Prompt Cast
Should You Buy an Extended Product Warranty?
TLDR Buying an extended warranty for your products is usually a bad idea statistically, but there are instances where it can be beneficial, such as for high dollar items like big flat screens or cell phones. However, it's important to consider factors like existing coverage from credit cards or manufacturers, potential shipping costs, and the hassle of dealing with repair companies.
Timestamped Summary
00:00
The podcast episode discusses whether or not to buy an extended product warranty.
03:06
There is no definitive answer on whether or not to buy an extended warranty, but statistically speaking, it is usually a bad idea as most products either break within the first year or after the extended warranty has expired.
06:16
Extended warranties are often a bad idea statistically, but there are instances where they can be beneficial, such as in the case of Circuit City and Best Buy, who heavily relied on extended warranty sales for their operating income.
09:23
Extended warranties can be beneficial for high dollar items like big flat screens or rear projection TVs, as well as for PC laptops or home PCs that have a high chance of needing repair within a three-year period.
12:34
Extended warranties are not only beneficial for high dollar items, but also for cell phones, as they are designed specifically for people who lose or break their phones and can end up being cheaper than replacing the phone.
15:30
Extended warranties are not a good idea because most credit cards already ensure your item for an extended period of time upon purchase, and you may be paying for something that's already covered; also, you're paying for a year that's already covered by the manufacturer's warranty, and you often have to pay for shipping both ways.
18:29
Extended warranties can be a hassle and a waste of money, as demonstrated by the host's personal experience with a broken washer and dryer and the poor customer service from the contracted repair company.
Categories:
Society & Culture
