Comments on: Take Advantage Of Manufacturer’s Warranties, But Don’t Buy Extended Warranties

By: 107 Things That Make Good Financial Cents | Good Financial Cents -Jeff Rose Certified Financial Planner and Investment Advisor, Carbondale, Illinois

Mon, 15 Jun 2009 14:45:17 +0000

[...] Away From Extended Warranties. When buying things don’t buy extended warranties, but don’t forget to take advantage of free manufacturer’s [...]

By: 9 Smart Holiday Shopping Tips : Moolanomy

9 Smart Holiday Shopping Tips : Moolanomy — Fri, 26 Dec 2008 05:01:53 +0000

[...] Pete at Bible Money Matters wrote a long article about how he took advantage of manufacturer’s warranties and why extended warranties should be avoid…. [...]

By: It’s a Labor Day Carnival of Debt Reduction | Mighty Bargain Hunter

It’s a Labor Day Carnival of Debt Reduction | Mighty Bargain Hunter — Mon, 01 Sep 2008 05:03:03 +0000

[...] Money Matters reminds us to take advantage of warranties if our stuff goes bad, but maybe not so far as to buy more warranty. (Basically, if it’s [...]

By: Garage Sale Success Edition: PrimeTime QuickHits | Prime Time Money

Garage Sale Success Edition: PrimeTime QuickHits | Prime Time Money — Mon, 18 Aug 2008 23:38:47 +0000

[...] Take advantage of manufacturer’s warranties, but don’t buy extended warranties @ Bible Money Matters [...]

By: Monday Roundup and Cruise Preparation! | Bible Money Matters

Monday Roundup and Cruise Preparation! | Bible Money Matters — Mon, 18 Aug 2008 15:03:58 +0000

[...] Take advantage of manufacturer’s warranties, but don’t buy extended warranties: I talk about my experiences using warranties, and NOT buying extended warranties. [...]

By: Sam

Sam — Thu, 14 Aug 2008 14:31:29 +0000

Here’s the problem with extended warranties. When you buy an extended warranty, you not only have to pay the cost to insure the item, but you also have to pay for marketing cost, a commission to the sales person, and additional profit margin for the issuer. Consumer reports even tells us that about 85% of the money we pay for an extended warranty goes to commissions and profit for the issuer, only 15% of the money you pay in is going toward the cost of insurance. In essence, you are paying six times the amount of the average amount of repairs the device or item you have purchased you need. It just doesn’t make sense mathematically.

Sam
Fix My Personal Finance
http://fixmypersonalfinance.com

Sams last blog post..Buying Auto Insurance

By: Peter

Peter — Wed, 13 Aug 2008 16:13:56 +0000

Good point on the credit cards extending your warranty – definitely something everyone should check out! After checking into it tonight, I found that my credit card DOES have warranty extension available. Also, i found that items that are stolen within 90 days of being purchased might also be covered by the credit card as long as you have a police report. Wish I had known that before!

By: No Debt Plan

No Debt Plan — Wed, 13 Aug 2008 15:47:12 +0000

Additionally, if you use a credit card it may extend your manufacturer’s warranty an additional year. For example, my AMEX Blue Cash automatically extends the warranty an additional year. Kind of cool, but you’ve got to remember to keep up with the information.

By: Jeff@MySuperChargedLife

Jeff@MySuperChargedLife — Wed, 13 Aug 2008 13:54:00 +0000

I agree that generally extended warranties are not worth it. However, it is smart to take advantage of the manufacturer’s warranty on products.

In our “microwave society”, we often want things done immediately and without hassle. We tend to throw it out and get a new one. We neglect to realize that getting things fixed is a real option. Thanks for reminding us!

By: Peter

Peter — Wed, 13 Aug 2008 13:12:20 +0000

Most repairs that you will have to do for the first few years in the lifespan of a new car are going to fall under the routine maintenance category (tires, brakes, etc) and won’t be covered by any extended warranty anyway.

On the other hand, any serious problem with a major component such as a blown transmission like yours, will be covered by the manufacturer’s warranty. So for most people the extended warranty is most likely just going to be wasted money.

Warranties are a huge profit center for auto dealers -for a reason – most people don’t need them, and don’t use them. And the warranties often have tons of exclusions. Be very careful when purchasing one of these policies..