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Old 08-15-2010, 04:11 PM   #16
clintbradford
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For less than thirty bucks, SquareTrade will perform a sixty dollar battery replacement job on my Kobo - if the battery fails in three years. Spending thirty and getting sixty is quite cost effective.
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Old 08-15-2010, 04:54 PM   #17
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Also remember that some credit cards (American Express) extend manufacturer warranties. Doesn't cover accidental damage but it does cover defects and faulty equipment.

The screen on my K2 went wonky after about 17 months. I filed a claim online and faxed them a copy of my receipt and the Amazon warranty page. A month later they credited my American Express account for $359, even though the price of a new Kindle by then was $189.

Not a bad deal.
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Old 08-16-2010, 11:42 PM   #18
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Warranties are a rip-off. Almost every consumer and financial advice columnist or site will tell you not to buy them.

Quote:
Originally Posted by clintbradford
For less than thirty bucks, SquareTrade will perform a sixty dollar battery replacement job on my Kobo - if the battery fails in three years. Spending thirty and getting sixty is quite cost effective.
You're spending $30 to MAYBE get $60. That's a terrible deal, and the exact kind of warranty you should avoid. Insuring against disasters is exactly the right attitude you should have. Everything else should be a pass.

Paying 25% of the price of an item to have "just in case" coverage is really not very wise. It's a very bad gamble.

Consumer Reports can explain it better than me.

http://www.consumerreports.org/cro/m...anty-11-06.htm

You're better off saving the money.

Last edited by GreenMonkey; 08-16-2010 at 11:47 PM.
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Old 08-17-2010, 12:24 AM   #19
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>> ... You're spending $30 to MAYBE get $60. ...

No - it is a certainty. Unless Kobo has designed a super-Li-Ion pack that defies all knows laws of physics and electrical theory, I expect my pack to last about 500 discharge-charge cycles. And I expect that to occur within a three year period. And SquareTrade has told me that the unit will either be repaired or replaced in case of NORMAL WEAR AND TEAR BATTERY FAILURE - NO DEDUCTIBLE.

In addition, I am also covered for accidental drops and water/moisture damage.

I know all about the extended warranty biz. Many are, indeed, rip-offs. But there's no "gamble" involved on this one for me.
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Old 08-17-2010, 03:34 AM   #20
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Quote:
Originally Posted by clintbradford View Post
>> ... You're spending $30 to MAYBE get $60. ...

No - it is a certainty. Unless Kobo has designed a super-Li-Ion pack that defies all knows laws of physics and electrical theory, I expect my pack to last about 500 discharge-charge cycles. And I expect that to occur within a three year period. And SquareTrade has told me that the unit will either be repaired or replaced in case of NORMAL WEAR AND TEAR BATTERY FAILURE - NO DEDUCTIBLE.
But that assumes you'll be using it for three years. I've never used any reading device for three years. There's always something better coming along which tempts me to upgrade.
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Old 08-17-2010, 04:44 AM   #21
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Originally Posted by HarryT View Post
But that assumes you'll be using it for three years. I've never used any reading device for three years. There's always something better coming along which tempts me to upgrade.
That's why I'll never buy an extended warranty. If something breaks after the normal warranty ends, I'll probably would want to buy a new device anyway. And the breaking will give me an excuse to do so!
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Old 08-17-2010, 06:44 AM   #22
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Cool It always amazes me...

How there are folks who feel they must turn a discussion into an attack.
Everyone has their own preferences and it's OK to have them.

Quote:
Originally Posted by GreenMonkey View Post
Warranties are a rip-off.
...You're spending $30 to MAYBE get $60.
...Paying 25% of the price of an item to have "just in case" coverage is really not very wise.
The math stated above is flawed.

It is a $150 device and the offer is for a 3 year period, at anytime during which they'll arrange to fix the device, or merely send the entire amount so you can replace it (which is what that service has done for me).
The correct number would be 20% of the total - but if you divide it per year instead it is more like 6-7% per year, your choice.
BUT - if the unit goes flooey after even 2 years and it is not a battery problem, you'd get ALL $150 back - a pretty darn good deal, wouldn't you agree ?

And as I have said of myself, not just everyone is in any shape to run out and buy a NEW thingy just anytime the urge strikes them:

Quote:
Originally Posted by HarryT View Post
But that assumes you'll be using it for three years. I've never used any reading device for three years. There's always something better coming along which tempts me to upgrade.
Quote:
Originally Posted by Sweetpea View Post
That's why I'll never buy an extended warranty. If something breaks after the normal warranty ends, I'll probably would want to buy a new device anyway. And the breaking will give me an excuse to do so!
And given that for no obvious reason whatsoever my JB simply quit on me DAYS after it's MFG. warranty ended - and for which I had paid $20 against the possibility of the $170 device going bad, and it will pay off in FULL (when it does) - that really means that if you add the $170 I paid to the current JB price of $130 that the measly $20 I spent could be more like a way to get $300 value because otherwise I would have needed to spend that much in total.

So impose your own POV and use your own discernment in these matters, and by all means swat at me verbally ALL you want, but I repeat:
For small - handheld - electronic devices of recent vintage these extended warranties are a GREAT IDEA......in MY opinion.

Yes - it is just MY opinion and it's fine by me if you want to disagree.
At the same time I respectfully suggest that discussion boards are best used to support one another in whatever it is that brings us here, so posting cutting remarks, or flaming anyone is very much against what this sort of place is here for to begin with.

Peace out.

mark
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Old 08-17-2010, 06:54 AM   #23
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How there are folks who feel they must turn a discussion into an attack.
Nobody's attacking you, Mark. Just putting forward different points of view. Different people have different opinions about things.
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Old 08-17-2010, 07:02 AM   #24
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Cool Deja vu ?

I just said that, really:
Quote:
Originally Posted by HarryT View Post
Nobody's attacking you, Mark. Just putting forward different points of view. Different people have different opinions about things.
BUT in the first quoted text in my message it is also pretty clear how the poster was aiming to criticize the prior poster as well as the subject matter itself in a very negative (and somewhat misleading) manner.

That sort of reply is simply NOT helpful at all.
It is also not a respectful expression of personal opinion.
(I say poe-tay-toe...you say poe-tot-toe...no big deal...)

Best Wishes.

mark
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Old 08-17-2010, 09:12 AM   #25
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Quote:
Originally Posted by clintbradford View Post
No - it is a certainty. Unless Kobo has designed a super-Li-Ion pack that defies all knows laws of physics and electrical theory, I expect my pack to last about 500 discharge-charge cycles. And I expect that to occur within a three year period.
It's far from a certainty. Three years times 365 days is 1095 days. So in order for you to use up your battery's 500 charge-discharge cycles over those three years, you would have to do a full charge and discharge every 2.19 days on average. That's not very likely.

Extended warranties are very profitable for the companies selling them, which makes them a poor investment for the consumers purchasing them. Most people will come out ahead by taking the risk and self-insuring.
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Old 08-17-2010, 09:17 AM   #26
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Mathematically speaking, it only makes sense to pay X% of the purchase price of the item in the form of an extended warranty if you believe that there is a greater than X% probability of you needing to make a claim on the warranty.
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Old 08-17-2010, 10:13 AM   #27
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Thumbs up Such an emotionally charged subject, wow !

A very wise and thoughtful suggestion HarryT:
Quote:
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Mathematically speaking, it only makes sense to pay X% of the purchase price of the item in the form of an extended warranty if you believe that there is a greater than X% probability of you needing to make a claim on the warranty.
I will only add that IMO one cannot easily guess at the probability of failure in a type of device which has so little history behind it yet.
(Especially when most of them are not made by the sellers - but instead made in Asia in the cheapest possible manner and then branded for sale elsewhere.)

It occurs to me to mention a demographical idea here too...
This comes to mind because I do a little work for a man I've known for many years and whose income is definitely and correctly described as having a number well >1 at the 6th place to the left of the decimal point.

This man's $$$ expenditure on a single work shirt, if I had it - would be enough to buy my groceries for months !
He will not even LOOK at a car priced under $60,000; regularly enjoys group dinners at a spot charging a flat $120/person where one of the guys 'picks up the tab'; thinks nothing of enjoying a $1000+ bottle of wine - and so on.
I think it is wonderful for folks to enjoy such lovely and expansive lifestyles.

I can only admire such folks though, with the sure knowledge that my own life will never include 99% of the things mentioned above and that is completely OK with me !!!

My reason to mention such silliness is that for someone bringing in above 5 figures a year buying and re-buying gadgets costing mere hundreds is only annoying because of the precious time wasted on purchasing and so forth; the actual $$$ is much less of an object.

For me - right now this minute - there is not enough $ in my wallet to buy either groceries or my next tank of gasoline....SO: I regard this subject WAY differently than would a person who has arrived in middle age with savings, a retirement fund of some sort, and an income I can only imagine if I tried.

Yes - I have chosen most of my path in life and knew it would be a low-$ one, and this is not any problem for me; it is only mentioned here at all to point at the contrasts possible within and around the subject I introduced when I posted this thread -> and all the heated-sounding replies which have shown how poorly some folks regard this very subject.

It also helps that I have personally chosen rather well in getting extended warranties on items which later justified my choices and have paid off well.

Best Wishes.

mark
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Old 08-17-2010, 10:25 AM   #28
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I'm a believer in insurance. The customer is buying peace of mind.

The insurance customer with the proper attitude doesn't want to collect, because he doesn't want the bad thing he is insuring against to happen. But he knows that it will happen to somebody, so for the small insurance premium he knows that he needn't worry if his number comes up.

That peace of mind is worth something to me.
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Old 08-17-2010, 10:34 AM   #29
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I've thought it over for my upcoming K3. If I bought one I'd get the Square Trade - with the coupon codes floating around it would be around $20 I believe. I'd mostly be buying it for Accidental Damage because Amazon + American Express already provide 2 years of Manufacturer failure.

But if I were a betting woman I'd also guess that by the end of 2011 the price on the K3 Wifi will likely be $99 and the WiFi + 3G will be maybe $150. Those wouldn't be huge dents in our budget if I had to replace a Kindle. Given that I already have the excellent Amazon Customer Service plus the American Express Extended Warranty, I think I'm just going to try and be extra careful and take my chances.

I did insure the XBox 360 my son just bought to take to college though. He's clumsy and careless with his stuff, must be that young male thing.
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Old 08-17-2010, 10:59 AM   #30
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Quote:
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BUT - if the unit goes flooey after even 2 years and it is not a battery problem, you'd get ALL $150 back - a pretty darn good deal, wouldn't you agree ?
No.
I can put $5 on a 200/1 horse. If it wins I get $1000, a pretty good deal, wouldn't you agree?
Earlier in the thread it was posited that it would be a good idea to buy a $20 3 year extended warranty for a $100 item.
For that to pay off, it has to be more that 20% likely that the device will break in those three years. But worse that than, you probably already have a free 1 year warranty, so it has to be more than 20% likely to break in years 2 or 3.
Extended warranties are extremely profitable for those selling them. That is for the same reason that bookies make money, they set the odds in their favour.
As said before, insurance is for those risks which could potentially wipe you out financially or have other serious consequences.
- House,
- Car (third-party liability),
- Health (depending on where you live),
- Llife (if you have dependants)
- Travel (in certain circumstances, eg legal and health cover if going to the US).
Anything else, it will cost you less in the long run to self-insure.

Insurance is for extremely low-likelihood, high-impact events. The more likely something is to happen, the less worth it is to buy insurance, rather than just budgeting for it in the first place.

Last edited by murraypaul; 08-17-2010 at 11:01 AM.
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