Extended warranty sales are up…despite Clark’s warnings on clarkhoward.com

Clark read some bad news in the Hartford Courant: Sales of extended warranties are up this year by 10%. Clark thought the word had gotten out that these kind of warranties are a bad deal.

And what’s more, almost 50% of consumers buy extended warranties on computer purchases. This is the worst deal of all! Why is this such a poor financial choice?

Let’s say you bought a warranty that extended your coverage to three years. And let’s say that computer finally croaks…at two years, 11 months and 29 days. You’re feeling great, because you’re covered for repair, right? You feel you dodged a bullet.

But computers depreciate in value like few other things. The value of that computer you bought two years and eleven months ago, at this point is not even worth the price of the extended warranty you purchased.

Moore’s Law says computers have a very short life cycle– essentially becoming worthless to a used-computer buyer at about 18 months.

And it’s not just computers. A Flat screen TV purchased three years ago is worth just pennies on the dollar. The capabilities of new, modern flat screens are so much higher, and the price is much lower. In short, never, ever insure a rapidly depreciating asset. And no product depreciates faster than electronics or computers. Consumer Reports agrees, saying most electronics are built and priced to be replaced every few years.

Big box retailers push them because they are such a profit point. In some cases it’s the only thing that keeps their doors open. Resist their sales push if pressed to buy one.

What about car warranties? Clark is “neutral” on them. If a $29 DVD player breaks, you won’t have too much trouble replacing that. A car, on the other hand, may break your bank. Consider carefully what you’re insuring when it comes to extended warranties.

What others are saying

Extended Warranties
The only time I purchase an extended warranty is for big ticket items: cars, large appliances anything where repairs could be costly. Once I purchased a landline phone at Best Buy for $12 and they wanted to sell me an extended warranty. Are you serious? I just laughed and said no thank you. I wonder if anyone would purchase a warranty for a "disposable" product?
By Jean @ 01/26/10 02:15:39 PMreport abuse
Extended Warranties
I agree with Clark! On electronics, I buy from Costco & get another yr. for free! Granted, the selection is not as varied but price & service mean so much more. Got daughter a 42" flat screen that went out 13 months later. Manufacturer didn't even make TV's anymore so Costco had her come to store & pick out a new one for same price!! Free extra year saved me buying her a new TV. Same with computers-bought all our laptops there. They repair & replace with no hassle.
By J. Reeves @ 01/13/10 12:59:45 PMreport abuse
Extend warranty - Use Amex
I always pay for electronics and appliances with American Express. This extends the manufacturers waranty by a year. I'v used this coverage on a clothes dryer that died one month out of warrantee.
By Don @ 01/11/10 03:19:06 PMreport abuse
Apple Extended Care
I bought an iMac when they first went to the new thin line 5 years ago I had heard that they had trouble with heat so I bought the AppleCare plan for $125.00, 2 years later after many problems with overheating all repaired free, it still wasn't running properly I called Apple and they saw the many problems and said we're sending you a brand new iMac, not bad for $125.oo
By Mr. Bill @ 01/08/10 02:59:49 PMreport abuse
HDTV Warranty WORTH IT!
Exactly one year after purchasing my HDTV it died. Luckily, I had spent the 98 bucks for the extended warranty and got it fixed for free. The thing is,, the HDTV is still such new technology that things still are not quite ironed out yet. My friend, a cable installer, says he sees this all the time with HDTV's. So, hey, spend the extra bucks for the warranty, hey, it's better than having to go out and pay another 700 bucks for a new one!

Or, maybe this is just going to be the nature of HDTV's, where you will have to buy a new one every few years, much like we do with computers!
By Dennbert @ 01/04/10 10:47:31 PMreport abuse
Maybe for expensive purchases
I bought a 52" rear projection DLP TV right before the technology changed to Plasma, etc. It was $3400. The Sears guy sold me on the protection plan because it covered the $120 light bulb that had to be replaced every 2000 hours. I had troubles with the set as soon as the manufacturers warranty expired. It took them 5 in home service calls before they finally replaced the entire chassis. I could have never afforded the repairs otherwise. TV is still going strong 5 years later (and I got the bulb replaced twice making the whole warranty investment a no-brainer.
By Jonathan @ 01/04/10 01:27:04 PMreport abuse
Exxceptions to Mr. Howard
Sorry, Clark, but this is one of the two areas on which we differ. (The other is satellite TV providers vs. cable which, though cheaper, are SO much more trouble to deal with). Back on topic: I use Mac computers, and wouldn't consider owning one without (the rather costly) Applecare. Since my 8100 back in, what, 1986 or so? I've NEVER failed to need it. Despite their customer satisfaction rating, Macs seem to be good for 3-1/2 to 4 years, but often need major repairs before then. In the last 2 months, 3 of my 4 Macs have been in the shop, including an iMac less than a year old and getting a new logic board. I factor it into the admittedly high price of the computer. Insurance is always a personal choice between cost and security. If you can afford repairs, you don't need it, and can gamble on the device's reliability. When I buy a large screen TV, I'll certainly be purchasing the extended warranty, statistics aside. Thanks for all you do, Clark.
By Bobbo @ 01/04/10 12:56:47 PMreport abuse
Dell monitor
We do not buy waranties. Generally, a good idea if the product is reliable. Bought a Dell computer/monitor Dec.2008. The monitor died app. 20 days after the original warranty expired. We called Dell to report the problem in hopes it was something fixable. They said they could not even do a phone diagnosis unless we paid $50. After complaining and asking for the supervisor, he gave us one piece of advice and then declared the monitor dead.
One of the reasons for buying a Dell was the so-called reputation of dependable products - never dreaming anything would die after one year, 3 weeks. We have owned computers for 20 years and never before had a monitor with any problem at all--none of the others were Dell. I shall not rec. DELL to anyone else. (They were not even friendly or sympathetic.)i.lipford
By i. lipford @ 01/01/10 11:29:50 AMreport abuse
Extended Protection Plans
I'm a manager at Staples. I've been a customer service manager for at least two years. It is true that the price of extended protection plans makes us money, but the majority of retailers use 3rd party insurance companies. Say we make 40% profit on a protection plan, the rest is invested into an insurance company that works just like your car insurance. When they're given a claim they're first option is always repair, because that's cheaper, if that doesn't work we replace it with a refurb, if you do not want a refurb or if your refurb breaks or is defective, we give you the amount you paid for the computer. I always buy extended protection plans and it pays off. Yes, some things don't break, but the things that do are worth the insurance 100% of the time.
Laptops, Printers, GPS Units, and Digital Cameras are the most likely things in the electronics business to break. For the price of repairs or replacement it's worth your investments.
I hate watching people buying computers without the protection plans because sure enough a year later something happens and they have to either pay repair fees out the wazoo, which believe it or not are much more profitable to retailers like Staples Easy Tech, or Best Buy Geek Squad, than the insurance.
Clark Howard, you are very smart, but in this case, you are wrong.
By Erick Hagen @ 12/30/09 05:35:33 PMreport abuse
extended warranties are a good deal!
I bought a $3400 tv three years ago. After the second year it broke and it would have cost me over $900 if not for the extra warranty. This was a great deal!
By Bismarck ND @ 12/30/09 03:35:19 PMreport abuse
extended warrenty
I just wanted you to know that you are not being totally truthfull about the extended warrenty's I bought one for my big screen tv and I was so glad I did. A year out the tv lost sound and after 3 try's fixinf it the company gave me a brand new tv. I would have had to buy a new tv if I had not had the warrenty. So for big ticket items I think you need to protect your investment......
By Ruth Boyle @ 12/30/09 01:58:58 PMreport abuse
Extended Warr on Washer/Dryer
I listen to Clark and always turn down the extended warranty when I buy items but I purchased a Fisher Paykel washer & TOP LOADING DRYER from Lowes. Lowes doesn't sell them anymore, probably due to the high repair costs, but I love this dryer. We paid Lowes to deliver and install them. Soon after that they had to come back because something was dented when they installed it so the drum couldn't rotate properly. It was an independent person who came out and she told us they repair a lot of this brand because of the computerized board. We went back to Lowes 2 months after we bought the washer/dryer and convinced a manager to allow us to buy the extended warr. I think it was the only time someone had begged him to allow them to buy the ext. warr. We are so grateful he sold us that warr. It cost us 139.00 total to cover both appliances. Repair companies have been out several times for both items. Last Wed. we were told it would have cost us over 300.00 if we were paying out of pocket. Our 4 year ext warr will expire 07/10 and I know after that we will have to ditch the dryer when it breaks again. I hope they invent another top loading dryer before I need a new one because it's so much easier to unload the clothes! Even after all of this I would still buy this dryer but I would also buy the ext warr.
You can't just go to a parts store and get a new thermostat because it's all tied into the computer board so you have to buy the computer board from the mfg. The repair person said that the high cost was for the part. My husband has always repaired our appliances but now that they are computerized, he can't repair them and even so if the part costs 200-300.00 it isn't worth it. So the next one we buy won't be computerized but if that's all they make, we for sure will buy the extended warr. plus any time we buy expensive items we use a credit card that will double the mfg warr.
We never buy the extended warr. for electronics.
By Susan @ 12/29/09 09:10:45 AMreport abuse
Abusing Moore
I have to agree with Medical Student that this story misrepresents Moore's Law. Please correct this for the sake of readers.
By Bridget @ 12/28/09 08:09:37 PMreport abuse
Warranties are nothing but a cash cow for the companies selling them. I've never bought one. I just do my homework before I buy a piece of electronic equipment, and get one that has a good reliability record.
By Shawn @ 12/28/09 10:35:20 AMreport abuse
Warrenties
I have purchased warrenties on multiple electronics (GPS, Computers, Hard drives, etc. My wife is hard on these things and every warrenty has paid for itself plus. I have used warrenties on about five different items now and each item has been upgraded to a large extent from what I started with, one thing I have learned is if I buy something make sure it has at least one unique aspect and when it is time to repair/replace then they must at least match those aspects that are included, which has allowed the upgrades. So yes it can pay off. Latest example was a GPS I purchased a year ago for 159.00, the replacement cost 279.00 on the sales market.
By Patrick @ 12/28/09 05:31:52 AMreport abuse
Warranties
Not all warranties are bad. After two years our flat screen had no sound. Called, sent it back at their cost. They sent us a new flat screen. Sometimes it pays off. Vicki Ohio
By Vicki Brand @ 12/25/09 10:20:41 PMreport abuse
Extended warranties
I'm sorry but i have to disagree in some ways with you on this issue. If you buy high quality pcs, not pre-built Dells, etc. they hold their value for a much longer time & a warranty on my high end pc has saved me a couple times in a big way. I also disagree with lcd tvs, they can hold value as well as long as you are purchasing the best tvs available at the time. I've resold lcds there were used by me for a couple years & got everything bit of money out of them that i could have hoped for. Craigslist is a beautiful thing. & buying a warranty for a tv depends on where you buy it from. Would i buy one from BB? No. Would i buy one from Sams, absolutely, because simply by purchasing your membership to an advancded membership they give you a free year of warranty, so you get 3 years warranty for the price of $60. Well worth it.
By Jim Jackson @ 12/25/09 07:37:45 AMreport abuse
Computer/Auto Extended Warranty
For those buying an expensive Mac (may be redundant) I recommend an extended warranty since the tech support is only 90 days and the other stuff is a year. I've had two Macs and both required Expensive repairs in the 1-2 year age. For autos, I suggest getting an extended warranty on your new Mercedes. Mine seems to break down while resting the garage.
By ErnestoGonzalez @ 12/20/09 04:31:57 PMreport abuse
Misquote
Moore's Law does not state computers become obsolete after 18 months. His law states that the number/density of transistors on a chip will double every 18 months (or 1 year or 2 years, depending on which source you like), at the minimum cost. While this roughly translates into performance, increase it doesn't necessarily mean the previous chip is obsolete. Please don't try to sell it as something it's not. You know, kind of like those rip-off extended warranties? :)

That said, I emphatically agree most extended warranties are useless!
By Medical Student @ 12/19/09 09:21:40 PMreport abuse
Sony Style extended warranty on Sony HDTV
I saw on Sony Style I could buy an extended service agreement which would "extend my original Sony warranty for the period purchased". I paid $1400 for the HDTV and got five years for $149. I figured for five years of "original Sony warranty coverage" that was not a bad price. After I received the "official" paperwork, I found if my repair costs totalled the original purchase price, my extended service contract was OVER. In other words, if I have $1400 in repairs the first year of the contract, the "five year extended service contract" is totally fulfilled and I am out of luck for the next three years. I emailed Sony Style saying this was misrepresentation on their part, but never received a reply. BE SURE to read the "terms and conditions" on ANY extended service contract before you put down the cash! I'm very unhappy with Sony and will never buy another Sony product again.
By R. Sivert @ 12/19/09 05:04:00 PMreport abuse
Car Warranties
A few years ago when I bought a used car from Gwinnett Place Ford, I considered Clark's neutral position, and went ahead and bought the warranty. Problem is, the repairs aren't covered unless done at the dealership. I had a problem with my power window motor a couple months after I bought the car. I went to the dealer and asked if the repair would be covered. They told me they wouldn't know until after they diagnosed the problem. They charged me $100 to diagnose the problem, tell me it wasn't covered under the warranty, and that it would cost $350 to fix. I can live with the repair not being covered, I'm upset that they charged me $100. to tell me. I'm not mad at Clark for his neutrality, I', mad at Gwinnett place Ford. They didn't do my repair for me, and they'll never sell me another car.
By Rick @ 12/19/09 09:29:25 AMreport abuse
WARRANTIES
....I never buy them....on washers/dryers..I throw them away at 5 years....think about it....if they break after 5 years....the repair characters will yank you $100 or more for the smallest repair job....a $5 part...you then have a ripoff repair, and all other old, used parts. Trash it, and buy new each 5 years. Repairs will drain your wallet, stoves can last 18 years, I trash refrigerators at 8 years, as Consumer Reports advises.
By CONSUMER WARRIOR @ 12/18/09 02:51:10 PMreport abuse
Warranty this but not that, simple.
To thindery below, just search the Clark site about warranties for appliances, it's here somewhere. You can also listen to the archives of Clarks show here, look before you speak.

As for warranties, it's fairly simple to decide what to cover. Almost NOTHING. The only warranty I have bought of late is for my two computer chairs which are heavily used by 3-4 people. They were each $79 on sale, marked down from $179, and for an extra $24 I get 3 years of in-home service if they break or fail somehow, being both chairs are rated for 175lbs people and me being 230 it seemed like a good idea, and just 6 months in I have already taken advantage of this warranty when one of the arm rests adjustments failed after I leaned on it too hard. I would take advantage of any in-home service warranty on items like a big screen tv or any other large appliance that you paid a pretty for and plan to keep for 5+ years. Read the warranty an decide. As for these newer cheaper laptops, being a good percentage fail somehow in the first 6 months of use an in-store warranty wouldn't be a bad idea. Never add on a warranty to your auto if your auto is over 5 years old, most are bogus or worthless.
By Chris @ 12/18/09 01:11:48 PMreport abuse
What about large home appliances?
He doesn't say anything about a fridge or washer and dryer. You don't plan on buying those things every 3 or 4 years. I really wish he would write in better detail. Not everyone is able to listen to the show every day of the week.
By thindery @ 12/18/09 11:24:34 AMreport abuse

Extended Warranties

The only time I purchase an extended warranty is for big ticket items: cars, large appliances anything where repairs could be costly. Once I purchased a landline phone at Best Buy for $12 and they wanted to sell me an extended warranty. Are you serious? I just laughed and said no thank you. I wonder if anyone would purchase a warranty for a "disposable" product?

By Jean @ 01/26/10 02:15:39 PMreport abuse

I agree with Clark! On electronics, I buy from Costco & get another yr. for free! Granted, the selection is not as varied but price & service mean so much more. Got daughter a 42" flat screen that went out 13 months later. Manufacturer didn't even make TV's anymore so Costco had her come to store & pick out a new one for same price!! Free extra year saved me buying her a new TV. Same with computers-bought all our laptops there. They repair & replace with no hassle.

By J. Reeves @ 01/13/10 12:59:45 PMreport abuse

Extend warranty - Use Amex

I always pay for electronics and appliances with American Express. This extends the manufacturers waranty by a year. I'v used this coverage on a clothes dryer that died one month out of warrantee.

By Don @ 01/11/10 03:19:06 PMreport abuse

Apple Extended Care

I bought an iMac when they first went to the new thin line 5 years ago I had heard that they had trouble with heat so I bought the AppleCare plan for $125.00, 2 years later after many problems with overheating all repaired free, it still wasn't running properly I called Apple and they saw the many problems and said we're sending you a brand new iMac, not bad for $125.oo

By Mr. Bill @ 01/08/10 02:59:49 PMreport abuse

HDTV Warranty WORTH IT!

Exactly one year after purchasing my HDTV it died. Luckily, I had spent the 98 bucks for the extended warranty and got it fixed for free. The thing is,, the HDTV is still such new technology that things still are not quite ironed out yet. My friend, a cable installer, says he sees this all the time with HDTV's. So, hey, spend the extra bucks for the warranty, hey, it's better than having to go out and pay another 700 bucks for a new one!

Or, maybe this is just going to be the nature of HDTV's, where you will have to buy a new one every few years, much like we do with computers!

By Dennbert @ 01/04/10 10:47:31 PMreport abuse

Maybe for expensive purchases

I bought a 52" rear projection DLP TV right before the technology changed to Plasma, etc. It was $3400. The Sears guy sold me on the protection plan because it covered the $120 light bulb that had to be replaced every 2000 hours. I had troubles with the set as soon as the manufacturers warranty expired. It took them 5 in home service calls before they finally replaced the entire chassis. I could have never afforded the repairs otherwise. TV is still going strong 5 years later (and I got the bulb replaced twice making the whole warranty investment a no-brainer.

By Jonathan @ 01/04/10 01:27:04 PMreport abuse

Exxceptions to Mr. Howard

Sorry, Clark, but this is one of the two areas on which we differ. (The other is satellite TV providers vs. cable which, though cheaper, are SO much more trouble to deal with). Back on topic: I use Mac computers, and wouldn't consider owning one without (the rather costly) Applecare. Since my 8100 back in, what, 1986 or so? I've NEVER failed to need it. Despite their customer satisfaction rating, Macs seem to be good for 3-1/2 to 4 years, but often need major repairs before then. In the last 2 months, 3 of my 4 Macs have been in the shop, including an iMac less than a year old and getting a new logic board. I factor it into the admittedly high price of the computer. Insurance is always a personal choice between cost and security. If you can afford repairs, you don't need it, and can gamble on the device's reliability. When I buy a large screen TV, I'll certainly be purchasing the extended warranty, statistics aside. Thanks for all you do, Clark.

By Bobbo @ 01/04/10 12:56:47 PMreport abuse

Dell monitor

We do not buy waranties. Generally, a good idea if the product is reliable. Bought a Dell computer/monitor Dec.2008. The monitor died app. 20 days after the original warranty expired. We called Dell to report the problem in hopes it was something fixable. They said they could not even do a phone diagnosis unless we paid $50. After complaining and asking for the supervisor, he gave us one piece of advice and then declared the monitor dead.
One of the reasons for buying a Dell was the so-called reputation of dependable products - never dreaming anything would die after one year, 3 weeks. We have owned computers for 20 years and never before had a monitor with any problem at all--none of the others were Dell. I shall not rec. DELL to anyone else. (They were not even friendly or sympathetic.)i.lipford

By i. lipford @ 01/01/10 11:29:50 AMreport abuse

Extended Protection Plans

I'm a manager at Staples. I've been a customer service manager for at least two years. It is true that the price of extended protection plans makes us money, but the majority of retailers use 3rd party insurance companies. Say we make 40% profit on a protection plan, the rest is invested into an insurance company that works just like your car insurance. When they're given a claim they're first option is always repair, because that's cheaper, if that doesn't work we replace it with a refurb, if you do not want a refurb or if your refurb breaks or is defective, we give you the amount you paid for the computer. I always buy extended protection plans and it pays off. Yes, some things don't break, but the things that do are worth the insurance 100% of the time.
Laptops, Printers, GPS Units, and Digital Cameras are the most likely things in the electronics business to break. For the price of repairs or replacement it's worth your investments.
I hate watching people buying computers without the protection plans because sure enough a year later something happens and they have to either pay repair fees out the wazoo, which believe it or not are much more profitable to retailers like Staples Easy Tech, or Best Buy Geek Squad, than the insurance.
Clark Howard, you are very smart, but in this case, you are wrong.

By Erick Hagen @ 12/30/09 05:35:33 PMreport abuse

extended warranties are a good deal!

I bought a $3400 tv three years ago. After the second year it broke and it would have cost me over $900 if not for the extra warranty. This was a great deal!

By Bismarck ND @ 12/30/09 03:35:19 PMreport abuse

extended warrenty

I just wanted you to know that you are not being totally truthfull about the extended warrenty's I bought one for my big screen tv and I was so glad I did. A year out the tv lost sound and after 3 try's fixinf it the company gave me a brand new tv. I would have had to buy a new tv if I had not had the warrenty. So for big ticket items I think you need to protect your investment......

By Ruth Boyle @ 12/30/09 01:58:58 PMreport abuse

Extended Warr on Washer/Dryer

I listen to Clark and always turn down the extended warranty when I buy items but I purchased a Fisher Paykel washer & TOP LOADING DRYER from Lowes. Lowes doesn't sell them anymore, probably due to the high repair costs, but I love this dryer. We paid Lowes to deliver and install them. Soon after that they had to come back because something was dented when they installed it so the drum couldn't rotate properly. It was an independent person who came out and she told us they repair a lot of this brand because of the computerized board. We went back to Lowes 2 months after we bought the washer/dryer and convinced a manager to allow us to buy the extended warr. I think it was the only time someone had begged him to allow them to buy the ext. warr. We are so grateful he sold us that warr. It cost us 139.00 total to cover both appliances. Repair companies have been out several times for both items. Last Wed. we were told it would have cost us over 300.00 if we were paying out of pocket. Our 4 year ext warr will expire 07/10 and I know after that we will have to ditch the dryer when it breaks again. I hope they invent another top loading dryer before I need a new one because it's so much easier to unload the clothes! Even after all of this I would still buy this dryer but I would also buy the ext warr.
You can't just go to a parts store and get a new thermostat because it's all tied into the computer board so you have to buy the computer board from the mfg. The repair person said that the high cost was for the part. My husband has always repaired our appliances but now that they are computerized, he can't repair them and even so if the part costs 200-300.00 it isn't worth it. So the next one we buy won't be computerized but if that's all they make, we for sure will buy the extended warr. plus any time we buy expensive items we use a credit card that will double the mfg warr.
We never buy the extended warr. for electronics.

By Susan @ 12/29/09 09:10:45 AMreport abuse

Abusing Moore

I have to agree with Medical Student that this story misrepresents Moore's Law. Please correct this for the sake of readers.

By Bridget @ 12/28/09 08:09:37 PMreport abuse

Warranties are nothing but a cash cow for the companies selling them. I've never bought one. I just do my homework before I buy a piece of electronic equipment, and get one that has a good reliability record.

By Shawn @ 12/28/09 10:35:20 AMreport abuse

Warrenties

I have purchased warrenties on multiple electronics (GPS, Computers, Hard drives, etc. My wife is hard on these things and every warrenty has paid for itself plus. I have used warrenties on about five different items now and each item has been upgraded to a large extent from what I started with, one thing I have learned is if I buy something make sure it has at least one unique aspect and when it is time to repair/replace then they must at least match those aspects that are included, which has allowed the upgrades. So yes it can pay off. Latest example was a GPS I purchased a year ago for 159.00, the replacement cost 279.00 on the sales market.

By Patrick @ 12/28/09 05:31:52 AMreport abuse

Warranties

Not all warranties are bad. After two years our flat screen had no sound. Called, sent it back at their cost. They sent us a new flat screen. Sometimes it pays off. Vicki Ohio

By Vicki Brand @ 12/25/09 10:20:41 PMreport abuse

Extended warranties

I'm sorry but i have to disagree in some ways with you on this issue. If you buy high quality pcs, not pre-built Dells, etc. they hold their value for a much longer time & a warranty on my high end pc has saved me a couple times in a big way. I also disagree with lcd tvs, they can hold value as well as long as you are purchasing the best tvs available at the time. I've resold lcds there were used by me for a couple years & got everything bit of money out of them that i could have hoped for. Craigslist is a beautiful thing. & buying a warranty for a tv depends on where you buy it from. Would i buy one from BB? No. Would i buy one from Sams, absolutely, because simply by purchasing your membership to an advancded membership they give you a free year of warranty, so you get 3 years warranty for the price of $60. Well worth it.

By Jim Jackson @ 12/25/09 07:37:45 AMreport abuse

Computer/Auto Extended Warranty

For those buying an expensive Mac (may be redundant) I recommend an extended warranty since the tech support is only 90 days and the other stuff is a year. I've had two Macs and both required Expensive repairs in the 1-2 year age. For autos, I suggest getting an extended warranty on your new Mercedes. Mine seems to break down while resting the garage.

By ErnestoGonzalez @ 12/20/09 04:31:57 PMreport abuse

Misquote

Moore's Law does not state computers become obsolete after 18 months. His law states that the number/density of transistors on a chip will double every 18 months (or 1 year or 2 years, depending on which source you like), at the minimum cost. While this roughly translates into performance, increase it doesn't necessarily mean the previous chip is obsolete. Please don't try to sell it as something it's not. You know, kind of like those rip-off extended warranties? :)

That said, I emphatically agree most extended warranties are useless!

By Medical Student @ 12/19/09 09:21:40 PMreport abuse

Sony Style extended warranty on Sony HDTV

I saw on Sony Style I could buy an extended service agreement which would "extend my original Sony warranty for the period purchased". I paid $1400 for the HDTV and got five years for $149. I figured for five years of "original Sony warranty coverage" that was not a bad price. After I received the "official" paperwork, I found if my repair costs totalled the original purchase price, my extended service contract was OVER. In other words, if I have $1400 in repairs the first year of the contract, the "five year extended service contract" is totally fulfilled and I am out of luck for the next three years. I emailed Sony Style saying this was misrepresentation on their part, but never received a reply. BE SURE to read the "terms and conditions" on ANY extended service contract before you put down the cash! I'm very unhappy with Sony and will never buy another Sony product again.

By R. Sivert @ 12/19/09 05:04:00 PMreport abuse

Car Warranties

A few years ago when I bought a used car from Gwinnett Place Ford, I considered Clark's neutral position, and went ahead and bought the warranty. Problem is, the repairs aren't covered unless done at the dealership. I had a problem with my power window motor a couple months after I bought the car. I went to the dealer and asked if the repair would be covered. They told me they wouldn't know until after they diagnosed the problem. They charged me $100 to diagnose the problem, tell me it wasn't covered under the warranty, and that it would cost $350 to fix. I can live with the repair not being covered, I'm upset that they charged me $100. to tell me. I'm not mad at Clark for his neutrality, I', mad at Gwinnett place Ford. They didn't do my repair for me, and they'll never sell me another car.

By Rick @ 12/19/09 09:29:25 AMreport abuse

WARRANTIES

....I never buy them....on washers/dryers..I throw them away at 5 years....think about it....if they break after 5 years....the repair characters will yank you $100 or more for the smallest repair job....a $5 part...you then have a ripoff repair, and all other old, used parts. Trash it, and buy new each 5 years. Repairs will drain your wallet, stoves can last 18 years, I trash refrigerators at 8 years, as Consumer Reports advises.

By CONSUMER WARRIOR @ 12/18/09 02:51:10 PMreport abuse

Warranty this but not that, simple.

To thindery below, just search the Clark site about warranties for appliances, it's here somewhere. You can also listen to the archives of Clarks show here, look before you speak.

As for warranties, it's fairly simple to decide what to cover. Almost NOTHING. The only warranty I have bought of late is for my two computer chairs which are heavily used by 3-4 people. They were each $79 on sale, marked down from $179, and for an extra $24 I get 3 years of in-home service if they break or fail somehow, being both chairs are rated for 175lbs people and me being 230 it seemed like a good idea, and just 6 months in I have already taken advantage of this warranty when one of the arm rests adjustments failed after I leaned on it too hard. I would take advantage of any in-home service warranty on items like a big screen tv or any other large appliance that you paid a pretty for and plan to keep for 5+ years. Read the warranty an decide. As for these newer cheaper laptops, being a good percentage fail somehow in the first 6 months of use an in-store warranty wouldn't be a bad idea. Never add on a warranty to your auto if your auto is over 5 years old, most are bogus or worthless.

By Chris @ 12/18/09 01:11:48 PMreport abuse

What about large home appliances?

He doesn't say anything about a fridge or washer and dryer. You don't plan on buying those things every 3 or 4 years. I really wish he would write in better detail. Not everyone is able to listen to the show every day of the week.

By thindery @ 12/18/09 11:24:34 AMreport abuse

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Dec 17, 2009 -- Extended warranty sales are up…despite Clark’s warnings

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