Extended Warranty on new TV - Yes or No? (1 Viewer)

[GregoriusM]

I just bought a new Panasonic 27" GAOO TV for $599 CDN (MSRP $999 up here) and would like people's opinions on buying extra warranty coverage.
The TV has a two year parts and labour (in-house) warranty.
To extend it another two years, which is the maximum they will do, is $89.
Good idea or waste of money?
Thanks!
... Greg
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"It's like music to my ears, but it's like a hurricane to my wallet!!!"

 

[Randy Boecker]

If it's only $89, I'd say do it. I'm looking at over $500 for my RPTV to extend the warranty for 5 years. I had a crt go bad on my set after just 4 months, so in my book, it's worth the extra bucks. My general mode of operation is, if what I buy is over $300, I buy the extended warranty.

 

[Grant]

Generally speaking, extended warranties are a bad deal for the consumer (and almost pure profit for the retailer). I can't comment specifically on RPTVs, but most well-made electronics are either going to break in the first 30 days or will last 10+ years, so you can see how they make their money.
The included 2 year warranty on the Panasonic is actually pretty good (I think the 32" I bought only had one year).
Here's something to try the next time you are being pushed by the salesperson to buy an extended warranty. Say you'll buy the warranty if they lower the price of the TV by the amount of the warranty. The reason this might work is because they usually make a higher commission on the warranty than on the TV. I've heard of this working once but it's never actually worked for me.
Oh, here's something else to keep in mind. Some credit cards (I believe American Express Blue and others) extend the warranty on purchases by one year if you purchase the item with that card. So keep those receipts!

 

[Brett G]

Extended warranties (if they are reasonably priced - $89 for two years seems reasonable) are like insurance. Most likely nothing will happen, but if it does you are sure glad you have it. If you need to get it repaired, it will most likely cost more than $89.
Granted, some extended warranties are just plain ripoffs. Stay away from those. But this seems reasonable. I just ordered a RPTV and bought a 5-yr extended warranty from Philips for $245. Even if I never have to use it, I'm damn glad to have it.
It's all about peace of mind.
-Brett
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My DVD's

 

[Jeremy Little]

I work for Best Buy, and I'll say this. On any tv large enough you want them to come to you on, it is worth considering. Look at the price, though. Some companies after money charge an arm and a leg for it. We just recently lowered the price since we made too much on HDTV Service Plans. We offer 4 years at $299.99 for HDTV monitors, which I couldn't pass up myself. Integrated HDTV sets are only $349. Right now, all we have is the RCA 38" widescreen but all integrated sets will be that price. There are some parts of the country (Oklahoma) where dealing with bad line-doublers and other HD only parts just confuse the he** out of Joe Bob the TV repair man. Having a Lemon policy also kicks butt. If they can't get it right after so many tries, they have to give you a new one. If you are gonna shell out the cash for an extended warranty, make sure what it covers. Ideally, you want in home service, all parts and labor including remotes, a no-lemon policy, and nationwide service. Also, shop around and don't pay more than you have to.

 

[GregoriusM]

I appreciate all of your replies!!!
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"It's like music to my ears, but it's like a hurricane to my wallet!!!"

 

[Ron-P]

I bought a 5 year in home extended warranty for my Mits. 46" 16:9 RPTV I bought 2 weeks ago. It was $349.00. For $69.80/year or $5.82/month or $0.18/day it was justifiable and gives me a comfort buffer as this was the first RPTV I have ever purchased.
I hope I never need it, but if I do, it will pay for itself the first time something happens.
Peace Out~

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http://home.earthlink.net/~peregrinefalcon/

 

[Jeff Leeds]

that said, on a 27" TV I think I'd skip it. They failure rates on a 27" TVs is really small. If in 5 years the tv fails, you could take the $89 towards a new one. Anything 35" and bigger I think you HAVE to get an extended warranty, but I've never bought one for a 27" and have never regretted it.
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Jeff Leeds
[email protected]

 

[Will]

We all know that extended warranties are a bad deal
for the customer. Get them if you need the peace of
mind. As for myself, I'll live with losing a little sleep.
And keeping the cash.
An extended warranty could make sense to me if I couldn't
afford to pay for a repair, on those rare cases I'd need to.
But since I (and chances are you) can afford the repair,
and since the chance of needing a repair is small, it's
cheaper, over the long run, not to buy extended warranties.
Over the long run, you'll save by not buying them.
Stores make LOTS of money selling them.
Anyway, that's my opinion...

 

[DaveF]

Be sure to read the details of the 'extended' warranty before paying for it. There can be gotchas that make it less useful that it first sounds.
- I got the warranty on a VCR once, which included free cleanings. What I failed to realize was that the cleaning was done through the normal in-store service dept, so I had to drop it off for > a week. That was a waste.
- Some warranties run concurrently with the original manufacturer's warranty, so a three yr warranty on a product with a 1 yr is really just a 2 yr warranty.
- Does it provide in-home service? If not, is the work done in town, or is the product shipped to a service center from the store?
- Also, consider, in a few years, what would be the real cost of fixing the TV vs. the cost of taking the warranty cost, adding a bit of interest, and paying the for the fix out of pocket? What would be the cost of buying a new product? (considering price drops for equivalent features)
As with all insurance, you're paying money, in the hopes of never getting your money's worth. It all comes down to your risk tolerance.

 

[GregoriusM]

Risk tolerance is the sum of it all.
I've had the same TV for 11 years, bought new. The rest were hand-me-downs.
This one, however, is a little more sophisticated than the Magnavox I had, so I was asking others based on their having a little more sophisticated TV than a Costco Special!!!
I'm leaning against it. Since my Magnavox is still in reasonably good shape and will be used in the bedroom, and I didn't buy an extended warranty for it, I think I'll put the $89 toward the Kenwood DV-5900M mega changer when it comes out.
Thanks for all the replies and info! I do appreciate it.
... Greg
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"It's like music to my ears, but it's like a hurricane to my wallet!!!"