World of Money

wordpress

Month: April 2017

We purchased an extended warranty

Published / by momadmin

It covered everything except consumables (belts, tires, brakepads etc.) when we bought the Honda pilot which had 30,000 miles on it and covered up to 150,000 miles. It was $700. I didn’t want to do it, but DH made a valid point: if something happened to this vehicle, would we be more or less likely to have the $ to cover it when it happened (particularly since this is our only really road-worthy vehicle.)

At the time we weren’t even on the DR plan, so DH’s point made sense. I’m glad we did. We have had to put the warranty to use, technically speaking, we are at about breakeven, but what it bought us more than that, was peace of mind, similar to BS #1.

We also bought a warranty for our laptop computer. $50 for two years, and it covered everything. We’ve used it twice and the $50 versus having to spend $400-500 to replace the computer, or even replace the hard drive for whatever that would have cost, were well worth it.

When I bought the kids’ iPods 5 years ago at Walmart, I spent $20 each and bought an extended “warranty.” The company Walmart uses is a scam, and magically, nothing is ever covered. I wouldn’t buy an EW with Walmart unless my life depended on it. And even then, I’d think hard.

In hindsight, our warranties have cost us 5-10% of replacement costs, and covered everything. For a big ticket item, like a car, I’d probably get it. For a computer, if I had $ in BS1, and I knew I’d only use it for emergencies, maybe not. For smaller electronics, or items which could be replaced for less than $300, definitely not.