Comments on: Should I or Shouldn’t I? The Definitive Extended Warranty Litmus Test http://lenpenzo.com/blog/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test.html The offbeat personal finance blog for responsible people. Fri, 17 Feb 2012 00:33:27 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: HondaExtendedWarranty http://lenpenzo.com/blog/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test.html#comment-140438 HondaExtendedWarranty Thu, 24 Nov 2011 19:49:25 +0000 http://lenpenzo.com/blog/?p=1008#comment-140438 Most of the time having extended warranty does not make sense, but there are some products that it does make sense. Example would be having extended warranty for vehicles. Even if it costs quite a bit, some people like to have peace of mind knowing their cars will be covered, and that mechanics won't surprise them with additional charges. Most of the time having extended warranty does not make sense, but there are some products that it does make sense. Example would be having extended warranty for vehicles. Even if it costs quite a bit, some people like to have peace of mind knowing their cars will be covered, and that mechanics won’t surprise them with additional charges.

]]> By: Week in Review: Spring Edition http://lenpenzo.com/blog/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test.html#comment-139465 Week in Review: Spring Edition Sat, 22 Oct 2011 12:30:44 +0000 http://lenpenzo.com/blog/?p=1008#comment-139465 [...] When you buy any type of appliance warranties are not being offer for sale. @Len Penzo Dot Com gives us a decision tree to use that he bills as the definitive extended warranty litmus test. [...] [...] When you buy any type of appliance warranties are not being offer for sale. @Len Penzo Dot Com gives us a decision tree to use that he bills as the definitive extended warranty litmus test. [...]

]]> By: Bruce Lee Workout http://lenpenzo.com/blog/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test.html#comment-139141 Bruce Lee Workout Mon, 10 Oct 2011 16:54:45 +0000 http://lenpenzo.com/blog/?p=1008#comment-139141 Extended warranties are sometimes not neccessary as it often crosses over the manufacturers warranties and can also be put on your house insurance at no extra cost. Extended warranties are sometimes not neccessary as it often crosses over the manufacturers warranties and can also be put on your house insurance at no extra cost.

]]> By: MRSA http://lenpenzo.com/blog/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test.html#comment-101853 MRSA Mon, 12 Sep 2011 20:41:16 +0000 http://lenpenzo.com/blog/?p=1008#comment-101853 I would too. I remember when I bought my last lawn mower and they gave me a similar option and I got it. I was very thankful because after 4 years it died and luckily I had the additional warranty. I would too. I remember when I bought my last lawn mower and they gave me a similar option and I got it. I was very thankful because after 4 years it died and luckily I had the additional warranty.

]]> By: Jeremy Albert http://lenpenzo.com/blog/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test.html#comment-51685 Jeremy Albert Wed, 18 May 2011 10:11:42 +0000 http://lenpenzo.com/blog/?p=1008#comment-51685 Do you've a profile on twitter? I can't seem to come across Should I or Shouldn’t I? The Definitive Extended Warranty Litmus Test Len Penzo dot Com on the website and I would like to connect with you there. I like your writing style, thanks Jeremy Albert Do you’ve a profile on twitter? I can’t seem to come across Should I or Shouldn’t I? The Definitive Extended Warranty Litmus Test Len Penzo dot Com on the website and I would like to connect with you there. I like your writing style, thanks Jeremy Albert

]]> By: Little House http://lenpenzo.com/blog/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test.html#comment-2169 Little House Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=1008#comment-2169 I like your chart, great way to make a decision on a warranty. My husband and I purchased an extended warranty on our Honda 5 years ago and it still has a life of 2 more years. All in all, we probably didn't need it, but we're still covered in case anything goes wrong. I also like your point about items becoming obsolete. Many computer accessories, like flat screen monitors, are outdated within a year. (we just had this happen to us.) Our LG monitor, not even 2 years old, stopped turning on. We didn't purchase the extended warranty, but it had a manufacturer warranty up to 3 years. We are now awaiting a <em>refurbished</em> one, since our model is no longer made. The Story of Stuff explains a little about how companies purposely build in obsolescence. .-= Little House´s last blog ..<a href="http://feedproxy.google.com/~r/LittleHouseInTheValley/~3/z1F-6MrfqlA/tuesday-tips" rel="nofollow">Tuesday Tips</a> =-. I like your chart, great way to make a decision on a warranty. My husband and I purchased an extended warranty on our Honda 5 years ago and it still has a life of 2 more years. All in all, we probably didn’t need it, but we’re still covered in case anything goes wrong.

I also like your point about items becoming obsolete. Many computer accessories, like flat screen monitors, are outdated within a year. (we just had this happen to us.) Our LG monitor, not even 2 years old, stopped turning on. We didn’t purchase the extended warranty, but it had a manufacturer warranty up to 3 years. We are now awaiting a refurbished one, since our model is no longer made. The Story of Stuff explains a little about how companies purposely build in obsolescence.
.-= Little House´s last blog ..Tuesday Tips =-.

]]> By: Kevin@OutOfYourRut http://lenpenzo.com/blog/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test.html#comment-2170 Kevin@OutOfYourRut Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=1008#comment-2170 The problem with warranties, and why I never take them, is they cover the first few months or a year or two of a products life. That's when it's in the best working order and least likely to crap out. Usually, if a product fails that early in the process, you can get the company to take it back and replace it. It seems like a waste of money, I mean think about it, if the company really believed in their product and it's integrity, why even offer a warranty, other than as an add on to make more money? The other issue I have is that when I have taken warranties, they've been not quite what we think they should be. There are exclusions for this issue and that, or they don't cover labor, or "we can't do that in this state"--all gotcha provisions. Worse than having a faulty product, is having the product but having paid for a warranty that the company won't honor, or won't honor in full. .-= Kevin@OutOfYourRut´s last blog ..<a href="http://outofyourrut.com/blog/2010/03/16/save-for-retirement-now-or-payoff-your-mortgage-first/" rel="nofollow">Save for Retirement Now or Payoff Your Mortgage First?</a> =-. The problem with warranties, and why I never take them, is they cover the first few months or a year or two of a products life. That’s when it’s in the best working order and least likely to crap out.

Usually, if a product fails that early in the process, you can get the company to take it back and replace it. It seems like a waste of money, I mean think about it, if the company really believed in their product and it’s integrity, why even offer a warranty, other than as an add on to make more money?

The other issue I have is that when I have taken warranties, they’ve been not quite what we think they should be. There are exclusions for this issue and that, or they don’t cover labor, or “we can’t do that in this state”–all gotcha provisions.

Worse than having a faulty product, is having the product but having paid for a warranty that the company won’t honor, or won’t honor in full.
.-= Kevin@OutOfYourRut´s last blog ..Save for Retirement Now or Payoff Your Mortgage First? =-.

]]> By: Susan Tiner http://lenpenzo.com/blog/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test.html#comment-2171 Susan Tiner Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=1008#comment-2171 Great post. I buy the extended warranty for PC laptops (not Mac) because of the failure rate, and also because they usually make it convenient to send the laptop out for repair/replacement, e.g., send you a box with a suspended sling to safely ship the laptop. Great post. I buy the extended warranty for PC laptops (not Mac) because of the failure rate, and also because they usually make it convenient to send the laptop out for repair/replacement, e.g., send you a box with a suspended sling to safely ship the laptop.

]]> By: 20smoney http://lenpenzo.com/blog/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test.html#comment-2172 20smoney Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=1008#comment-2172 Very thorough and informative post! Great reference for future decisions on warranties. Thanks! .-= 20smoney´s last blog ..<a href="http://20smoney.com/2010/03/17/reader-question-is-health-care-a-right/" rel="nofollow">Reader Question: Is Health Care A Right?</a> =-. Very thorough and informative post! Great reference for future decisions on warranties.

Thanks!
.-= 20smoney´s last blog ..Reader Question: Is Health Care A Right? =-.

]]> By: Len Penzo http://lenpenzo.com/blog/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test.html#comment-2173 Len Penzo Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=1008#comment-2173 @LittleHouse: Hondas are just so reliable that I wonder if more than a small percentage ever get their money back from those extended warranties. I am a big Honda fan. We have two, in addition to the 97 Civic we have an 01 Odyssey and both are just so dependable. Of course we take meticulous care of them - they are always garaged and we keep to regular maintenance schedules. Still, it sounds like you appreciate the peace of mind and for many people its hard to put a price on that. :-) As for the Story of Stuff, please check out "The Story of Stuff, the Critique" at this link and let me know what you think. I think he makes a very solid case: http://www.youtube.com/watch?v=c5uJgG05xUY @Kevin: One of the biggest "gotchas" is a pro-rated warranty. As I demonstrated in an earlier article on my water heater - an extended warranty that is pro-rated is usually not worth it. For more on that story, here is the link: www.lenpenzo.com/blog/id819-how-i-fixed-my-water-heater-without-a-plumber-and-saved-400.html @Susan: For a lot of folks, laptops are probably one of the few items where it may make sense to buy an extended warranty. @LittleHouse: Hondas are just so reliable that I wonder if more than a small percentage ever get their money back from those extended warranties. I am a big Honda fan. We have two, in addition to the 97 Civic we have an 01 Odyssey and both are just so dependable. Of course we take meticulous care of them – they are always garaged and we keep to regular maintenance schedules. Still, it sounds like you appreciate the peace of mind and for many people its hard to put a price on that. :-)

As for the Story of Stuff, please check out “The Story of Stuff, the Critique” at this link and let me know what you think. I think he makes a very solid case: http://www.youtube.com/watch?v=c5uJgG05xUY

@Kevin: One of the biggest “gotchas” is a pro-rated warranty. As I demonstrated in an earlier article on my water heater – an extended warranty that is pro-rated is usually not worth it. For more on that story, here is the link:

http://www.lenpenzo.com/blog/id819-how-i-fixed-my-water-heater-without-a-plumber-and-saved-400.html

@Susan: For a lot of folks, laptops are probably one of the few items where it may make sense to buy an extended warranty.

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