Extended warranty

kevnm67kevnm67 Registered Users Posts: 4 Beginner grinner
edited May 24, 2007 in Cameras
Hello guys, im new to the forum. I have found a lot of useful information in the time ive been lurking. Anyway, I wanted to know what everyone thought about extended warranty that stores offer. Thanks in advance

Comments

  • pathfinderpathfinder Super Moderators Posts: 14,703 moderator
    edited May 5, 2007
    Hi Kevin,

    Welcome to dgrin.

    Generally, I think extended warranties are money makers for stores and a loser for most consumers. I rarely bite when offered one. I do have an all hazards insurance policy for my cameras and lenses from State Farm.

    There is an exception to this and that is Apple Care offered by Apple to extend the warranty up to three years.

    I recently had my dual 2.5 Ghz PowerMac in for some issues ( it would not go to sleep and wake up properly -other than that it seemed fine ) It is over 2 years old.

    Apple replaced the motherboard, both processors and the case without any charge or hesitation. ~$2k worth of repairs. It is up and runnign again and I am a happy little camper.
    Pathfinder - www.pathfinder.smugmug.com

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  • kevnm67kevnm67 Registered Users Posts: 4 Beginner grinner
    edited May 5, 2007
    pathfinder wrote:
    Hi Kevin,
    I do have an all hazards insurance policy for my cameras and lenses from State Farm.

    Forgot about using an all hazards insurance policy. I use that on my taping gear, thanks for your inputthumb.gif
  • conurusconurus Registered Users Posts: 15 Big grins
    edited May 5, 2007
    Extended warranties are insurance policies. They are not called as such due to legal issues. They priced these high enough that they can replace the mechandise if it fails during the warranty period.
    Bo-Ming
    conurus - world's first independent lens mount conversion with autofocus and auto aperture
  • kevnm67kevnm67 Registered Users Posts: 4 Beginner grinner
    edited May 10, 2007
    conurus wrote:
    Extended warranties are insurance policies. They are not called as such due to legal issues. They priced these high enough that they can replace the mechandise if it fails during the warranty period.

    So are they worth investing in?
  • TelecorderTelecorder Registered Users Posts: 73 Big grins
    edited May 11, 2007
    Warranty Extensions
    kevnm67 wrote:
    So are they worth investing in?
    Investing? Not really. As another poster stated - its an insurance policy to protect your investment for future potential warranty issues.

    First off - with very few exceptions, an extended warranty is only for manufacturer defects/failures -- not for accidents or user-induced damages.

    Second, be careful if/when relying on home owner's insurance policies for coverages. A lot of folks have found their premiums going sky high or coverage cancelled after claims.

    Personally, I purchase Mack warranties for my cameras at usually ~$20-30 for a 5-year transferrable warranty. They're sold through a lot of vendors such as B&H Photo and Cameta Camera uses them for their store warranties on their demo systems sold. While there have been a (relatively) few postings of problems with Mack warranties, their longevity of >30-years and continued offering by reputable firms such as BHPhoto/Cameta etc are adequate assurance for me.

    Others will state that the odds of having to use a warranty are slim and are more of a money maker for the seller, recognize that the average cost for a digital repair evaluation is usually $150 -- well in excess of the warranty cost.

    Be aware that the Mack warranty has to be purchased within 30-days of the camera's purchase (not neccessarily where the camera was purchased) and, for warranty repairs, must be submitted within their web posted submittal guidelines. A recent post on a Mack claim was posted at: http://www.dcresource.com/forums/showthread.php?p=222123&posted=1#post222123

    And, Henry from BH Photo made this comment about Mack warranties...
    http://forums.dpreview.com/forums/read.asp?forum=1018&message=21214643
    In the end, its up to you to determine if insurance is appropriate for your purchase...thumb.gif
    Telecorder (Dave)
    Apple Valley, CA
    D50-BIGMA-70-300VRII-35f2D-18-70DX-FZ30
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  • jonh68jonh68 Registered Users Posts: 2,711 Major grins
    edited May 16, 2007
    Put the money you would spend on a EW and put into a money market account. Whe you buy another product and they offer an EW, put that money in a MM account. You will have enough to insure the product yourself and you will get a small return. By the time the normal warranty expires, you still have the money and you could probably by a replacement cheaper than what the extended warranty was.
  • TelecorderTelecorder Registered Users Posts: 73 Big grins
    edited May 17, 2007
    IMHO, -- Not really...
    jonh68 wrote:
    Put the money you would spend on a EW and put into a money market account. Whe you buy another product and they offer an EW, put that money in a MM account. You will have enough to insure the product yourself and you will get a small return. By the time the normal warranty expires, you still have the money and you could probably by a replacement cheaper than what the extended warranty was.

    Hmmm... let's see... $30 in a money market account for one year at 6%, compounding daily, will yield $31.85; for five years $40.49; ... $100 in the same five-year account would only yield $134.98

    For those who prefer 'risk-aversion insurance', a compentent, low cost EW can possibly be worth the minimal ~10% of the purchase price. Individuals each have their own threshold of desired comfort. Due diligence, an understanding of the risks involved, what is & isn't covered, et al come into play and should be carefully evaluated. Some feel EW are generally a bad investment but with repair evaluation fees running to $150 or more, a low cost EW makes more sense to me than a money market account investment.

    Opinions vary greatly, of course...
    Telecorder (Dave)
    Apple Valley, CA
    D50-BIGMA-70-300VRII-35f2D-18-70DX-FZ30
    My SmugMug Image Galleries
    My Nikonian Image Galleries
  • cwphotoscwphotos Registered Users Posts: 763 Major grins
    edited May 17, 2007
    I just had to send my XT in to Mack for repair. Well worth it. A mere two week turn around. Thank the Lord for friends with spare dSLRs I could borrow in that time. :D
    ====My Gear=====
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  • jonh68jonh68 Registered Users Posts: 2,711 Major grins
    edited May 17, 2007
    Hmmm... let's see... $30 in a money market account for one year at 6%, compounding daily, will yield $31.85; for five years $40.49; ... $100 in the same five-year account would only yield $134.98

    Hmm.. let's see. Since EW are money makers for the company issuing them and the odds are stacked in their favor, let's do some additional thinkiing on this. $30 for five years is 40.49. Not making a claim on the EW, you are out $40. If you buy EW for other items and you don't have a claim on them as well, it adds up more. If you have 10 items and you pay yourself the EW instead of the company, the chances are you can pay for the repairs on oen of them yourself because the odds of all ten products breaking is minimal. With the way electronics are always coming down in price, by the time many electronics lose their warranty, their value has decreased and it sometimes make more sense to buy a replacement than get it fixed. It depends on the item you have. Getting a warranty or insurance on an expensive piece of glass makes sense. Getting one on a camera doesn't when we are getting the performance out of a $600 camera now that cost 2000-3000 dollars 3 years ago.

    I wasn't implying you would get rich of this. I am stating since the odds are not good of actually needing an EW, you get to keep YOUR money because you will never again see that money if it's put in to an EW.
  • MarcellaLMarcellaL Registered Users Posts: 3 Beginner grinner
    edited May 24, 2007
    Hi, I was thinking about it for a long time and I had finally bought one in a tech support site that helped before to fix some of my problems. When I saw the banner I just clicked on it and the prices seemed very reasonable. Just take a look and decide for youself - Extended Warranties

    Let me know, I would like to know if it was a good decision or not.
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