Is a getting an extended warranty worth it? at DVinfo.net

Bruce Pelley · February 12th, 2006, 11:25 PM

Please share your stories and advice with me!

Who offers them and can they be obtained other than when a GL-2 is first purchased?

What sort of coverage does one get,comprehensive,partial and are there any deductibles/exclusions involved?

What's the best bang for the buck if I choose to exercise that option?

What sort of questions do I need to ask,and what do I need to know about extended warranties?Never had one before.

I'd welcome any discussion on the topic pro,con or in-between.

Thanks,
Bruce

Don Palomaki · February 13th, 2006, 04:54 AM

The extended warranty is really a service agreement with a third party, only the maker can offer a warranty. It is a form of insurance, and makes a lot of money for the reseller. The dealer typically plays less than half the retail cost; e.g., a $400 four-year agreement on an under $3500 camcorder costs the reseller about $180 when bought from a distributor.

Statistically speaking it is not worth it. For the warranty company to survive, their cost to provide and service the agreement (parts, labor, shipping, plant, taxes, etc.) must be less than what they receive for the agreement, in the above case substantially less than $180 to allow for distributor mark-up, advertising, profit, etc.

If you cannot affort to spring for a repair if the need arises, but can spring for the insurance, it may be a good idea for you. But keep in mind:

Be sure you are comfortable that the agreement company will be in business when you need it, say 3.5 years from now.

Undestand the terms and conditions (carry-in, mail in, deductables, exclusions such an no professional use, turn-around time, etc.) up front.

Most equipment failures happen during the original warranty period or near the end of the equipment's useful life when replacement is about due anyway.

Over a large number of equipment items and time the agrrements will cost most people at least 3 to 4 times the monetary benefit they receive. However, a lucky (or perhaps unlucky) few buyers will make out on the agreement.

Travis Cossel · February 13th, 2006, 04:57 AM

Be very wary if you are shopping for a GL2 and you find a place selling them very inexpensively. These places will usually try to hit you up on the warranty and accessories options. A lot of them are also not at all on the honest side. FYI

Pete Bauer · February 13th, 2006, 07:19 AM

Here's a thread on extended warranties in our Taking Care of Business forum:
http://www.dvinfo.net/conf/showthread.php?t=34996

Boyd Ostroff · February 13th, 2006, 08:12 AM

Don makes some excellent points. Personally, I've been lucky. I've had a VX-2000 for over 4 years, a PDX-10 for 3 years and a Z1 for almost a year with absolutely no problems. A search for Mack warranties here yields some mixed reviews, so you'll have to draw your own conclusions there. The only extended warranties I've bought have been AppleCare coverage for laptop computers. These extend full Apple warranties and in one case it saved me a substantial amount on a repeated motherboard problem.

Something else to consider: some credit cards will double your manufacturer's warranty and even provide theft/breakage insurance by simply using them for the purchase. Check with your credit card company for details. American Express policy info is here: https://www124.americanexpress.com/c...assurance.jsp?

Quote:

Double Your Warranty — For example if you have a six-month manufacturer's warranty, we will add another six months. If you have a one-year manufacturer's warranty we will add one additional year.

But also read the full terms in the PDF, there are some caveats. For example, if you purchase equipment for business use with a personal card, it may not be covered.

Mike Teutsch · February 13th, 2006, 08:30 AM

I generally tell the sales people to go pound sand and never get extended warranties. They are just not worth the money.

However, when I bought my XL2 from B&H a while back, they offered a 4 year Mack warrantee for less than $200. That one I did take. Not only do I have an additional 4 years of coverage for most things, I have a warrantee to give to and include with a future sale. It will add value to the camera if I sell it.

Mike

Jim OMalley · February 13th, 2006, 04:46 PM

I've had the need to make a claim with the American Express extended warranty a couple of times (on non-video items), and have been generally happy with it. However, something to be aware of: Amex coverage doesn't start until the original warranty expires. For example -- if an item breaks in November and your original manufacturer's warranty is good until the end of December, Amex will not cover the repair costs if you wait until January to file a claim with them. Keep that in mind when Amex (or any other extended warranty company) asks you "When did your (camera, washing machine, etc.) start malfunctioning?"

February 12th, 2006, 11:25 PM	#1
Bruce Pelley Major Player Join Date: Feb 2003 Posts: 339	Is a getting an extended warranty worth it? Please share your stories and advice with me! Who offers them and can they be obtained other than when a GL-2 is first purchased? What sort of coverage does one get,comprehensive,partial and are there any deductibles/exclusions involved? What's the best bang for the buck if I choose to exercise that option? What sort of questions do I need to ask,and what do I need to know about extended warranties?Never had one before. I'd welcome any discussion on the topic pro,con or in-between. Thanks, Bruce

February 13th, 2006, 04:54 AM	#2
Don Palomaki Wrangler Join Date: Sep 2001 Location: Northern VA Posts: 4,487	The extended warranty is really a service agreement with a third party, only the maker can offer a warranty. It is a form of insurance, and makes a lot of money for the reseller. The dealer typically plays less than half the retail cost; e.g., a $400 four-year agreement on an under $3500 camcorder costs the reseller about $180 when bought from a distributor. Statistically speaking it is not worth it. For the warranty company to survive, their cost to provide and service the agreement (parts, labor, shipping, plant, taxes, etc.) must be less than what they receive for the agreement, in the above case substantially less than $180 to allow for distributor mark-up, advertising, profit, etc. If you cannot affort to spring for a repair if the need arises, but can spring for the insurance, it may be a good idea for you. But keep in mind: Be sure you are comfortable that the agreement company will be in business when you need it, say 3.5 years from now. Undestand the terms and conditions (carry-in, mail in, deductables, exclusions such an no professional use, turn-around time, etc.) up front. Most equipment failures happen during the original warranty period or near the end of the equipment's useful life when replacement is about due anyway. Over a large number of equipment items and time the agrrements will cost most people at least 3 to 4 times the monetary benefit they receive. However, a lucky (or perhaps unlucky) few buyers will make out on the agreement. __________________ dpalomaki@dspalomaki.com

February 13th, 2006, 04:57 AM	#3
Travis Cossel Inner Circle Join Date: Jan 2004 Location: Miami, FL Posts: 2,933	Be very wary if you are shopping for a GL2 and you find a place selling them very inexpensively. These places will usually try to hit you up on the warranty and accessories options. A lot of them are also not at all on the honest side. FYI __________________ Black Label Films www.blacklabelweddingfilms.com

February 13th, 2006, 07:19 AM	#4
Pete Bauer Wrangler Join Date: May 2003 Location: Eagle River, AK Posts: 4,100	Here's a thread on extended warranties in our Taking Care of Business forum: http://www.dvinfo.net/conf/showthread.php?t=34996 __________________ Pete Bauer The most beautiful thing we can experience is the mysterious. It is the source of all true art and science. Albert Einstein Trying to solve a DV mystery? You may find the answer behind the SEARCH function ... or be able to join a discussion already in progress!

February 13th, 2006, 08:30 AM	#6
Mike Teutsch Inner Circle Join Date: Oct 2004 Location: Port St. Lucie, Florida Posts: 2,614	I generally tell the sales people to go pound sand and never get extended warranties. They are just not worth the money. However, when I bought my XL2 from B&H a while back, they offered a 4 year Mack warrantee for less than $200. That one I did take. Not only do I have an additional 4 years of coverage for most things, I have a warrantee to give to and include with a future sale. It will add value to the camera if I sell it. Mike __________________ Chapter one, line one. The BH.

February 13th, 2006, 04:46 PM	#7
Jim OMalley Regular Crew Join Date: Dec 2003 Location: New Jersey Posts: 81	I've had the need to make a claim with the American Express extended warranty a couple of times (on non-video items), and have been generally happy with it. However, something to be aware of: Amex coverage doesn't start until the original warranty expires. For example -- if an item breaks in November and your original manufacturer's warranty is good until the end of December, Amex will not cover the repair costs if you wait until January to file a claim with them. Keep that in mind when Amex (or any other extended warranty company) asks you "When did your (camera, washing machine, etc.) start malfunctioning?" Last edited by Jim OMalley; February 13th, 2006 at 09:39 PM.