Shopping Discussion

Extended Warranty Purchases for TV's

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  • Jan 2nd, 2018 9:15 pm
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Mar 3, 2011
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Extended Warranty Purchases for TV's

Wanted to post a question out there and figure for the more recent warranties provided buy the big box stores regarding their TV's.. this will vary in cost based on either the size, make, model or cost there are some who say that you shouldn't purchase an extended warranty for more than 10-15% of the item value but that can't always be the case because there are too many factors - go to one brand name store, add a tv and then add service plan and usually they will offer a 2-3yr sometimes up to 4 or 5.

Regardless of the above, I want to know what everyones thoughts are on purchasing this "piece of mind" protection from the store and is it worth it? I figure if I am buying a $1000 tv and spend $100-$400 for this warranty I dont think it's worth it because well it was a cheap tv so you can go out an buy another but what if you bought a $4000-$20,000 tv where your warranty cost will be $2000-$3000 do you feel that yes, even though the store has your money and feel that this insurance option is a scam there is something there that will save your a$$ in the end.

Also remember that if you purchase this on your credit card, the CC "MAY" have extended warranty but not all of them do and may cover you an additional 12mo. after the manufacturers warranty has expired, do you feel like this makes you feel better that it will overlap your extended warranty coverage if you had purchased one?
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Apr 16, 2002
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Extended warranties are for suckers. I should know, sold plenty back in the day. Great $ in commissions
Not only did we embarrass Marky Mark, we let down the Funky Bunch.
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markopas wrote:
Dec 31st, 2017 11:23 pm
Regardless of the above, I want to know what everyones thoughts are on purchasing this "piece of mind" protection from the store and is it worth it? I figure if I am buying a $1000 tv and spend $100-$400 for this warranty I dont think it's worth it because well it was a cheap tv so you can go out an buy another but what if you bought a $4000-$20,000 tv where your warranty cost will be $2000-$3000 do you feel that yes, even though the store has your money and feel that this insurance option is a scam there is something there that will save your a$$ in the end.
In general, extended warranties won't be worthwhile as the insurance companies make money on them, so while a small number of people will be able to make a claim, the vast majority won't. The only exception to this is the ones offered via Costco. Because the extended warranties are so cheap, it's a no brainer. For TVs $1,000 and over, it's only $100 for a total of 5 years of warranty and only $60 for TVs between $500 and $999. Prices are flat, and isn't based on the price (besides the main price category), so a $7,000 TV (the most expensive one on Costco.ca) is only $100 for the extended warranty.

See here:

Costco

In comparison, at Best Buy, a four year warranty on a $999.99 TV is $240 (would be $60 for five years at Costco).
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Feb 9, 2012
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sprung wrote:
Dec 31st, 2017 11:48 pm
Extended warranties are for suckers. I should know, sold plenty back in the day. Great $ in commissions
I've made great use of them, but keep on mind, I was buying open box product to begin with.
I've returned a 20 inch computer monitor and recieved a 22 inch monitor (better than what I had) at no extra charge because the 20 inch malfunctioned a year and a half after purchase, and that size was discontinued.
Same with the TV.
I have not yet had to return the actual TV, but the warranty added onto an open box discount meant that the overall price of the TV (warranty included) worked out to be LESS than the price of the TV. (starting with being a 10% open box discount instead of 5%)
When buying open box, I argue that the extended warranty is not for suckers. Deals (at best buy) can be made, and the price comes down when you say yes to the extended warranty.

Another reason why I pay for extended warranty is because I much prefer to deal with just the store and not the manufacturer.
Less hassle. Less headache.
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jm1 wrote:
Jan 1st, 2018 1:26 am
In general, extended warranties won't be worthwhile as the insurance companies make money on them, so while a small number of people will be able to make a claim, the vast majority won't. The only exception to this is the ones offered via Costco. Because the extended warranties are so cheap, it's a no brainer. For TVs $1,000 and over, it's only $100 for a total of 5 years of warranty and only $60 for TVs between $500 and $999. Prices are flat, and isn't based on the price (besides the main price category), so a $7,000 TV (the most expensive one on Costco.ca) is only $100 for the extended warranty.

See here:

Costco

In comparison, at Best Buy, a four year warranty on a $999.99 TV is $240 (would be $60 for five years at Costco).
Yeah, that's great if you are buying a tv from Costco if they have what you area looking otherwise you are pretty much forced to look elsewhere.
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Aug 2, 2004
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I think it is for suckers.

The only time I would buy an extended warranty is for a used car. The warranty is for the labor and well worth it.

If my TV breaks, I would just pay to repair it. Your considering $2000 - $3000 on a $20,000 item? You think it will cost more than $2000 to have it repaired?
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Gee wrote:
Jan 1st, 2018 12:44 pm
If my TV breaks, I would just pay to repair it.
Though of course perhaps half of TV repairs these days, it's more cost-effective to just buy a new TV. Simple stuff like T-con boards, and other small ancillary board/circuit failures may be "cheap enough" to fix but even getting into the repair of mobos and proprietary ICs the likes of Sony and Samsung typically use, the cost is probably high enough that you'll consider a new TV instead. Why pay $1000 to fix a TV that cost only $1500 or $2000? And, because of economies of scale an equivalent TV a few years down the road may cost much less--that OLED someone paid $3500 today for...let's say there's a repair that costs $1200 at that point in time. But whoops now a similar TV is only $1800--so might as well just buy a new one, right?

That's not even getting into panel failures because any panel failure is automatically as much as the TV (sometimes more considering parts-pricing and labour rates) meaning it's definitely time for replacement if it's a panel issue. In that case and extended warranty comes in handy because it pays for the replacement. However I agree that they're only really worth it at Costco. Otherwise, it's mostly a rip-off. Though I have cashed in on extended warranties in the past and they worked out okay for me, I stopped buying them a long time ago. Pretty sure the RFD consensus has always been they are not worth it and I agree.
playnicee1 wrote:
Jan 1st, 2018 10:24 am
Another reason why I pay for extended warranty is because I much prefer to deal with just the store and not the manufacturer.
Less hassle. Less headache.
Yeah and what happens when this happens? LOL. Who you gonna deal with when there are no stores? Drink that down with the advil 'cause you may well be in for some headaches :lol: Just be sure that if you do buy extended warranty, read the fine print. Is this warranty underwritten/insured by a 3rd party company? Will that company provide warranty service if the original seller store is out of business? Those are things to consider or you may be left like the suckers that bought Sears extended service agreements that aren't worth more than the paper they're written on anymore.
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playnicee1 wrote:
Jan 1st, 2018 4:24 pm
It seems, there's always someone willing to step up to the plate and bat for you: https://www.yahoo.com/news/brick-will-h ... 07300.html
A few things:
1. Brick is one of the scummiest retailers out there--well known RFD. Never buy anything from there; never trust them. Maybe the electronics as they are made by reputable manufacturers and are standard models, but the furniture and stuff? Uh no thanks. Anything that has to be delivered? Forget it.

2. To be clear, Brick is not actually "honouring" these warranties. What they are doing is:
-if you have the original manufacturer's warranty in place (usually 1yr) they will get the service arranged for you and it will be performed under warranty.
-if you have an extended warranty and the original warranty is already over, they just arrange the service for you, you still have to pay for the repair. But, if you go through them, they give you a $100 GC to buy stuff from them, in the future.

In the first case you can easily do this without their help and just call up the manufacturer or go on their website. In the second case, eh yeah you get a $100 GC but you're still paying for a repair which they may well get a kickback from, and they're gaining a customer by getting you back into their store to spend that GC and hoping you spend more money than that.

Brick isn't stupid they're just extending their scammy ways they have of getting people in the door, to in turn buy stuff from them. They aren't doing anyone any favours here. Unless you can use that $100 towards some carry-out, branded electronics they sell, I say do not get involved with them at all, it's simply a bad idea.
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ES_Revenge wrote:
Jan 1st, 2018 2:02 pm
Though of course perhaps half of TV repairs these days, it's more cost-effective to just buy a new TV.
I agree. It is a throw away society. The technology will change within 5 years. If I pay $2000 for a TV, in my mind that works out to $400 a year or just over a $1 per day. If it breaks I won’t repair it. Hell, it costs me more to own a cell phone.

But I was referencing a comment made about paying $2000 for an extended warranty for a item worth $20,000. In that case, I would just gamble and pay for the repair if necessary.
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Feb 9, 2012
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ES_Revenge wrote:
Jan 1st, 2018 5:16 pm
A few things:
1. Brick is one of the scummiest retailers out there--well known RFD. Never buy anything from there; never trust them. Maybe the electronics as they are made by reputable manufacturers and are standard models, but the furniture and stuff? Uh no thanks. Anything that has to be delivered? Forget it.

2. To be clear, Brick is not actually "honouring" these warranties. What they are doing is:
-if you have the original manufacturer's warranty in place (usually 1yr) they will get the service arranged for you and it will be performed under warranty.
-if you have an extended warranty and the original warranty is already over, they just arrange the service for you, you still have to pay for the repair. But, if you go through them, they give you a $100 GC to buy stuff from them, in the future.

In the first case you can easily do this without their help and just call up the manufacturer or go on their website. In the second case, eh yeah you get a $100 GC but you're still paying for a repair which they may well get a kickback from, and they're gaining a customer by getting you back into their store to spend that GC and hoping you spend more money than that.

Brick isn't stupid they're just extending their scammy ways they have of getting people in the door, to in turn buy stuff from them. They aren't doing anyone any favours here. Unless you can use that $100 towards some carry-out, branded electronics they sell, I say do not get involved with them at all, it's simply a bad idea.
Yup. You've made good points. I've never actually liked the Brick (/Leon's) myself. Yahoo really should change their subject line lol
However, Best buy treated me very good with open product.
They tell me they can only go deep with the discounts on open box products, and only if I say yes to the warranty.
The price of the TV, including extended warranty worked out to a deeper discount than 10% off shelf price without the warranty.
If I didn't take the warranty the TV would have actually cost me at least $20 more plus tax.
I've already saved money, so if the store closes, I'm not worried.

However, if a store can stick around, I hate dealing with anything outside of the store itself.

I am learning though that computers are another story. Suck me in with a deep discount on open box then bill me $20 a month for at least a year of "Geek squad protection" to fix a $70 problem that the computer store down the street could have fixed...
[OP]
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Ok, I think I need to further elaborate this conversation - let's say that I am using the LG W7 65" as example, the price for this tv is the same across the board @ $9,999.99 from all retailers.

Best Buy Extended Warranty is:
2yr - 699.99 / 3yr - 829.99 / 4yr - 1119.99

Visions Extended Warranty is:
3yr - 1749.99 / 5yr - 2029.99

2001 Audio Video Extended Warranty is :
1yr - 999.99 / 2yr - 1099.99 / 3yr - 1199.99

Are you guys telling me that if there was an issue with your tv after 24mo. past your manufacturer's warranty and if you had it past your credit card extended warranty that you would fork out the cash to repair your tv? what if the cost for the repair was $1000 that includes the price for the part and labour and you have to drop the tv to a depot for repair. What if the issue was that you had a different issue 6mo. after the first repair for something completely different and that was $500, are you saying that you would continue to pay whatever the cost will be for repair?
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Nov 11, 2008
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Would not buy it. If a TV breaks early, I chuck it up as bad luck. I and my family members have purchased 10 TVs over the course of 15 years and not one has broke. most of the time, it me wanting to upgrade than they breaking.
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I always break it down to percentages...

If extended warranty is > 10% of the item, forget about it because not many things have a fail rate that high and if they do... well you probably dont want to buy it anyways (or the insurance will cost a lot more)

If its 5-10% then it depends on the item and what the fail rate seems to be for similar/older version of the product and also if ill actually care if it breaks (or if i will replace it before the warranty is even up)... basically costco warranty will likely fall into this category (and i did buy it for hisense tv $60 for $750 base cost). If i bought a mu6300 (65”) however i wouldnt have bought the warranty (more faith in samsung, closer to 10%) but i would have for a 75” mu6300 (5%). For samsung i would probably draw the line around 7.5% and that varies by brand. I know its strange but its generally how i make my warranty decisions.

If its < 5% and i think there is a chance the item breaks (not cables, plugs, disc, etc) and/or i wont replace it within 5 years then its a no brainer (almost nothing falls into this category tho unless i bought say a lg 65” oled or 82mu8000 from costco)

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