Comments on: 25 Rules to Grow Rich By #25: Warranties http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/ Simple, applicable personal finance advice for the modern world Sun, 22 Nov 2009 01:08:33 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Outdoorseaguy http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/comment-page-1/#comment-803953 Outdoorseaguy Thu, 05 Nov 2009 17:23:04 +0000 http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/#comment-803953 I'm still torn about the extended warranties when it comes to computers. I've bought several Macs, which - no offense to Ellen - have been the best computers I've ever bought. I've bought AppleCare for my Macs and never regretted it. If my computer breaks, I can take it to the Apple Store and not worry about the cost of replacing an expensive LCD or getting the motherboard replaced if something ever happens. To this day, though, I haven't had an issue that's required me to use the AppleCare. Yes, I spent money on insurance, but like an emergency fund, I'm glad it's there if I do need it. I’m still torn about the extended warranties when it comes to computers. I’ve bought several Macs, which – no offense to Ellen – have been the best computers I’ve ever bought. I’ve bought AppleCare for my Macs and never regretted it. If my computer breaks, I can take it to the Apple Store and not worry about the cost of replacing an expensive LCD or getting the motherboard replaced if something ever happens. To this day, though, I haven’t had an issue that’s required me to use the AppleCare. Yes, I spent money on insurance, but like an emergency fund, I’m glad it’s there if I do need it.

]]> By: rodgerlvu http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/comment-page-1/#comment-663154 rodgerlvu Fri, 15 May 2009 07:37:42 +0000 http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/#comment-663154 thanks for your help... thanks for your help…

]]> By: Erik http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/comment-page-1/#comment-539093 Erik Thu, 26 Feb 2009 19:18:05 +0000 http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/#comment-539093 I disagree with this part. I bought an Xbox 360 after hearing about the Red Ring of Death. I paid $399 + $60 for the 2 year warranty. After replacing it a couple times from it breaking, i headed in to the store with a couple days left on the warranty. At this time, the price had dropped to $299. They gave me back $399 and I then bought another Xbox 360 and a warranty, and getting $40 back. I then did this two years later when the Xbox 360 dropped to $199 and I received another $40. So I spent $399 on the Xbox and $120 on the warranties. But I received $80 back. So a $40 warranty for 4 years... More than worth it. And for the convienance of going to the store and giving them the broken one and picking another up(Total time 1 hour) it is more than worth it compared to Microsoft's 1-3month turn around sometimes. If you are going to be using and abusing the item, than a warranty is worth it. I disagree with this part. I bought an Xbox 360 after hearing about the Red Ring of Death. I paid $399 + $60 for the 2 year warranty. After replacing it a couple times from it breaking, i headed in to the store with a couple days left on the warranty. At this time, the price had dropped to $299. They gave me back $399 and I then bought another Xbox 360 and a warranty, and getting $40 back. I then did this two years later when the Xbox 360 dropped to $199 and I received another $40. So I spent $399 on the Xbox and $120 on the warranties. But I received $80 back. So a $40 warranty for 4 years… More than worth it. And for the convienance of going to the store and giving them the broken one and picking another up(Total time 1 hour) it is more than worth it compared to Microsoft’s 1-3month turn around sometimes. If you are going to be using and abusing the item, than a warranty is worth it.

]]> By: John http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/comment-page-1/#comment-523813 John Tue, 17 Feb 2009 19:36:59 +0000 http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/#comment-523813 These comments are too old to still be relevant. Cheap (less than 200) extended warranties (3 years) that repair on site are worth it but otherwise..... Good laptops are easy to get for less than 1000. Paying 300 for an extended warranty makes no sense. Look at it this way...would you pay $9000 for a bumper to bumper warranty on your new $30000 car which would push the purchase price up to $39000. These comments are too old to still be relevant.

Cheap (less than 200) extended warranties (3 years) that repair on site are worth it but otherwise…..

Good laptops are easy to get for less than 1000. Paying 300 for an extended warranty makes no sense.

Look at it this way…would you pay $9000 for a bumper to bumper warranty on your new $30000 car which would push the purchase price up to $39000.

]]> By: Matt http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/comment-page-1/#comment-249316 Matt Mon, 21 Apr 2008 23:19:55 +0000 http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/#comment-249316 As an IT manager for a mid-sized firm that uses a lot of laptops, I can say that I'd NEVER buy a laptop without an extended warranty. The article's advice that because laptops are a mainstream commodity, they must be reliable is shoddy advice at best. Buyer beware, most laptops only come with a 90 day warranty (1 year on business models). I have seen as much as a 50% failure rate on certain models within the 3 year rotation cycle we use. Laptop repairs are usually quite expensive ($500-$600 for LCDs or System boards). As an IT manager for a mid-sized firm that uses a lot of laptops, I can say that I’d NEVER buy a laptop without an extended warranty. The article’s advice that because laptops are a mainstream commodity, they must be reliable is shoddy advice at best. Buyer beware, most laptops only come with a 90 day warranty (1 year on business models). I have seen as much as a 50% failure rate on certain models within the 3 year rotation cycle we use. Laptop repairs are usually quite expensive ($500-$600 for LCDs or System boards).

]]> By: Wilfried http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/comment-page-1/#comment-71129 Wilfried Fri, 14 Sep 2007 11:00:05 +0000 http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/#comment-71129 I usually go for the 2 or three year manufacturer next business day on-site repair warranty. It was always relatively inexpensive ($150-$200 for 3 years) and I used it every time I got it, no matter what the laptop brand was. My USB port got fried, I call them up they repair it in my home. My LCD has several bad pixels I call them up, they exchange it at my home. The "on-site repair" feature is just great and for me it's worth every penny. I just don't want to be without a laptop for days or even weeks in case I have to send it in for repair. That also makes you actually use it because you don't have to balance between the hassle of sending it in and getting the repair done. For all other electronics I strictly agree. I usually go for the 2 or three year manufacturer next business day on-site repair warranty. It was always relatively inexpensive ($150-$200 for 3 years) and I used it every time I got it, no matter what the laptop brand was. My USB port got fried, I call them up they repair it in my home. My LCD has several bad pixels I call them up, they exchange it at my home. The “on-site repair” feature is just great and for me it’s worth every penny. I just don’t want to be without a laptop for days or even weeks in case I have to send it in for repair. That also makes you actually use it because you don’t have to balance between the hassle of sending it in and getting the repair done.

For all other electronics I strictly agree.

]]> By: Chris http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/comment-page-1/#comment-60658 Chris Wed, 22 Aug 2007 18:28:29 +0000 http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/#comment-60658 I disagree with this under one caveat. I payed for the 3-year extended warranty on my HP laptop because it was my work laptop, if anything went wrong every day that went by would cost me money. The laptop is lugged around in a bag every day and so is open to issues and breakage from every angle everyday. Knowing that when my laptop goes down I can get it replaced in a few days is great, and one single repair bill would have outweighed the $130.00 cost of the plan. I consider it cheap insurance for both the merchandise and for profitability. I disagree with this under one caveat. I payed for the 3-year extended warranty on my HP laptop because it was my work laptop, if anything went wrong every day that went by would cost me money. The laptop is lugged around in a bag every day and so is open to issues and breakage from every angle everyday. Knowing that when my laptop goes down I can get it replaced in a few days is great, and one single repair bill would have outweighed the $130.00 cost of the plan. I consider it cheap insurance for both the merchandise and for profitability.

]]> By: jake http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/comment-page-1/#comment-5182 jake Mon, 05 Feb 2007 10:53:16 +0000 http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/#comment-5182 Like the posters above you should get warranty on a laptop. My sister's laptop which is only two years old, had its fan go dead, and overheated her laptop. The cost for repair was so insane, she ended up buying a brand new computer for the same price as the repair. Another thing is that a lot of warranties include virus cleaning and system recovery. I recently recommended this to a friend of a friend who was buying a computer for the first time. A few months later he had to bring the computer in because it was loaded with viruses. Without the warranty the store would have charged him close to $200. I highly recommend this if you know little to nothing about computers. Like the posters above you should get warranty on a laptop. My sister’s laptop which is only two years old, had its fan go dead, and overheated her laptop. The cost for repair was so insane, she ended up buying a brand new computer for the same price as the repair.

Another thing is that a lot of warranties include virus cleaning and system recovery. I recently recommended this to a friend of a friend who was buying a computer for the first time. A few months later he had to bring the computer in because it was loaded with viruses. Without the warranty the store would have charged him close to $200. I highly recommend this if you know little to nothing about computers.

]]> By: Chris Byrne http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/comment-page-1/#comment-1545 Chris Byrne Thu, 21 Dec 2006 10:23:31 +0000 http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/#comment-1545 There is one reason to buy a factory extended warranty for a laptop, and that's the LCD. The standard factory warranty typically offers little or no coverage for LCD damage, and what coverage it does offer is for a reduced length of time in comparison to the full warranty. If the factory extended warranty plan covers LCD breakage, and will cost you less than 25% of the cost of the Laptop over the time period in which you plan on owning it before replacement (typically 3-4 years), then it is worth it; otherwise forget it. There is one reason to buy a factory extended warranty for a laptop, and that’s the LCD.

The standard factory warranty typically offers little or no coverage for LCD damage, and what coverage it does offer is for a reduced length of time in comparison to the full warranty.

If the factory extended warranty plan covers LCD breakage, and will cost you less than 25% of the cost of the Laptop over the time period in which you plan on owning it before replacement (typically 3-4 years), then it is worth it; otherwise forget it.

]]> By: EJS http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/comment-page-1/#comment-1194 EJS Sat, 16 Dec 2006 18:18:10 +0000 http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/#comment-1194 MindEase note: The one warranty I would never do without is the Dell Complete Care warranty. Since I have 3 kids, I wanted something that would cover the accidental damage my kids are almost SURE to create to either my or my wife's laptop. With the complete care warranty if they spill a juice in it, Dell will clean it, repair it or replace it. And with an 8 year old, a 6 year old, and a 5-month old... Accidents will happen. Granted, it cost me quite a bit, but... I think it is well worth the peace of mind. MindEase note: The one warranty I would never do without is the Dell Complete Care warranty. Since I have 3 kids, I wanted something that would cover the accidental damage my kids are almost SURE to create to either my or my wife’s laptop. With the complete care warranty if they spill a juice in it, Dell will clean it, repair it or replace it. And with an 8 year old, a 6 year old, and a 5-month old… Accidents will happen. Granted, it cost me quite a bit, but… I think it is well worth the peace of mind.

]]> By: Ellen http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/comment-page-1/#comment-1133 Ellen Fri, 15 Dec 2006 17:02:42 +0000 http://www.thesimpledollar.com/2006/12/15/25-rules-to-grow-rich-by-25-warranties/#comment-1133 Caveat to this: unless you're buying a Mac. Apple knows that it's the only place you can go for OSX-y goodness, so the hardware is STILL crap. If you plan on getting this overpriced junk, do spring for the extended warranty, unless you like replacing your computer every year. PS I have had several iBooks myself, so I don't mean to be a hater, but seriously, I've had so many hardware problems, I would almost switch to a PC at this point. Caveat to this: unless you’re buying a Mac. Apple knows that it’s the only place you can go for OSX-y goodness, so the hardware is STILL crap. If you plan on getting this overpriced junk, do spring for the extended warranty, unless you like replacing your computer every year.

PS I have had several iBooks myself, so I don’t mean to be a hater, but seriously, I’ve had so many hardware problems, I would almost switch to a PC at this point.

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