Are extended warranties necessary on electronics?

|
Are extended warranties necessary on electronics?
Team Clark is adamant that we will never write content influenced by or paid for by an advertiser. To support our work, we do make money from some links to companies and deals on our site. Learn more about our guarantee here.
Advertisement

Extended warranties are all the rage when you purchase electronics and many other popular items. But I am here to reiterate the refrain that they aren’t necessary.

Consumer Reports says that electronics seldom fail. In fact, TVs only fail at a three percent rate in the first four years of ownership. Why would anyone buy a warranty when you have a 97 percent that your TV will work for numerous years?

Most people have a strange psychology about what we’ll throw our money at. The Journal of Consumer Research found that people are more likely to buy a warranty on something they enjoy than on something they don’t. So a business owner may not buy a warranty on business equipment, but he or she will do so on a big-screen TV!

The reality is that extended warranties have massive costs and aren’t a good investment. For example, The New York Times found a popular Nikon camera where the warranty was 27 percent of the purchase price! For laptops, a warranty can be up a third of the price!

So before you go ahead and buy that extended warranty, I want you to do these two things:

  • Look at Consumer Reports’  record of reliability and buy brands/models that are historically most reliable.
  • Make your purchase on a credit card that automatically doubles the manufacturers’ own warranty. You’ll give yourself additional piece of mind without having to spend anything extra. This is a free way to get the job done. And you know I love free!
Advertisement
Clark Howard About the author:
Clark Howard is a consumer expert whose goal is to help you keep more of the money you make. His national radio show and website show you ways to put more money in your pocket, with advice you can trust. More about Clark
View More Articles
  • Show Comments Hide Comments