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rhadin · 08-01-2009, 10:07 AM

Like Spirit Wolf, I evaluate extended warranties on a case-by-case basis, paying particular attention to who is the warrantor and what the warranty covers.

Consumer Reports' general rule is that no extended warranty is a good buy and especially not if the warranty costs more than 20% of the purchase price.

The only extended warranty I have bought for a small electronic appliance is the one for my Sony 505. I bought it from Sony and it includes accidental damage. It will cover a broken screen, which is the most likely to break part, and the most expensive. I've now had my 505 for 1.5 years without a problem, so the extended warranty bought me peace of mind. And I've come to rely on my Sony 505 for my reading, so the warranty has really helped with the peace of mind.

The only extended waranty that I always buy is for my Subaru automobile. The warranty is from Subuaru, not a thrid party, and covers virtually everything (except routine maintenance). But I learned with my first Subaru that not having the extended warranty can be expensive (needed to replace a part that cost 50% more than what the warranty would have cost me at the time). But Subaru prorates the warranty, so if I trade in my car for another, I can cancel the current warranty and get a refund for the unused portion. I lose some money but not a great deal under this scheme. OTOH, it didn't cost me a dime (other than what I paid for the warranty) when the air conditioning unit had to be replaced. Subaru also lets me transfer the warranty to a new individual owner if I sell the car privately, which enhances the value of the car in the used car market.

I have also bought extended warranties from Sears for major appliances I have purchased form them, particularly for the clothes dryer. Every year Sears comes and does routine maintenance on the applicances at no charge.

I declined, however, to buy a Circuit City extended warranty for stereo equipment or a Staples warranty for a TomTom GPS. These I declined for several reasons, including that the warranties from third parties and didn't include inhome service.

My point is that I think one needs to evaluate the amount of risk one is willing to accept and who the warrantor is when making these decisions. Sometimes the smart decision is to buy the extended warranty.

08-01-2009, 10:07 AM	#12
rhadin Literacy = Understanding Posts: 4,833 Karma: 59674358 Join Date: Dec 2007 Location: The World of Books Device: Nook, Nook Tablet	Like Spirit Wolf, I evaluate extended warranties on a case-by-case basis, paying particular attention to who is the warrantor and what the warranty covers. Consumer Reports' general rule is that no extended warranty is a good buy and especially not if the warranty costs more than 20% of the purchase price. The only extended warranty I have bought for a small electronic appliance is the one for my Sony 505. I bought it from Sony and it includes accidental damage. It will cover a broken screen, which is the most likely to break part, and the most expensive. I've now had my 505 for 1.5 years without a problem, so the extended warranty bought me peace of mind. And I've come to rely on my Sony 505 for my reading, so the warranty has really helped with the peace of mind. The only extended waranty that I always buy is for my Subaru automobile. The warranty is from Subuaru, not a thrid party, and covers virtually everything (except routine maintenance). But I learned with my first Subaru that not having the extended warranty can be expensive (needed to replace a part that cost 50% more than what the warranty would have cost me at the time). But Subaru prorates the warranty, so if I trade in my car for another, I can cancel the current warranty and get a refund for the unused portion. I lose some money but not a great deal under this scheme. OTOH, it didn't cost me a dime (other than what I paid for the warranty) when the air conditioning unit had to be replaced. Subaru also lets me transfer the warranty to a new individual owner if I sell the car privately, which enhances the value of the car in the used car market. I have also bought extended warranties from Sears for major appliances I have purchased form them, particularly for the clothes dryer. Every year Sears comes and does routine maintenance on the applicances at no charge. I declined, however, to buy a Circuit City extended warranty for stereo equipment or a Staples warranty for a TomTom GPS. These I declined for several reasons, including that the warranties from third parties and didn't include inhome service. My point is that I think one needs to evaluate the amount of risk one is willing to accept and who the warrantor is when making these decisions. Sometimes the smart decision is to buy the extended warranty.