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Author Topic: Five Reasons Not To Buy An Extended Warranty Back to Topics
GasPasserAB
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Edmonton

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Message Posted: Nov 17, 2012 1:57:53 PM

When you're buying a car, a home or an appliance, more than likely you'll be pressured to buy a service contract, or "extended warranty," as part of the purchase. The warranty, you'll be told, covers repairs not covered by the manufacturer's warranty, or will extend coverage after the manufacturer's warranty expires.

But is this really true?

Are extended warranties a good buy? Companies selling them insist that they are, claiming they save consumers hundreds, even thousands, of dollars in costly repairs. But consumers filing complaints with ConsumerAffairs.com tell a different story.

Judging from the seemingly countless complaints we've received, there are five good reasons why consumers shouldn't buy the extended warranty.

1. They Usually Cost More Than They're Worth

"I went to Offi
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REPLIES (newest first) Post a Reply
TheRedFez
Veteran Author Las Vegas

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Message Posted: Nov 22, 2012 6:09:04 PM

Worthwhile advice.
LetemEatCake
Champion Author Oklahoma City

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Message Posted: Nov 19, 2012 9:50:20 PM


Excellent article! Thanks for posting GasPasserAB!
DanMtz
Champion Author Oakland

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Message Posted: Nov 19, 2012 8:08:34 PM

Everyone should know this.
Snowchoux
Champion Author Missouri

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Message Posted: Nov 19, 2012 10:40:21 AM

They cover part of your regular warranty. I don't like to pay twice.
eschroth442
Champion Author Cleveland

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Message Posted: Nov 19, 2012 10:27:32 AM

not worjth the paper they are printed on.
Sneakers55
Champion Author Houston

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Message Posted: Nov 19, 2012 6:50:08 AM

I'm glad I got AppleCare+ on my iPhone 4S. I've used both incidents of accidental damage repair and could use a third. I'm going to get it on my next iPad as my BFF damaged one of my old ones.
Bonanza
Champion Author Boston

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Message Posted: Nov 19, 2012 5:33:26 AM

Never bought one
heydano67
Champion Author California

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Message Posted: Nov 19, 2012 4:56:49 AM

You need to judge for yourself if the price would be worth it, based on your past experience with whatever you're buying it for.
millerin
Champion Author Orlando

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Message Posted: Nov 19, 2012 12:56:33 AM

hmm...
greatartiste
Champion Author New Jersey

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Message Posted: Nov 19, 2012 12:34:24 AM

I will never buy one again on a car or electronics...
MAC48
Champion Author Dallas

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Message Posted: Nov 18, 2012 10:05:52 PM

Extended warranties only make sense for very expensive acquisitions such as a new or manufacturer certified used automobile. The number one rule of thumb is do not buy an extended warranty from any entity that is not the original equipment manufacturer and only if that manufacturer is a large corporate entity that has been around for many years and expects to be around for many more years. For example, if you buy a Ford pickup, van or car only buy an extended warranty that is sold by the Ford Motor Company itself.

Do not ever buy an extended warranty form any company that is only in the business of selling and servicing the extended warranties that they sell or from any retailer to include non-OEM extended warranties sold by car dealerships.
lesndave
Champion Author Texas

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Message Posted: Nov 18, 2012 9:59:56 PM

Just don't do it
exyouen
Veteran Author Philadelphia

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Message Posted: Nov 18, 2012 9:16:57 PM

they wouldnt offer it to you if they didnt make money off of it
springer03
Champion Author Raleigh

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Message Posted: Nov 18, 2012 5:32:18 PM

Most are
TruthMatters
Champion Author New Jersey

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Message Posted: Nov 18, 2012 5:29:39 PM

I don't need five reasons to not buy. I just know it is something that is not needed at all!
leraar2
Champion Author Massachusetts

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Message Posted: Nov 18, 2012 2:36:29 PM

the usual ripoff.
Skunk63
Champion Author Phoenix

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Message Posted: Nov 18, 2012 12:33:41 PM

Ripoff.
WalkingWV
Champion Author West Virginia

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Message Posted: Nov 18, 2012 12:17:23 PM

I never buy those things either.
The_DR
Champion Author New Jersey

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Message Posted: Nov 18, 2012 12:06:48 PM

I never buy those things.
eomc17
Champion Author Tucson

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Message Posted: Nov 18, 2012 9:58:16 AM

The scammers are out for your dollars. I never liked "extended warrantees" anyway.
bwatchingu
Champion Author Arkansas

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Message Posted: Nov 18, 2012 9:32:57 AM

interesting
oilfreak
All-Star Author Houston

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Message Posted: Nov 18, 2012 9:11:16 AM

Extended warranties only work on certain items.
derKraut
Champion Author Ontario

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Message Posted: Nov 18, 2012 8:44:48 AM

I buy the extended warranty ONLY from the dealer.
EvergreenON
Champion Author Ontario

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Message Posted: Nov 18, 2012 8:39:18 AM

Still the same
benjy
Champion Author Chicago

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Message Posted: Nov 18, 2012 8:28:37 AM

so true...
blupupher
Champion Author Houston

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Message Posted: Nov 18, 2012 8:26:12 AM

old story but still a good reminder about auto warranties.
greatartiste
Champion Author New Jersey

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Message Posted: Nov 18, 2012 8:11:19 AM

This story is from 2005! WTF?
Straitliner
Champion Author Illinois

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Message Posted: Nov 18, 2012 7:44:12 AM

It depends on what you are buying.
altonb1
Champion Author Pennsylvania

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Message Posted: Nov 18, 2012 7:36:19 AM

I have purchases extended warranties on my laptops--and they have paid off. I have 2 laptops in my household that had accidental damage--and they were paid out at full value. I highly recommend anyone interested in a warranty check out squaretrade.com. My warranty cost about $60 and paid out $300 (the total cost of my laptop--on sale) so it was well worth it. Especially since the damage was caused by my daughter spilling a drink on it about 2 months after purchase.
medic6133
Champion Author New York

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Message Posted: Nov 18, 2012 7:27:42 AM

Essentially: read the fine print & research both the product and the warranty before plunking down the extra cash.
BBopp
Champion Author Dayton

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Message Posted: Nov 18, 2012 7:23:38 AM

I have always felt that if a product is decent, an extended warranty/service contract is unnecessary. This was a very good article and I hope those that read it, think long and hard before purchasing an extended warranty.
FPLREP
Champion Author Virginia

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Message Posted: Nov 18, 2012 6:50:08 AM

If I do not have enough faith in the product that I feel the need to buy an extended warranty, then I do not need the product.
werich44
Champion Author California

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Message Posted: Nov 18, 2012 6:29:03 AM

I had an extended warranty that actually saved me money. But I don't believe that is the norm.
flyank
Veteran Author Miami

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Message Posted: Nov 18, 2012 6:26:07 AM

Never did get one.
skippypa
Champion Author Hawaii

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Message Posted: Nov 18, 2012 6:11:18 AM

Ok
angel4me
Champion Author San Jose

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Message Posted: Nov 18, 2012 4:04:55 AM

maybe on foreign cars........
GasHunter0007
Veteran Author California

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Message Posted: Nov 18, 2012 2:39:22 AM

If it's a car - get a reliable, dependable car that comes with a good warranty in the first place. Then, you don't need the extended warranty.
gumbyrex
Champion Author Fresno

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Message Posted: Nov 18, 2012 1:45:00 AM

Extended warranties are a money maker for the company selling the product. I have never purchased one and with 20-20 hindsight I don't regret it.
bston
Champion Author Oklahoma City

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Message Posted: Nov 18, 2012 1:16:56 AM

Extended warranties are a money making scheme!
Melinda205
Champion Author Alabama

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Message Posted: Nov 18, 2012 1:10:42 AM

Okay
kkimes
Champion Author Illinois

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Message Posted: Nov 18, 2012 1:02:18 AM

Of course, people could say the same thing about health insurance. You could pay into it all you life and not need it until the very end. So it boils down to the question "how much is peace of mind worth"?

I bought it for our 2012 Toyota Camry Hybrid. But then I'm planning to keep it as long as I'm around so I think it will be worth it to me.
Amplion
Champion Author Oregon

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Message Posted: Nov 18, 2012 12:51:36 AM

IF YOU THINK THAT YOU NEED AN EXTENDED WARRANTY, THEN YOU KNOW THAT YOU JUST BOUGHT THE WRONG BRAND AUTOMOBILE !!!!!
millerin
Champion Author Orlando

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Message Posted: Nov 18, 2012 12:35:51 AM

great
danindenver
Champion Author Denver

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Message Posted: Nov 18, 2012 12:19:26 AM

When I got to the part about Circuit City, I checked the date and found that this article is from 2005.

Aren't there any more recent articles I could waste my time reading?

Blue_Cruzer
Champion Author Lexington

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Message Posted: Nov 18, 2012 12:19:14 AM

Interesting.
MrLefty0706
Champion Author Chicago

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Message Posted: Nov 18, 2012 12:14:34 AM

Good advice. Thanks for sharing.
7SPEEDY7
Champion Author Flint

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Message Posted: Nov 18, 2012 12:12:39 AM

So TRUE!!!
lesndave
Champion Author Texas

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Message Posted: Nov 18, 2012 12:11:11 AM

Good article. Sometimes they're worth it, but you have to be really careful.
N5EXY
Champion Author Austin

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Message Posted: Nov 18, 2012 12:09:34 AM

About the only time I even consider an extended warranty is if I buy a "refurbished" unit and the refurb must be at a substantial savings, or, something that I don't expect to use very much or very long. I suppose it would affect gas prices but I never heard of extended warranty on a gallon of gasoline.

[Edited by: N5EXY at 11/18/2012 12:12:00 AM EST]
rahcat
Champion Author Grand Rapids

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Message Posted: Nov 18, 2012 12:03:55 AM

Interesting
Discovery02
Champion Author Colorado Springs

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Message Posted: Nov 18, 2012 12:03:30 AM

Useful information to read.
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