4 Ways to Beat Extended Warranties

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Can we stop calling them "extended warranties" a warranty express or implied is something included in the purchase price. These are service contracts and referring to them otherwise adds legitimacy to these high pressure add-ons.
Source:
http://www.ftc.gov/bcp/edu/pubs/consumer/products/pro17.shtm

Daniel Berend of AZ 6:07AM August 31, 2012

The comment of a 10 year warranty on a washer and dryer for $199 is ridiculous. In reality you are going to pay way more than $199 for a 10 year warranty which certainly affects whether or not it makes sense. Personally I do not buy them.

snich of TX 8:28AM April 30, 2012

I have never purchased an extended warranty. They are usually grossly overpriced. I had a friend purchase an extended warranty from the dealer on a new car and 1 month later received an offer to purchase the same warranty from the manufacturer for $300 less. He brought the offer into the dealer and asked why their warranty was $300 more and they just gave him a check for $300. If you feel the need to purchase a car warranty, the price can be negotiated. I have also been offered an extended warranty on appliances when the mfg. warranty is expiring. If you register your appliances when you purchase them they will contact you to extend the warranty. These warranties are usually cheaper then the ones that are offered at the register, but I do not think these are a prudent purchase either.

jms of IL 8:26AM April 30, 2012

I disagree with not buying extended warranties on some items, especially, large items like washer/dryer sets and CARS!
My warranty on 2010 BMW will expire 11/30/13 or 40,000 miles whichever comes first. I plan to purchase an extended warranty which will only start when this one runs out...not before. It's a platinum plan and covers everything as I have Navigation which is not covered by many of the other plans available. I believe this would be worth the money as anything that goes wrong on these cars are usually very expensive. Do you agree?

Curley of IL 7:30AM April 30, 2012

I absoluely agree with the author about extended warranties. When I purchased a new car, I was persuade and bought an extended warranty - 7 years. When something had to be done in the car - it was not covered.
I work with children. I bought an iPad for them to play as a reinforcer. I bought an extended warranty, because little children can break an iPad. I think I did the right thing with an iPad.

Julia of NY 7:23AM April 30, 2012

Firstly the myth that extended warranties a waste of money because new products will usually break down in the first year is the norm are WRONG! it is a fact that most consumer products of any quality will break down in the 3rd year is more accurate. Granted if your going to buy a Blue ray player for $149 and the salesperson wants to sell you a 5 year extended service for $99 dollars does Not make sense. Its better to go out and buy a brand new one. However if your going to buy a Washer and Dryer set for $1999. and the sales person wants you to buy a 10 year extended service on the product for $199.00 that cover the units parts that are only covered for 1-3 years makes a lot of sense. in because if you have ever called a service repair person for major appliances you would have to take a second mortgage to pay the the guy.
So do not dismiss extended service out of hand. they can be a life saver.
and these financial advisers that give you this advice ,are the same guys that caused the economic collapse ...So you be the judge.

philip 6:23PM April 29, 2012

The cost of extended warranties is ridiculously high and at least 40% of it is commission for the seller. Only fools but this coverage, it's like placing a bet
that your item will fail within the coverage term. Even if it does, what's wrong with taking your lumps IF that happens rather than paying for it in advance?? Fear is the motivator with all insurance, if U have enough faith in the product to buy it in the first place, it's not a huge leap to believe it will work.

b sept of MT 1:23PM April 29, 2012

@Damon
This "know it all" is providing factual information ... MOST people will not use or take advantage of an extended warrenty (if they did, companies would not continue to offer them) and the manufactures warrenty is usually good enough. Of course there will exceptions, there are problems in ALL manufacturing processes but USUALLY the problem will present itself early .. or too late.
I used to sell computers at CompUSA back in the day, my commisions for selling a warrenty was rediculous, I made tons of money off of 1 warrenty and the company still made out like bandits ...

Shawn of NY 10:03AM April 27, 2012

Obviously you have plenty of money and savings is no issue. I have tried your method and when my appliance broke ,I had used that savings to pay other more pressing bills. So your theory doesn't work for everyone!
While the cost of these plans may profit retailers....I can tell you I work for one and the warranty has save the customer lots of money compared to repairs . I'm not on commission and I hate buying warranties as much as the next person, but through my experiences I would have been much better off buying the warranty than paying the repair bills and or replacing the item.....and the retailer I work for has no problem honoring the warranty....where do you so called know it alls get your information?

Damon of GA 2:37PM July 30, 2010