Extended warranties unnecessary on electronics on clarkhoward.com

Extended warranties are all the rage when you purchase electronics and many other popular items. But Clark is here to reiterate his refrain that they aren't necessary.

Consumer Reports says that electronics seldom fail. In fact, TVs only fail at a three percent rate in the first four years of ownership. Why would anyone buy a warranty when you have a 97 percent that your TV will work for numerous years?

Yet most people have a strange psychology about what we'll throw our money at. The Journal of Consumer Research found that people are more likely to buy a warranty on something they enjoy than on something they don't. So a business owner may not buy a warranty on business equipment, but he or she will do so on a big-screen TV!

The reality is that extended warranties have massive costs and aren't a good investment. For example, The New York Times found a popular Nikon camera where the warranty was 27 percent of the purchase price! For laptops, a warranty can be up a third of the price!

Yet there is a free way to extend a manufacturer's warranty. Many credit cards will double the warranty up to one additional year if you use their card to make the purchase.

What others are saying

Extended Warranties
Wow. So if you buy an extended warranty and then want to use it you are given a refurbished item in return? That doesn't sound honest. These things wouldn't be offered if they're weren't profitable. In two or three years, these same computer should be twice as fast and half as expensive.
By Tom @ 12/16/09 02:54:21 PMreport abuse
COMPUTERS
THE ONLY WARRANTY THAT HAS PAID FOR ME WAS THE STORE WARRANTY AT BEST BUY FOR THE GEEK SQUAD TO COME AND FIX MY COMPUTER, THAT HAS PAID TIME AND AGAIN. THEY WILL COME OUT FOR ANYTHING AND THE HARD DRIVE FAILED TWICE!
By kim @ 11/22/09 03:00:18 PMreport abuse
Extended Warranties
I agree on your stand. A couple that worked: I got a 13" RCA TV and they asked me to buy a $14 warranty. I did and the TV went on the fritz. I applied the $84 to a new Sony.
They had a 24" Magnavox out of box salle. I kept haggling untill he got down to $150 (about half price) plus $40 extended warranty. I knew I would not use it, but I knew he would get half. So I bought it that way and the salesman got $20.
Chryler had a %$4,800 bumper-to-bumper warranty on an 06 Minivan, obviously too much. At the end of 08 they had it for helf price. I figured I would need a tranny or starter or something else as I put the miles on it. I make payments interest free. It is transferrable if I do sell it.
However, your general stand against warranties is correct.
By Jerry @ 11/21/09 09:12:03 PMreport abuse
Apple I-Pod's
When purchasing an I-Pod it includes a one year warranty and ONLY 1 TELEPHONE CALL FOR HELP. You are required to purchase Apple Care for $39.00 which includes an additional years warranty and unlimited calls for assistance during that period. What a rip off if you get the refurbished I-Pod for $99.00 your required to pay 40% more for help?
By Paul Curtis @ 11/20/09 07:16:19 AMreport abuse
Clark's Right On
I bought a 63' Plasma Samsung which developed 2 lines down the middle a day after I got it.But they came and fixed it, and it's been problem free for over a year now.
By tony carrillo @ 11/19/09 09:56:03 PMreport abuse
square trade
On mailable products square trade warranties are a good deal. Plus even their low price usually have a promo code for further reduction. I used it for a camera and because it was unrepairable they sent me a new one.
By m. saler @ 11/18/09 09:48:02 AMreport abuse
Bad products on the market
I cannot believe the amount of bad products on the market. Why do we even need to buy warranties? Products that we purchase, many for a lot of money, are supposed to work and last. I do buy warranties for my electronics because in my experience, the products have been defective. In one case, I purchased an ipod but did not buy the warranty. I convinced the store to return the defective product (since they sold it to me) and give me another without cost. My relationship is with the store, the stores relationship is with the manufacturing company.
By T Duke @ 11/18/09 07:54:26 AMreport abuse
extended warranties
I have done a 180. I never would buy them. An appliance store (50yr. old) has changed my mind. I purchase a dryer 5yr. ago and paid $99 for a full 5yr. coverage. After 5yr. if you did not need any srevice they give you your $99 back in the form of a certificate. I just used my certificate toward a new refrigerator and bought a 5yr. coverage for $125 To me its a can't loose deal.I live in Fond du Lac, WI
By Richard Ewald @ 11/18/09 01:18:27 AMreport abuse
extended warrantees
Extended warrantees are so expensive.I was quoted 3,000.Is that worth it?
By orpha atkinson @ 11/17/09 11:20:14 AMreport abuse
Sometimes worth it.
If you are fortunate to live in proximity to a Nebraska Furniture Mart, their ex. warr. are very reasonable. Most are way under $100 and many under $50 to extend protection for 3-5 years. This beats out Sears or Best Buy who like to charge hundreds per product.
Husband is pretty handy but not with electronics. We paid for the ex.warr. on our HE washer in 2002. It has paid for itself many times over in repairs because these machines can be extremely sensitive. Whenever it's not used, we just call in a tune up before the expiration of the warranty.
By JCM @ 11/17/09 10:49:06 AMreport abuse
RV Extended Warranty Really Paid OFF
We have an expensive motor home with an extended warranty. We have had several major expensive claims in the last two years and the warranty has more than paid for itself. We had no problems with the warranty company or the repair facilities. In this case you would have been very WRONG Clark.
By MM @ 11/17/09 10:28:26 AMreport abuse
Not sure Clark is right on this one
In the last 18 months I have replaced all my major appliances to energy efficiency and top of the range models. During the guarantee period I had to have engineers out for all 4 appliances on more than one occasion.
The problem is that the motherboards seem to give up. The latest I heard about my range when the oven failed to work was that whenever we have a thunderstorms it can burn out the wiring. To have these parts replaced is expensive besides paying for the labor. I did decide to extend the warranty on the range fortunately. Also I persuaded SEARS to extend the warranty on the combination microwave for another year after repeated problems with that appliance.
So I have mixed feelings on this topic.
By LORAINE @ 11/17/09 08:31:07 AMreport abuse
Extended warranty
Clark is once again right on the money.
Extended warranty purchase is unnecessary in any situation.
As for the persons talking about 3000 laptops, please. Only a fool would buy that nonsense.
They don't make 3000 laptops in the first place. If they did, why would you trust anything that someone who bought one would say?
No reason to spend more than 400 on a very good laptop ever.
By Klide @ 11/17/09 07:26:36 AMreport abuse
Television repair
We just received our Hitachi back from the shop. It was turning yellow and the part that fixed it costs about 1000 bucks. The Tv was 2300 bucks four years ago. Without the extended warrentee, we probably wouldn't have fixed it as the set was no good, now we are good for about another 4 years, hopefully. No charge for the repair job, Thank goodness.
By Robin @ 11/17/09 02:15:52 AMreport abuse
Piece of Mind Value For Major Appliances
Today's major appliances work more effectively when the work. When they break, which is often from personal experience -- the cost of computer boards, contacts/relays or virtualy any labor toward replacement is tremendous. True, that some items such as sound-receivers and televisions have greater reliability. Yet, any place where steamy water vapor collects on delicate circuits there will be costly repairs. Peace of mind costs money.
By David Commerford @ 11/17/09 12:03:20 AMreport abuse
I can't agree about everything
For most electronics like TVs and other home appliances, I don't think warranties are necessary. But for computers, I think adding an extra year is worth the cost. I've had two laptops fail on me within two years (three times within a two year span), so the warranty has paid for itself three time over. The one time I didn't extend, my computer cut out on me. Now I'll be out $700 because it's a better deal to replace it than repair it. I've never bought a warranty on anything but a laptop, and I doubt I'll ever need to, but laptops are definitely worth the extension in my book. I won't make that mistake again!
By Sharon @ 11/16/09 09:06:07 PMreport abuse
Warranty with American Express/Costco
Every TV in my house was bought at Costco with there 2 year free warranty and if you purchase with Amex.. you get an extra year at no cost. 3 years total with no xtra charge, just make sure to pay off the credit card as if you bought with cash.....
By John in Carlsbad, Ca @ 11/16/09 08:53:26 PMreport abuse
warranty
I buy a warranty if the electronic is a hand held. Chances are it WILL be dropped and I have saved money because of this
By Karen @ 11/16/09 07:02:05 PMreport abuse
Bad Ideas
We have purchased only 2 warranties: (1) on a camcorder -- when it needed repair, the store had gone out of business so the warranty was useless; (2) a computer monitor that was replaced with someone else's refurbished monitor (which wasn't in as good a shape as the one we had to exchange -- the replacement had scratches on the case). They're a bad idea.
By katieb @ 11/16/09 06:32:23 PMreport abuse
Warranty bias
I see many people strongly disagreeing with Clark here! But like most consumer reviews you'll find online, the people who take the time to post a review are generally those with some venting to do. In this case, these are the people who have been unfortunate enough to have a product fail. I don't blame you for feeling strongly about this, but truthfully - how many appliances or electronics do you have in your home that HAVEN'T failed in the first several years? Total up the prices of all the combined warranties you've been offered in stores and compare THAT amount of money to that which you've spent on prematurely failing electronics. According to Clark's statistics, warranties are not worth it. Don't let the frustration you feel after having one product fail confuse you into believing warranties are worth it. If you still believe in warranties, ask yourself why electronic/appliance/auto salespeople make such hefty commissions from selling warranties.
By Brian @ 11/16/09 05:43:21 PMreport abuse
I agree with Clark
As an ex-100% commission based electronics salesman, warranties are great if/when you need them. Manufacturer warranties often only cover very specific failures while the store warranties are pretty inclusive. That being said, it's a gamble. The store is betting on the item and you're betting against it. Here's the catch, not only are electronics pretty reliable but the store's got their deck stacked. The price of the warranty is often enough for the store to easily replace the item (with a refurb or occasionally new item) and still make a profit. We used to have TV's that had over 300% markup. That's probably changed since the old days with how competitive these new models are.

Oh, two more important aspect you may consider with my advice. 1, as a salesman, the warranties were 50% commission. That's right, I'd personally pocket half of it. And, 2, I never, ever, ever buy the extended warranties.

Do your research on Ebay, you can often buy the refurb you'd get for less than the warranty on your own anyway.
By Gabe @ 11/16/09 05:34:26 PMreport abuse
For mp3 players
I agree that extended warranties are a waste of money on almost every item. I do, however, purchase one for every mp3 player I buy. They are small, an I take mine almost everywhere I go. I have purchased 4 warranties for 4 ipods at Best Buy. I have used 3 out of the 4. One for screen failure and 2 for audio output issues. Well worth for all small breakable items except laptops
By Paul @ 11/16/09 05:25:34 PMreport abuse
Major kitchen appliance likely need a warranty
Our washing machine, regrigerator, oven/range, over the range microwave and dishwasher all have failed multiple times. Out of pocket expenses would have easily exceed the extra insurance expense by a wide margin
By David Commerford @ 11/16/09 05:05:23 PMreport abuse
auto warranty
Some years ago I bought an extended warranty with my used Buick. I knew that auto warranties were negotiable so I dickered to get a price that was 1/3 of the original asking price. Within the extended warranty period my automatic transmission failed and needed a complete rebuild. Expensive, and paid for in full by the extended warranty.
By Jerry Corvo @ 11/16/09 03:51:10 PMreport abuse
Generalizations stink :)
I am aware of Clark's position on extended warranties. As a longtime Mac user, I have to say that I always purchase Applecare, figuring into the (already steepish) cost of the computer. Note: It has NEVER failed to be used. Quality control issue? Maybe. But since my 8100 (maybe, what, 12 or 15 years ago), I have always had to use Applecare. I wouldn't consider buying a Mac without it. BTW - Clark, I just love your show and your kindly manner, but we don't agree on satellite TV providers either. I think they really stink, but that's another letter. :)
By Bobbo @ 11/16/09 03:26:10 PMreport abuse
Extended Warranties
I never buy extended warranties but I did on a recent camera purchase and I am very glad I did. My virtually indestructable camera became jammed with powder-fine sand while caving. Best Buy repaired it for free and no questions asked so in this instant the extended warranty is worth every penny.
By Dianne @ 11/16/09 02:39:03 PMreport abuse
extended warrantees
Alway used credit cards to extend warrantee HOWEVER, many are dropping this feature AND try a buy a car with a credit card. No way the dealer will allow it.
By Al @ 11/16/09 01:54:54 PMreport abuse
BUY THE WARRANTY
I WOULD LIKE TO SAY,BUY THE WARRANTY! I PURCHASED A LCD TV & HAVE HAD IT OVER 2 YEARS.THE MAIN POWER SYSTEM WENT OUT.IF I PAY OVER $200.00 FOR ANYTHING,I WILL BUY THE WARRANTY.EVERYTHING IS JUNK NOWADAYS!
By WAYNE @ 11/16/09 01:28:43 PMreport abuse
depend on the price
I guess it really depends on how much the extended warranty would cost.
By aip @ 11/16/09 01:22:43 PMreport abuse
worked for me
I bought an extended warranty as part of a wii package from toys-r-us, the wii quit 1 month after Nintendo's warranty expired and the t-r-u fixed it. In my case, buying as extended warranty saved at least $165.
By Jeff @ 11/16/09 01:04:26 PMreport abuse
extended warranties are junk
If you were to get an extended warranty on a piece of electronic equipment and need to use it, they usually replace the entire item. What people may or may not know, is that the replacement items are almost always refurbished items. So, in essence, you are paying up to 33% of the cost of the electronic item for a warranty that will give you a broken then repaired item in return IF your new item breaks. This makes no sense. People will stick with what they are comfortable with though I guess. Warranties: Not me, Not now, Not ever!
By Bob @ 11/16/09 12:59:12 PMreport abuse
Good Buy for Me
I have had 2 computers and one digital camera replaced under extended warranties. Electronics are built to quit early to you have to keep replacing them. Especially computers.
By Erika @ 11/16/09 12:55:42 PMreport abuse
Costco Doubles Warranty for Free
I try to buy all electronics from Costco since they double manufacturers warranty for free and give you free tech support. My HP laptop hard drive crashed after a year and it was replaced promptly at no charge. The Costco rep worked with HP rep quickly and smoothly. I love Costco even more!
By Amy @ 11/16/09 12:54:44 PMreport abuse
use it, it works
I have come out way ahead using the extended warranty. These days it covers any and all damage to the item and they have to replace it with a new item if the old one is no longer available. I wait until the warranty is almost up and call it in for damage. Within a week a new item has arrived with a prepaid label to send back the old. Also, Washer, dryer, television has definately come in handy. it has saved/ made me thousands over the years. ALWAYS TAKE THE EXTENDED WARRANTY CLARK!!
By Bruce is loose @ 11/15/09 09:29:22 PMreport abuse
Not always true
I tend to disagree with this tip. I am in the TV repair business and I see a far higher failure rate of Plasma and LCD TVs than of traditional CRT TVs. Some models are plagued with unfixable problems. Many failing soon after the 12 month manufacturers warranty. Even though is takes business from me, when people who are considering a high end TV ask me, I always recommend buying an extended warranty. Target used to have reasonably priced extended warranties Not sure if they've changed. I have friends in the appliance business and the quality of appliances has gone down hill as well. Always get the extended warranty on a new washer or high end stove but not necessarily on a dryer or refrigerator. Appliance warranties are pretty reasonable.
By Larry @ 11/15/09 05:58:39 PMreport abuse
A Front
The salespersons are rated on how many warranties and accessories they sell. If they don't sell enough, then they will be fired. The consumer electronics are a front for the real profit center, warranties and accessories.
By edrebber @ 11/14/09 10:40:22 AMreport abuse
wow
I did not know you could even pay as much as $3k for a laptop. so anyone claiming that buying an extended warranty after supposedly paying $3k for a laptop is hardly anyone I would be taking financial advice from.
sounds to me like angela is an appliance salesperson.
By brian @ 11/13/09 07:01:44 PMreport abuse
Extended Warranties
I disagree. Several times the 4 year extended appliance warranty has saved me thousands. It only costs $ 125.00. Both my dryer and washer have had repairs. Things are made in China now and dont last as you say. Also on a laptop, the $ 179 warranty, is more than worth it for a $ 3,000 item.
By Angela @ 11/13/09 03:34:33 PMreport abuse
losers
buying extended warranties are like playing the state lotteries....for losers and daydreamers. the risk/reward ratios are way, way, way out of whack.
But hey, what do I know.
By brian @ 11/13/09 01:51:49 PMreport abuse
There are warranties and warranties. IMO it is stupid to buy an extended warranty for a TV, DVD player, Stereo, Computer, Camera, these are items that by the time they might break they are outdated and have $0.00 value. On the contrary, certain appliances suffer more wear and tear and can go more than 10 years before becoming obsolete, in this family Ovens and Refrigerators seldom fail, but Dishwashers, Washer and Dryers run a higher risk.
By Jorge @ 11/13/09 12:33:33 PMreport abuse
I've had good luck with some extended warranties.
I have bought warranties but not from the stores, you can get a good extended warranty from third party companies
like ebay's square trade, etc,
for about 10% of the price of the product, if the product breaks they usually pay off the entire cost of the product.

I've had several products break and had the warranty companies pay off
(a couple of times for over $500,
the last time $250 (on a $25 warranty) on a used Asus laptop I bought on Ebay.

I just wouldn't pay much more than 10% of the cost of the product for a 3 year extended warranty, anything a lot more than 10% is too much!
By Scott @ 11/13/09 07:08:25 AMreport abuse
sales people
Becouse a sales person makes more money selling you the warrenty then they do selling you the product.
By Mike @ 11/13/09 04:11:28 AMreport abuse
response to z
I've never bought a warranty in my life, automobile, electronics, you name it. Why in the world would salespeople hate you just because you refuse to donate money to the company for whom they work?
By Travis @ 11/12/09 08:28:40 PMreport abuse
Not So Bad
We purchased extended warranties for two flat screen TVs. The first TV failed within one year and they gave us the purchase price. We replaced it with a slightly more expensive plasma and added another warranty. A little over a year later, the power supply failed and they replaced a circuit board. Both these repairs were for more than the warranty we paid. We had no problems getting the repair/replacements done.
By KO @ 11/12/09 06:32:49 PMreport abuse
Self Insured
25 years ago, I decided to self-insure myself. Every time I bought a piece of electronics, I saved away the equivalent cost of the extended warranty. Within 3 years, I saved enough to replace anything I bought. The salespeople absolutely hated me. I encourage everyone to do the same.
By z @ 11/12/09 03:54:53 PMreport abuse
Read the lawyer-maggot mice type
Extended warranties are loaded with weasel clauses, so good luck collecting on them anyway.
By Lawyers are maggot scum @ 11/12/09 03:42:58 PMreport abuse

Extended Warranties

Wow. So if you buy an extended warranty and then want to use it you are given a refurbished item in return? That doesn't sound honest. These things wouldn't be offered if they're weren't profitable. In two or three years, these same computer should be twice as fast and half as expensive.

By Tom @ 12/16/09 02:54:21 PMreport abuse

COMPUTERS

THE ONLY WARRANTY THAT HAS PAID FOR ME WAS THE STORE WARRANTY AT BEST BUY FOR THE GEEK SQUAD TO COME AND FIX MY COMPUTER, THAT HAS PAID TIME AND AGAIN. THEY WILL COME OUT FOR ANYTHING AND THE HARD DRIVE FAILED TWICE!

By kim @ 11/22/09 03:00:18 PMreport abuse

I agree on your stand. A couple that worked: I got a 13" RCA TV and they asked me to buy a $14 warranty. I did and the TV went on the fritz. I applied the $84 to a new Sony.
They had a 24" Magnavox out of box salle. I kept haggling untill he got down to $150 (about half price) plus $40 extended warranty. I knew I would not use it, but I knew he would get half. So I bought it that way and the salesman got $20.
Chryler had a %$4,800 bumper-to-bumper warranty on an 06 Minivan, obviously too much. At the end of 08 they had it for helf price. I figured I would need a tranny or starter or something else as I put the miles on it. I make payments interest free. It is transferrable if I do sell it.
However, your general stand against warranties is correct.

By Jerry @ 11/21/09 09:12:03 PMreport abuse

Apple I-Pod's

When purchasing an I-Pod it includes a one year warranty and ONLY 1 TELEPHONE CALL FOR HELP. You are required to purchase Apple Care for $39.00 which includes an additional years warranty and unlimited calls for assistance during that period. What a rip off if you get the refurbished I-Pod for $99.00 your required to pay 40% more for help?

By Paul Curtis @ 11/20/09 07:16:19 AMreport abuse

Clark's Right On

I bought a 63' Plasma Samsung which developed 2 lines down the middle a day after I got it.But they came and fixed it, and it's been problem free for over a year now.

By tony carrillo @ 11/19/09 09:56:03 PMreport abuse

square trade

On mailable products square trade warranties are a good deal. Plus even their low price usually have a promo code for further reduction. I used it for a camera and because it was unrepairable they sent me a new one.

By m. saler @ 11/18/09 09:48:02 AMreport abuse

Bad products on the market

I cannot believe the amount of bad products on the market. Why do we even need to buy warranties? Products that we purchase, many for a lot of money, are supposed to work and last. I do buy warranties for my electronics because in my experience, the products have been defective. In one case, I purchased an ipod but did not buy the warranty. I convinced the store to return the defective product (since they sold it to me) and give me another without cost. My relationship is with the store, the stores relationship is with the manufacturing company.

By T Duke @ 11/18/09 07:54:26 AMreport abuse

extended warranties

I have done a 180. I never would buy them. An appliance store (50yr. old) has changed my mind. I purchase a dryer 5yr. ago and paid $99 for a full 5yr. coverage. After 5yr. if you did not need any srevice they give you your $99 back in the form of a certificate. I just used my certificate toward a new refrigerator and bought a 5yr. coverage for $125 To me its a can't loose deal.I live in Fond du Lac, WI

By Richard Ewald @ 11/18/09 01:18:27 AMreport abuse

extended warrantees

Extended warrantees are so expensive.I was quoted 3,000.Is that worth it?

By orpha atkinson @ 11/17/09 11:20:14 AMreport abuse

Sometimes worth it.

If you are fortunate to live in proximity to a Nebraska Furniture Mart, their ex. warr. are very reasonable. Most are way under $100 and many under $50 to extend protection for 3-5 years. This beats out Sears or Best Buy who like to charge hundreds per product.
Husband is pretty handy but not with electronics. We paid for the ex.warr. on our HE washer in 2002. It has paid for itself many times over in repairs because these machines can be extremely sensitive. Whenever it's not used, we just call in a tune up before the expiration of the warranty.

By JCM @ 11/17/09 10:49:06 AMreport abuse

RV Extended Warranty Really Paid OFF

We have an expensive motor home with an extended warranty. We have had several major expensive claims in the last two years and the warranty has more than paid for itself. We had no problems with the warranty company or the repair facilities. In this case you would have been very WRONG Clark.

By MM @ 11/17/09 10:28:26 AMreport abuse

Not sure Clark is right on this one

In the last 18 months I have replaced all my major appliances to energy efficiency and top of the range models. During the guarantee period I had to have engineers out for all 4 appliances on more than one occasion.
The problem is that the motherboards seem to give up. The latest I heard about my range when the oven failed to work was that whenever we have a thunderstorms it can burn out the wiring. To have these parts replaced is expensive besides paying for the labor. I did decide to extend the warranty on the range fortunately. Also I persuaded SEARS to extend the warranty on the combination microwave for another year after repeated problems with that appliance.
So I have mixed feelings on this topic.

By LORAINE @ 11/17/09 08:31:07 AMreport abuse

Extended warranty

Clark is once again right on the money.
Extended warranty purchase is unnecessary in any situation.
As for the persons talking about 3000 laptops, please. Only a fool would buy that nonsense.
They don't make 3000 laptops in the first place. If they did, why would you trust anything that someone who bought one would say?
No reason to spend more than 400 on a very good laptop ever.

By Klide @ 11/17/09 07:26:36 AMreport abuse

Television repair

We just received our Hitachi back from the shop. It was turning yellow and the part that fixed it costs about 1000 bucks. The Tv was 2300 bucks four years ago. Without the extended warrentee, we probably wouldn't have fixed it as the set was no good, now we are good for about another 4 years, hopefully. No charge for the repair job, Thank goodness.

By Robin @ 11/17/09 02:15:52 AMreport abuse

Piece of Mind Value For Major Appliances

Today's major appliances work more effectively when the work. When they break, which is often from personal experience -- the cost of computer boards, contacts/relays or virtualy any labor toward replacement is tremendous. True, that some items such as sound-receivers and televisions have greater reliability. Yet, any place where steamy water vapor collects on delicate circuits there will be costly repairs. Peace of mind costs money.

By David Commerford @ 11/17/09 12:03:20 AMreport abuse

I can't agree about everything

For most electronics like TVs and other home appliances, I don't think warranties are necessary. But for computers, I think adding an extra year is worth the cost. I've had two laptops fail on me within two years (three times within a two year span), so the warranty has paid for itself three time over. The one time I didn't extend, my computer cut out on me. Now I'll be out $700 because it's a better deal to replace it than repair it. I've never bought a warranty on anything but a laptop, and I doubt I'll ever need to, but laptops are definitely worth the extension in my book. I won't make that mistake again!

By Sharon @ 11/16/09 09:06:07 PMreport abuse

Warranty with American Express/Costco

Every TV in my house was bought at Costco with there 2 year free warranty and if you purchase with Amex.. you get an extra year at no cost. 3 years total with no xtra charge, just make sure to pay off the credit card as if you bought with cash.....

By John in Carlsbad, Ca @ 11/16/09 08:53:26 PMreport abuse

warranty

I buy a warranty if the electronic is a hand held. Chances are it WILL be dropped and I have saved money because of this

By Karen @ 11/16/09 07:02:05 PMreport abuse

Bad Ideas

We have purchased only 2 warranties: (1) on a camcorder -- when it needed repair, the store had gone out of business so the warranty was useless; (2) a computer monitor that was replaced with someone else's refurbished monitor (which wasn't in as good a shape as the one we had to exchange -- the replacement had scratches on the case). They're a bad idea.

By katieb @ 11/16/09 06:32:23 PMreport abuse

Warranty bias

I see many people strongly disagreeing with Clark here! But like most consumer reviews you'll find online, the people who take the time to post a review are generally those with some venting to do. In this case, these are the people who have been unfortunate enough to have a product fail. I don't blame you for feeling strongly about this, but truthfully - how many appliances or electronics do you have in your home that HAVEN'T failed in the first several years? Total up the prices of all the combined warranties you've been offered in stores and compare THAT amount of money to that which you've spent on prematurely failing electronics. According to Clark's statistics, warranties are not worth it. Don't let the frustration you feel after having one product fail confuse you into believing warranties are worth it. If you still believe in warranties, ask yourself why electronic/appliance/auto salespeople make such hefty commissions from selling warranties.

By Brian @ 11/16/09 05:43:21 PMreport abuse

I agree with Clark

As an ex-100% commission based electronics salesman, warranties are great if/when you need them. Manufacturer warranties often only cover very specific failures while the store warranties are pretty inclusive. That being said, it's a gamble. The store is betting on the item and you're betting against it. Here's the catch, not only are electronics pretty reliable but the store's got their deck stacked. The price of the warranty is often enough for the store to easily replace the item (with a refurb or occasionally new item) and still make a profit. We used to have TV's that had over 300% markup. That's probably changed since the old days with how competitive these new models are.

Oh, two more important aspect you may consider with my advice. 1, as a salesman, the warranties were 50% commission. That's right, I'd personally pocket half of it. And, 2, I never, ever, ever buy the extended warranties.

Do your research on Ebay, you can often buy the refurb you'd get for less than the warranty on your own anyway.

By Gabe @ 11/16/09 05:34:26 PMreport abuse

For mp3 players

I agree that extended warranties are a waste of money on almost every item. I do, however, purchase one for every mp3 player I buy. They are small, an I take mine almost everywhere I go. I have purchased 4 warranties for 4 ipods at Best Buy. I have used 3 out of the 4. One for screen failure and 2 for audio output issues. Well worth for all small breakable items except laptops

By Paul @ 11/16/09 05:25:34 PMreport abuse

Major kitchen appliance likely need a warranty

Our washing machine, regrigerator, oven/range, over the range microwave and dishwasher all have failed multiple times. Out of pocket expenses would have easily exceed the extra insurance expense by a wide margin

By David Commerford @ 11/16/09 05:05:23 PMreport abuse

auto warranty

Some years ago I bought an extended warranty with my used Buick. I knew that auto warranties were negotiable so I dickered to get a price that was 1/3 of the original asking price. Within the extended warranty period my automatic transmission failed and needed a complete rebuild. Expensive, and paid for in full by the extended warranty.

By Jerry Corvo @ 11/16/09 03:51:10 PMreport abuse

Generalizations stink :)

I am aware of Clark's position on extended warranties. As a longtime Mac user, I have to say that I always purchase Applecare, figuring into the (already steepish) cost of the computer. Note: It has NEVER failed to be used. Quality control issue? Maybe. But since my 8100 (maybe, what, 12 or 15 years ago), I have always had to use Applecare. I wouldn't consider buying a Mac without it. BTW - Clark, I just love your show and your kindly manner, but we don't agree on satellite TV providers either. I think they really stink, but that's another letter. :)

By Bobbo @ 11/16/09 03:26:10 PMreport abuse

I never buy extended warranties but I did on a recent camera purchase and I am very glad I did. My virtually indestructable camera became jammed with powder-fine sand while caving. Best Buy repaired it for free and no questions asked so in this instant the extended warranty is worth every penny.

By Dianne @ 11/16/09 02:39:03 PMreport abuse

Alway used credit cards to extend warrantee HOWEVER, many are dropping this feature AND try a buy a car with a credit card. No way the dealer will allow it.

By Al @ 11/16/09 01:54:54 PMreport abuse

BUY THE WARRANTY

I WOULD LIKE TO SAY,BUY THE WARRANTY! I PURCHASED A LCD TV & HAVE HAD IT OVER 2 YEARS.THE MAIN POWER SYSTEM WENT OUT.IF I PAY OVER $200.00 FOR ANYTHING,I WILL BUY THE WARRANTY.EVERYTHING IS JUNK NOWADAYS!

By WAYNE @ 11/16/09 01:28:43 PMreport abuse

depend on the price

I guess it really depends on how much the extended warranty would cost.

By aip @ 11/16/09 01:22:43 PMreport abuse

worked for me

I bought an extended warranty as part of a wii package from toys-r-us, the wii quit 1 month after Nintendo's warranty expired and the t-r-u fixed it. In my case, buying as extended warranty saved at least $165.

By Jeff @ 11/16/09 01:04:26 PMreport abuse

extended warranties are junk

If you were to get an extended warranty on a piece of electronic equipment and need to use it, they usually replace the entire item. What people may or may not know, is that the replacement items are almost always refurbished items. So, in essence, you are paying up to 33% of the cost of the electronic item for a warranty that will give you a broken then repaired item in return IF your new item breaks. This makes no sense. People will stick with what they are comfortable with though I guess. Warranties: Not me, Not now, Not ever!

By Bob @ 11/16/09 12:59:12 PMreport abuse

Good Buy for Me

I have had 2 computers and one digital camera replaced under extended warranties. Electronics are built to quit early to you have to keep replacing them. Especially computers.

By Erika @ 11/16/09 12:55:42 PMreport abuse

Costco Doubles Warranty for Free

I try to buy all electronics from Costco since they double manufacturers warranty for free and give you free tech support. My HP laptop hard drive crashed after a year and it was replaced promptly at no charge. The Costco rep worked with HP rep quickly and smoothly. I love Costco even more!

By Amy @ 11/16/09 12:54:44 PMreport abuse

use it, it works

I have come out way ahead using the extended warranty. These days it covers any and all damage to the item and they have to replace it with a new item if the old one is no longer available. I wait until the warranty is almost up and call it in for damage. Within a week a new item has arrived with a prepaid label to send back the old. Also, Washer, dryer, television has definately come in handy. it has saved/ made me thousands over the years. ALWAYS TAKE THE EXTENDED WARRANTY CLARK!!

By Bruce is loose @ 11/15/09 09:29:22 PMreport abuse

Not always true

I tend to disagree with this tip. I am in the TV repair business and I see a far higher failure rate of Plasma and LCD TVs than of traditional CRT TVs. Some models are plagued with unfixable problems. Many failing soon after the 12 month manufacturers warranty. Even though is takes business from me, when people who are considering a high end TV ask me, I always recommend buying an extended warranty. Target used to have reasonably priced extended warranties Not sure if they've changed. I have friends in the appliance business and the quality of appliances has gone down hill as well. Always get the extended warranty on a new washer or high end stove but not necessarily on a dryer or refrigerator. Appliance warranties are pretty reasonable.

By Larry @ 11/15/09 05:58:39 PMreport abuse

A Front

The salespersons are rated on how many warranties and accessories they sell. If they don't sell enough, then they will be fired. The consumer electronics are a front for the real profit center, warranties and accessories.

By edrebber @ 11/14/09 10:40:22 AMreport abuse

wow

I did not know you could even pay as much as $3k for a laptop. so anyone claiming that buying an extended warranty after supposedly paying $3k for a laptop is hardly anyone I would be taking financial advice from.
sounds to me like angela is an appliance salesperson.

By brian @ 11/13/09 07:01:44 PMreport abuse

I disagree. Several times the 4 year extended appliance warranty has saved me thousands. It only costs $ 125.00. Both my dryer and washer have had repairs. Things are made in China now and dont last as you say. Also on a laptop, the $ 179 warranty, is more than worth it for a $ 3,000 item.

By Angela @ 11/13/09 03:34:33 PMreport abuse

losers

buying extended warranties are like playing the state lotteries....for losers and daydreamers. the risk/reward ratios are way, way, way out of whack.
But hey, what do I know.

By brian @ 11/13/09 01:51:49 PMreport abuse

There are warranties and warranties. IMO it is stupid to buy an extended warranty for a TV, DVD player, Stereo, Computer, Camera, these are items that by the time they might break they are outdated and have $0.00 value. On the contrary, certain appliances suffer more wear and tear and can go more than 10 years before becoming obsolete, in this family Ovens and Refrigerators seldom fail, but Dishwashers, Washer and Dryers run a higher risk.

By Jorge @ 11/13/09 12:33:33 PMreport abuse

I've had good luck with some extended warranties.

I have bought warranties but not from the stores, you can get a good extended warranty from third party companies
like ebay's square trade, etc,
for about 10% of the price of the product, if the product breaks they usually pay off the entire cost of the product.

I've had several products break and had the warranty companies pay off
(a couple of times for over $500,
the last time $250 (on a $25 warranty) on a used Asus laptop I bought on Ebay.

I just wouldn't pay much more than 10% of the cost of the product for a 3 year extended warranty, anything a lot more than 10% is too much!

By Scott @ 11/13/09 07:08:25 AMreport abuse

sales people

Becouse a sales person makes more money selling you the warrenty then they do selling you the product.

By Mike @ 11/13/09 04:11:28 AMreport abuse

response to z

I've never bought a warranty in my life, automobile, electronics, you name it. Why in the world would salespeople hate you just because you refuse to donate money to the company for whom they work?

By Travis @ 11/12/09 08:28:40 PMreport abuse

Not So Bad

We purchased extended warranties for two flat screen TVs. The first TV failed within one year and they gave us the purchase price. We replaced it with a slightly more expensive plasma and added another warranty. A little over a year later, the power supply failed and they replaced a circuit board. Both these repairs were for more than the warranty we paid. We had no problems getting the repair/replacements done.

By KO @ 11/12/09 06:32:49 PMreport abuse

Self Insured

25 years ago, I decided to self-insure myself. Every time I bought a piece of electronics, I saved away the equivalent cost of the extended warranty. Within 3 years, I saved enough to replace anything I bought. The salespeople absolutely hated me. I encourage everyone to do the same.

By z @ 11/12/09 03:54:53 PMreport abuse

Read the lawyer-maggot mice type

Extended warranties are loaded with weasel clauses, so good luck collecting on them anyway.

By Lawyers are maggot scum @ 11/12/09 03:42:58 PMreport abuse

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Nov 12, 2009 -- Extended warranties unnecessary on electronics

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