Extended Warranties / Service Plans: Do You Buy Them?

[The Chad]

Hello all,

I recently started a new job where I'm part of the computer diagnostic and repair group at a big box retail chain that isn't Best Buy or Circuit City, and we're supposed to try to sell these extended plans to everyone who buys something technological that could potentially fail. That is all fine and dandy (we're not commission so it's no real pressure).

I've noticed a lot of people who come in with cheap-o laptops that are just a couple months out of factory warranty and want us to look at them (not having purchased an extended warranty), and then balk at the $60 USD bench fee just to figure out what's wrong. "We bought it here, why can't you look at it?" is what I commonly hear. I politely tell them to go to hell, but I had someone the other day, when asked if he purchased the ESP, said "I never buy those things, do you?" Well, that's what I'm asking you guys. Some of you are technologically savvy, some not as much.

I wouldn't probably buy one on a desktop computer, since I'm smart enough to know how to replace practically every part on it. But on laptops, I'd probably seriously consider it, especially when there's "Accidental Damage" protection. I purchased AppleCare on my latest Macbook Pro simply because of how packed the stuff is in the case, and I don't want the hassle tearing it all apart if I had to.

So, the question for the masses. Do you purchase the extended service plans?

[Aston Martin]

Trying not to think about my thread... but my sister is a c*** for them.
She'll buy them for a fucking microwave... personally i never do and never will.

[The Chad]

Originally Posted by Aston Martin

Trying not to think about my thread... but my sister is a c*** for them.
She'll buy them for a fucking microwave... personally i never do and never will.

We have some plans that are nearly as expensive as the product you are purchasing. It would be asinine to buy one on one of those.

[mgkdk]

No, but in .dk you get 2 years warranty as standard and most stuff after that is normal wear that isn't covered anyway.

[toma_alimosh]

I would not buy extended warranty for a PC ... not even a laptop. Because if you think about it, the only reason a laptop would fail is either poor construction, in which case it will fail within the standard warranty period, or poor use practices, such as dropping it on its head. I for one take very good care of my laptop, never open it outside, always carry it in a case, never leave it on the ground and never turn it on unless it's sitting on a sturdy and stable surface.

Mind you, I would buy extended warranty on other electronics. I bought a $500 HDD camcorder last year, so I got some extra years of warranty for it because I know:
1) I will be using it outside always, in humid conditions, in too much sun, it will mostly be outside the case and I'll always be holding it with only 1 hand ... which increases the chances of dropping it. I would also always be carrying it around and most of the time when using it I would pay more attention to the camcorder than attention to where I'm going, so falling over with the camcorder in hand and landing lens-first may not be out of the question.

2) It's a very sensitive machine. Unlike my sturdy lcd screen from my laptop, the camcorder has a sensitive lens. A very small scratch on it can kill the whole machine, and if the zoom and focus fail ... it's gone. Not to mention the very fine digital sensors it has and if those were to be damaged even slightly, the whole camera would be ruined. It also has many joints and controls, such as the lcd screen which you can flip upside-down ... it's basically hanging on by a hinge.

So to answer your question: I would buy extended warranty for the things that cost a lot of money (such as $500) AND which I think would be at risk of damage or very fragile. Even if something's expensive, if I think it will be fine, then no need for extra cost.

[Vette Boss]

I've never bought one, ever. My thinking is that if you take care of equipment, don't abuse it or let it overheat, that it will last long enough to warrant an upgrade. For example, I've bought a new receiver for $1,000 and it lasts five years, the extended warranty for 4-year protection is $250 and useless. I'm out the $250 and my new receiver will have to cost less.

Common sense is the best money saver around. Treat your equipment with respect and you won't need those extended warranties.

[awdrifter]

Never bought any extended warranty for anything that I buy new. Most tech products have at least one year warranty, if it fails within a year, I would be covered. If it fails in the second year, the price would probably already dropped by 50%, I might as well buy a new one. Especially for computer parts. The only thing that I would consider getting an extended warranty for is if I buy a Xbox 360. Those things have like a 30% failure rate.

[Nabster]

Typically no, but when I got my laptop for college last year I went ahead got the 2-year accidental damage plan since it was an extra $100. Not a big deal for something that gets toted around everywhere.

[LurkerPatrol]

Used to a while ago because I didn't know any better, but these days no. Reasons? I'll give you 3

1. $
2. $$
3. $$$

If something breaks on my desktop or if I want a replacement, I'll just go buy the new part. I don't want to deal with Dell tech support or whatever.

[MadCow809]

Never ever.

Most of the time I end up replacing the stuff with a better one before the service plan runs out.

[Viper007Bond]

No, the standard warranty on stuff (a year or whatever) is plenty for me. If something is going to fail, it's going to fail early.

If it breaks late in life, oh well.

[Das_Idiot]

certain ones, yes. like my TV. the warranty was 200 bucks and will cover two bulbs for me. that's incredible value since a bulb is about 175 - 200 alone.

I also buy it on all my computers, but I won't get into that.

[Crazyjeeper]

No, never. If my 3 year old laptop dies, then its a perfect excuse to get a new one. As for desktop computers, I am my extended service plan.

[Quiky]

Depending on the item. BUT if you purchase an item with American Express, they double your warranty OR add 1-year to the end of the factory/extended up to 4years..

Tablet? Hell yeah+damage protection-- cause obviously, it's going places.
HD Camcorder? Same.

Desktop? Eh, no. It sits there and either works or doesnt.

Servers? Absolutely.

[The Chad]

Originally Posted by Quiky

Depending on the item. BUT if you purchase an item with American Express, they double your warranty OR add 1-year to the end of the factory/extended up to 4years..

Tablet? Hell yeah+damage protection-- cause obviously, it's going places.
HD Camcorder? Same.

Desktop? Eh, no. It sits there and either works or doesnt.

Servers? Absolutely.

Good point on the Amex purchase. It's a nice card to have in your wallet.

[CyberMonkey]

In Belgium, things like extended warranties were extremely uncommon until a couple of years ago. Off course companies like Dell already offered it, but I never saw it in elektronics shops. It seems that since a couple of years I see them everywhere, although I don't know if it has much success. As mgkdk already said, in Europe you are supposed to get 2 years standard warranty.

Also: company's offer extended warranty because they earn on it. Simple logic tells me that if the company earns on it, I lose
Off course, this logic doesn't work for cars or houses, because if something bad happens to that and you have no insurance, you might be ruined for life. But a stupid laptop which loses half its value in two years anyway?

And also: if you buy quality stuff, and treat it with care, you have to be very unlucky to have it broken. I never ever had to use the warranty on something I bought, but I know some people who seem to need it all the time. Not surprisingly, they treat their delicate hardware like it's some kind of heavy duty farming tool.

[-Cpt. J.-]

Originally Posted by CyberMonkey

In Belgium, things like extended warranties were extremely uncommon until a couple of years ago. Off course companies like Dell already offered it, but I never saw it in elektronics shops. It seems that since a couple of years I see them everywhere, although I don't know if it has much success. As mgkdk already said, in Europe you are supposed to get 2 years standard warranty.

Also: company's offer extended warranty because they earn on it. Simple logic tells me that if the company earns on it, I lose
Off course, this logic doesn't work for cars or houses, because if something bad happens to that and you have no insurance, you might be ruined for life. But a stupid laptop which loses half its value in two years anyway?

And also: if you buy quality stuff, and treat it with care, you have to be very unlucky to have it broken. I never ever had to use the warranty on something I bought, but I know some people who seem to need it all the time. Not surprisingly, they treat their delicate hardware like it's some kind of heavy duty farming tool.

That type of thinking is completely bananas. Can you explain why you think so...? Ofcourse they offer it because they can make a few euros more, but why do you think that you will loose?

[CyberMonkey]

It all depends on the maths off course. Humans aren't good with interpreting probabilities, as they are very counterintinuive. For example: most people feel uneasy while flying, because they remember all the horrible stories about plane crashes. However, if they drive their car, they feel at ease, although the chances to die an even more horrible death in your car are much, much higher. This is because people think only about themselves, and are not used to think in terms of probabilities and populations. Which is entirely normal, off course.

I won't try to explain it because I don't understand it completely myself, but I might give some pointers.

If I buy a laptop, I have 100% chance of satisfaction. I receive the thing and can use it.
If I buy an extended warranty, I have, like, 2.5 percent chance that it will come to good use (fictional number for the failure rate of an apparatus within the extended warranty period). The company offers you the extended warranty because it wants to offset the costs of the repairs they maybe will have to make to your apparatus. The price setting for the insurance will be a horribly complex calculation with lots of probabilities and economics, but luckily you can trust on one thing: they want to earn on it. So if they earn on something for which you have a little chance that you can use it, you lose. Simple as that. You might have bad luck and have an expensive laptop which fails you one week after the standard warranty expires. You might have bad luck twice. But the laws of probability tell me that it is better for me to save the money.

Off course, if the chance that your apparatus fails is very high and the price of the warranty is reasonable compared to the cost of the apparatus/repair, it's another picture. Also with car/house insurance: if something happens with that, however little the chance, you are fucked for life. You can't take that risk.

People who have another opinion: feel free to tell. I'm not completely sure my opinion/explanation is correct.

[Homer_Bart]

Never. But I