Extended Warranties, Are They Worth It?

As you do your holiday shopping, the question always comes up when you're buying electronics and other merchandise. Should you buy extended warranty? 

Depends on who you talk to, a new consumer report says the answer to the question is “no.”   But others say it's worth every extra penny. Sperry's TV Service has been extra busy these days,around 500 TV repair requests have been coming in a month.

With the holiday season just around the corner,  Sperry's says buying an extended service warranty on a big purchase like a plasma TV is well worth it. “I think it's a benefit it's an insurance policy is a piece of mind to the consumer in the event they do have a failure there won't be any cost to them,” says Sperry.

However Consumer Reports would disagree, according to their recent report on extended warranties they are advising shoppers to not purchase them.   They say it's not necessary because the cost is high and in the time the warranty is extended the chances are low anything will go wrong with your purchase.  

But Sperry's TV says they see first hand what could happen. “We are seeing a tremendous increase in business as a result of these large screen technology such as this start to fail.”  The Consumer Report says extended warranties for items like big screens can cost you up to 400 dollars.   And now since the price of electronics have come down many sales associates will push the purchase of these plans even more.  Sperry's says 400 dollars is worth it when the cost of repair could be in the thousands.   They suggest to always go with a good name brand and to consider the long term of your purchase. “if it's a brand name you haven't heard of that could be a brand with no parts available or support available.”  Consumer Reports did say you may want to look into an extended warranty for rear-projection TVs and apple computers because the technical support on those items only lasts around 90 days.  

For more information: www.consumerreports.org