales employee's compensation and job security.
An Extended Warranty seems to be a case of 'buyer beware'. Remember electronic equipment prices drop very quickly. Newer products are introduced every 6 to 12 months forcing that once 'state-of-the-art' item you have to be flushed from manufacturer's inventory at rock bottom prices to retailers and consumers. This short product life-cycle creates a cut-throat competitive retail pricing environment among manufacturers and retail stores. Extended warranty sales improve a retail store's bottom line.
Instead of repairing your damaged product, consider replacing it via one of the on-line auctions. This bid-price for the exact used [undamaged] product you have could prove less cost than the extended warranty cost. You will have just saved yourself some money and the frustration of arguing with a customer service representative to have an extended warranty claim honored by the retail store.
Carl Chesal is a business and channel development consultant, trainer, photographer, and avid snowmobiler. He operates BizFare Enterprise Inc, providing business, marketing, and Internet marketing consulting services. Bizfare Enterprise also operates a number of secure on-line shopping sites, like CoolComfortWear.com and PewterExpressions.com
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