Sunday, March 29th 2015

Spending on Warranty to Save Money

by Mr Credit Card

Two years ago, I bought a JVC DILA Rear Projection TV from Best Buy. The TV was 50 inches diagonally and I was very pleased with it. At the time of the purchase, I was offered a four year warranty by Best Buy which cost me about $400. To be honest, I was hesitant to cough up so much just for the warranty. The manufacturer (as I was told) only gave a one year warranty.

But I still decided to take it up anyway (just in case). Every thing was OK with the TV until last week when it just went blank with a buzz sound! I gave a call to Best Buy and within a few days, the repairman came and fixed the JVC. I was told that one of the bulbs was broken and it had to be replaced. Without any warranties, this would have cost me $500! Hence, I guess that paying upfront for that four year warranty did save me some money.

Not too long ago, I had another appliance break down. This time, it was the new dryer I had bought from Sears. Apparantly, the sensors was broken and the dryer kept on going without stopping! Once again, I had paid for the warranty and everything was fixed with no extra cost.

I kind of sense that today’s appliances and gadgets (unlike the old TV tube) was made to last only about three years and manufacturers expect consumers to replace them the moment a new model is introduced. I do not know about you but I tend to keep my gadgets and appliances for a very long time. But because today’s products aren’t really made to last, I think paying up for extra warranty makes sense. I was very tempted not to do that because I charge all my expenses to my Blue Cash from American Express. Amex cards extend your manufacturers warranty for one extra year from the time the manufacturers warranty ends. However, I wanted a longer warranty and so I paid up for it.

My advice to those who new appliances is to pay for the warranty. Given that stuff produced today aren’t made to last a lifetime, you will almost end up with some hefty repair cost sooner or later. Paying up for a warranty now has saved me lots of money and I suspect it will save you money as well

One Response to “Spending on Warranty to Save Money”

  1. Tim Says:

    i completely disagree. although you have used the ext. warranty, for the majority you will never need to use them. these warranties are largely a waste of money. the stores know this and that is why they push them hard. they are a stores big money maker. plus, not all store extended warranties are the same, so read the fine print. you might have to endure bringing it back several times before getting a replacement.

    i do recommend, however, ext warranties on computers simply b/c of the depreciation on computers and the cheap cost of getting ext warranties in relationship to replacing a computer.

    you should have checked with your credit card company (if you had purchased the tv on credit card) to see about their extended warranty policies. at two years, i figure that your credit card company would have covered it.

    this also leads to another point. There are plenty of electronics and appliances out there that may cost a little more but have longer warranty periods. Instead of buying an extended warranty, get the better thing with the already included longer warranty.

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