When Good Guys was still in business they had 10 year warranties on their high end amps. If they couldn't repair it they replaced it. I got a new Sony amp when the first one broke down, I got a high end Denon when that one broke down. I basically have been able to upgrade my amp for the last 15 years for no cost.
I've had situations where the salesman threw in goodies worth more than the cost of the extended warranty.
Also, for things like washing machines, extended warranties are better value than paying for ad-hoc repairs (possibly because of price fixing on parts)
Once in 1989 for a used Toshiba T3100/20. The computer cost $2000 and the warranty cost $500 and was pointless but I was nervous.
BTW- it had a 20MB HD with AutoCAD, DbaseIV, Frameworks, Lotus 123, PCTools and other utilities and still room to spare. Do we really need 1TB?
BTW... The SquareTrade equivalent of Apple Care for iPhone's is cheaper for 2 years and cover drops and spills! Battery too.
I only buy extended warranties from SquareTrade.com along with accidental damage protection if it is a portable device or my replacement LCD TV from when my daughter killed the old one with the Wiimote.
Yes, they can be a benefit but only if the price is right. After all its insurance and you have to expect it to be a expense that is included with the price of the product. Obviously its a money maker for the company selling it. I for one would rather have the choice to repair or throw away. Many people do not even take advatage of the extended warranty even if it would apply.
25 years ago I decided never to purchase an extended warranty. When I consider all the money I have saved, I could easily replace almost anything I own. (Admittedly, I never set aside money for a "self-funded" warranty.
Only (but always) on laptop computers.
I have purchased them 5-year extensions in Japan from places like Yodobashi, Bic Camera, etc., butt frankly, I wonder about the merit of doing so. Technology changes so rapidly I often buy to 'sell', meaning, if technology changes enough within a year or so, I will usually sell and upgrade. So, in this vein, I am reconsidering the value to pay the extra charge for an extended 5-year warranty and just be content with the standard 1-year warranty if something goes wrong with a product.
One for the iPhone (AppleCare) - heard rumors that while it's a great phone, it can easily be killed.
One for my laptop (HP from BB) - I write proposals in the client's facilities and my job depends on the laptop being functional. Should it die, I want several paths to getting it (or replacement) ASAP.
I normally get them on items that are expensive. I've bought 2 extended warranties from Best Buy and they have served me well. I got a brand new Altec Lansing speaker system after my old one broke and I got a brand new PS3 upgrade after my old one that I had for a year crapped out on me. I used to have the 40 gig with a sixaxis controller and was upgraded to an 80 gig with a rumble controller.
We've gotten them on tv's from best buy, and I also got one on my 30gb Zune I bought at bb a couple years ago. A little over a year after I got it, my Zune quit working. I got a brand new 120gb Zune (same price I originally spent on the 30gb) no questions asked. I think that was worth the $40 replacement plan.
Sure, but only on high value items. Often the sales person has a small haggling margin on the product price but a very high haggling margin on the extended warranty/insurance so with a little work you can pretty much get them for free or at least a very low cost
I have gotten it once, I got an extended warranty for my Sony Vaio from the sony store. Have been very happy with it, as it covers anything and everything.
bought one at best buy when i got my xbox 360.
mostly because i was scared of red ring and they said theyd do a straight swap at the store if anything happened.
Applecare. I was an apple retail employee and the cost for replacement parts on a 2 year old mac can be ridiculous. The only user replaceable parts are RAM and had drive. A new Logic board for a discontinued mac can be over $1500 a new superdrive is more than any applecare.
only on devices i expect to see a much higher duty cycle than would normally be indicated. for example, if i'm purchasing a TV to be used as a monitor for a computer that is almost always on, it will likely see more on hours in 1 year than the average user would put on it in 2-3. as such, this increases the odds dramatically that my bet will pay off. i would not buy it on something like a computer component that will quickly become obsolete or a bedroom television that is likely to get less than average use in a day, or if the store was known for poor customer service such as a certain store with the initials BB.
When you work at best buy you get the warranty plans at "cost" which is around $5. Pretty tough to beat that.
AppleCare. The number of times that I've come in with a pretty minor annoyance, and had it fixed, no questions, with a 2 year old computer... and usually within a business day or two, has made this one of the best investments of all time.
Also, you have the entire original warranty period (1 year on a Mac) to decide if you want to spring for the extra 2 years warranty.
only for cell phone, and even then, its referred to as 'insurance'