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Discussion Starter #1
I bought a Toshiba 55" LCD(55HT1U) back in Feb. 2011(6 months ago) and am undecided if I should buy an ext. warranty or not? I was thinking of Mack or Warrantech. If yes, which company do you recommend, and should I buy a 3 year or 5 year plan? I could get either plan for less than $100. The TV cost $899. Thanks.
 

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No! Take $100 and put it in a jar. Everytime you buy a product, put the cost of a warranty in the jar. If something goes wrong during what would be the warranty period, take money out of the jar and buy a new one. When you get old enough to retire, take leftover money out of jar, and buy a nice BIG boat!
 

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I vote no because I can afford to replace a TV if one fails.


Only you know your financial situation. An extended warranty could be cheap insurance for many people.
 

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Quote:
Originally Posted by BoilerJim /forum/post/20832119


I vote no because I can afford to replace a TV if one fails.


Only you know your financial situation. An extended warranty could be cheap insurance for many people.

I agree. It depends completely on your financial situation. Can you afford to fix/replace the TV should something go wrong? Just getting someone to your home will cost more than $100 most likely.
 

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Only you can decide whether the peace of mind is worth it to you. To me, paying an extra 10% for your TV to have it warrantied for six years, instead of just one, doesn't sound like a bad deal to me. Assuming you keep the set for six years, that works out to about $16 a year. So you're paying $16 bucks a year to have the certainty that you won't have to buy a TV for the next six years. Like I said, only you can determine whether it's worth it.


I don't know the statistics for LCD TV failures, but anecdotally my wife's parents bought a Samsung 52" TV, and a few months after the warranty ended, it stopped turning on. Luckily when I called Samsung, they acknowledged it was a common problem, and agreed to fix it once.


And I repair computers on the side, and I would say the rate of laptop LCD screens that fail within six years is fairly high. Backlight failure is the most common problem. Maybe with LED lighting, this isn't an issue.


A year or so ago, I bought a used Panasonic PT-AX100U projector on eBay for $300. The original owner had bought a Mack Camera extended warranty, which I was able to transfer to my name. When I got the projector, I noticed that it had some color tint on parts of the screen. I sent it to Mack Camera, and they said that it was beyond repair. They offered to buy me a new PT-AX200U, or send me a check for $1000 (the price of a new PT-AX200U at the time). I opted for the check, and received it a few weeks later.


So while the Mack Camera warranty may not be as fast or convenient as an in-store service plan, I can attest that, at least in my experience, they DO stand behind their warranties.
 

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I never do because......


In electronics, the vast majority of failures occur early on (e.g. a.k.a. infant mortality) and will be covered by replacement or manufacturer's warranty.


Prices are continuing to fall. 3 years ago I purchased a 32" tier 1 HDTV for $1,200 and today a replacement is $300 - $400 (w/ additional performance, features etc.).


Today the 19" - 32" sets are basically throwaways (e.g. think Timex watches) and the pricing on larger, high end sets will continue to fall dramatically.
 

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Another thing to consider...A lot of credit cards offer automatic warranty extensions. I have a Visa Platinum that I use and it automatically doubles manufacturer warranties up to a year. So something with a one year warranty (most TVs?) will get a two year warranty when purchased with that card.
 

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If you decide on an extended warranty, I'd go with squaretrade over Mack or Warrantech, any day of the week!


If the warranty is cheap enough and it's an expensive product, I always buy a warranty. Would I buy a warranty on a $100 dollar iPod? Absolutely not, but I just don't understand people who won't throw a $100 dollar warranty on a $2000 dollar item. Not to mention, if you shop around and find a really good deal on a TV or any item, you probably saved more money than the $100 dollar warranty you bought, in which case, why not have a 3+ year warranty on it as well?!


I mean, let's say it would cost you $2,000 to add another 3 years onto the warranty of your $40,000 dollar BMW, would you do it? I would. That's just me though. I've had plenty of electronics stuff fail and had things outright replaced several times off of extended warranties.

www.squaretrade.com
 

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I think the answer to the extended warranty question really depends on the costs involved for the TV, the warranty cost and the length of the warranty. I just purchased a reportedly problematical high end 65" TV (my set is fine, so far) for $3500. Even though I didn't buy the TV through Costco, when I found that I could buy a 3 year Square Trade extended warranty through Costco for $99, I didn't hesitate to purchase the warranty.


Two other important factors to consider is that current TV technology is evolving so rapidly and each mfr uses many unique integrated circuits/circuit boards in their new models. This means that if your TV breaks down two or three years from now it may be unrepairable due to a lack of OEM parts. Most of the extended warranties would give you a comparable current model TV as a replacement or refund your purchase price. That's far superior to owning an expensive, but now unrepairable TV.
 

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Not worth it. We have a Panny Plasma that we bought in 2007, and it is still going strong. The only party that is benefiting from an extended warranty is the store, since they make up what they lose in the sell of the electronics.
 

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Quote:
Originally Posted by gregzoll /forum/post/20833668


Not worth it. We have a Panny Plasma that we bought in 2007, and it is still going strong. The only party that is benefiting from an extended warranty is the store, since they make up what they lose in the sell of the electronics.

Most stores don't lose money on things they sell, they might not make a huge profit on some of it, but they're rarely losing money.


That said, obviously, you don't ever buy an extended warranty from the actual store. You buy one straight from the warranty company, for like, $100 bucks. At that price, it's a no-brainer, for me.


In your case, you've been lucky and have a TV that has not had a problem. I worked at Circuit City and Ultimate Electronics and I can't tell you how many people would come back in the store 6 months to a year after a purchase and want us to help them and all we could do was direct them to the manufacturer. We'd tell them had they bought an extended warranty, we could have sent someone to their house on the spot, free of charge.


A lot of customers would get angry and yell and say we never offered them the extended warranty. Well, as I'm sure anyone who has been in a Circuit City or Best Buy knows, they ALWAYS offer you an extended warranty. LOL! So basically, people would refuse to buy an extended warranty from us and be mad when we offered. Then, when their stuff would break, they'd come in claiming we never offered an extended warranty so we should help them for free since we never offered the warranty. Yeah, right. LOL!


That said, extended warranty from the store, I'd pass. Cheap extended warranty online? I can't recommend them enough.
 

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Quote:
Originally Posted by BigTVSteve /forum/post/20833464


I think the answer to the extended warranty question really depends on the costs involved for the TV, the warranty cost and the length of the warranty. I just purchased a reportedly problematical high end 65" TV (my set is fine, so far) for $3500. Even though I didn't buy the TV through Costco, when I found that I could buy a 3 year Square Trade extended warranty through Costco for $99, I didn't hesitate to purchase the warranty.

Thanks for mentioning the Costco option. I didn't realize they sold extended warranties, especially for TVs sold elsewhere. I was on the fence on buying an extended warranty for my new TV, but the price through Costco makes it a no-brainer in my book.
 

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There is no profit margin on electronics. All stores lose profit on electronics. They make their money on accessories and extended warranties. The mark up on accessories is well over 600% on some items.
 

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Quote:
Originally Posted by gregzoll /forum/post/20834160


There is no profit margin on electronics. All stores lose profit on electronics. They make their money on accessories and extended warranties. The mark up on accessories is well over 600% on some items.

I've worked at two electronics retailers and like I said, they may not make much off some items, but they never sell them to people below cost. When the retailers I worked at sold a TV for super-super cheap, they were still typically making $50-$100 dollars more than what the company paid for it.


Of course, the accesories and warranties have the biggest profit margin so they want you to sell it, but they don't sell anything at a loss, usually, minus clearance type stuff, just to get rid of it.


Do you think amazon.com sells their TVs at a loss and tries to make up for it in other places? Absolutely not. And retailers don't sell their stuff at a loss either. Like I said, some things they make far less on and might only make, say $50 dollars on a TV. But, they're not buying TVs for $1,000 dollars and selling them for $800. They're simply not.


Let me also add that manufacturer's would often give our stores and company bonuses for selling more of their brand. Let's say one month our store sold 30% more SONYs than any of the other brands. Sony would give our company a "bonus" usually in the form of bigger discounts on certain "hot" models or pay extra money to the stores that sold more of their brand. So I guarantee you there is profit margin in electronics, otherwise nobody would be in the business of selling it.
 

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I have worked in retail also. Even though the company/store receives a bonus on sales, the store still does not make a high profit margin on electronics. Stores mark up for loss, theft, cost of doing business, wages on the items, but overall, most electronic items they are taking a net loss, not net profit. Yes tv sets have a higher mark up, due to they do not move as fast as other items, same as computers. When you look at the bottom line, it comes down to the mark up on accessories, cds, dvds, computer accessories such as routers, network switches, cords & cables for all items, game controllers for video game systems and their accessories which make up the difference, along with those extended warranties.


Even if you get a extended warranty/insurance against the item through a third party, it still comes down to a waste of money. As another poster stated, take the money and put into a jar, and by the time the life of the tv set is to the point that it dies in 5 to 10 years, you have saved enough for a newer set.
 

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Discussion Starter #17
Thanks guys. I didn't know Costco sells extended warranties if you didn't buy the TV from them. But do they only sell Square Trade warranties? Because ST does not sell warranties to anyone living here in Wisconsin. Does Sam's Club sell ext. warranties if the TV wasn't bought there? I've already had the TV for 6 months, so I have to decide soon.
 

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Quote:
Originally Posted by Jim McC /forum/post/20834388


Thanks guys. I didn't know Costco sells extended warranties if you didn't buy the TV from them. But do they only sell Square Trade warranties? Because ST does not sell warranties to anyone living here in Wisconsin. Does Sam's Club sell ext. warranties if the TV wasn't bought there? I've already had the TV for 6 months, so I have to decide soon.

It is not worth it, and if you have had the tv for six months, it is too long to even get it if you wanted to. Also the tv set is worth 85% less than what you paid for it, due to it devalues the minute you purchase it. Basically do not waste your money.
 

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I don't know how the Square Trade warranties work, but you can buy a Mack Camera warranty as long as there is at least 90 days left on your manufacturer's warranty. So it gives you some time to think about it, but make sure you keep your original receipt for your TV.
 

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Quote:
Originally Posted by gregzoll /forum/post/20834595


It is not worth it, and if you have had the tv for six months, it is too long to even get it if you wanted to. Also the tv set is worth 85% less than what you paid for it, due to it devalues the minute you purchase it. Basically do not waste your money.

I urge you to read the small print at Costco's website before dispensing your expert advice. They state that a full refund will be issued if the TV cannot be promptly fixed!


My daughter-in-law just purchased an extended warranty for her 47" Vizio purchased at Costco for around $60. That's two year Costco warranty + three years extended warranty = 5 YRS. If it can't be fixed, you will be refunded 100% of price paid.
 
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