Stereo systems, home theaters and big-screen TV sets are expensive. And if they break down, they can be expensive to repair.
So it’s tempting to buy an extended warranty to cover repairs beyond the scope of the manufacturer’s warranty that comes with the product. Is it worth it?
Rosie recommends against extended warranties in general because it’s rare that you get your money’s worth from them. In fact, the reason why salespeople push warranties so hard is that they’re so profitable to the dealers who sell them. That’s because it’s unlikely you will need the coverage.
If you’re still thinking about buying an extended warranty for your new home electronics, know what you’re getting. Here’s a checklist to consider:
- Does the product have moving parts? DVD players and computers have delicate moving parts and can be expensive to repair. Before you buy an extended warranty, get online and shop around for prices for repairing or replacing your device. How does that stack up against the price of the extra warranty? If your device doesn’t have moving parts, it probably will be cheaper for you to pay for repairs or buy a new one than to buy an extended warranty.
- How long do you expect to own the product? If you replace your desktop or laptop computer every couple of years to take advantage of the latest technology, the standard manufacturer’s warranty that comes with the product should be enough. If you keep your equipment until it turns into a dinosaur, you might like to have a lengthy warranty in case something goes wrong in the future—but again, it’s usually not necessary.
- Does the warranty cover unexpected problems that occur with new technology? Flat-screen TVs and desktop computers had a lot of problems the first year or two they were on the market, including unsightly “burn-in”—images that burn themselves onto the screen if you don’t turn it off for a long time. That wasn’t mentioned in the warranties—so in a lot of cases, the consumer didn’t get reimbursed for solving that problem.
- Will the warranty pay for in-home service? It’s no fun hauling a 50-inch TV to a repair shop. If your item is heavy or has to be installed in your home—like a wall-mounted flat-screen TV, don’t buy a warranty that makes you tear it apart to bring it to a tech. You could damage the TV further—and your warranty won’t cover damage you inflict yourself.
- How reliable and durable is the product? Electronic accessories like speakers, amplifiers and receivers have a good history of holding up well. In fact, most of the problems consumers have with them are defects that show up soon after the purchase and are covered by the manufacturer’s warranty. If they break later on, you’ll probably pay less to replace them than you would on an extended warranty. Don’t spend your money on extended warranties for these products.
