Extended Warranty

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Webgirl Wendy - 11 May 2008 04:27 GMT

Given that digital cameras depreciate rapidly and that some repairs may
be very costly, should I invest in the extended warranty when purchasing
a new DSLR camera body?

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Joseph Meehan - 11 May 2008 15:13 GMT

I would say the real question is should you invest in an extended
warranty (they are really insurance policies).

Consider that on average over 50% of what you pay goes to profit the
salesman, the store, the insurance company and others in the chain. The
remaining 50% goes for the servicing of the insurance policy. Of that some
part goes to pay the overhead of the insurance company and profits. Some
small part of what you pay goes into the fund that has to pay for any
covered repairs. In addition, if you have a covered problem, they you are
stuck with whatever remedy they chose.

Save your money, put it in a savings account and know that over time you
will have more money going in than coming out of that account. In other
words, self insure and keep the profits and overhead that would otherwise go
to the insurance company, salesman and store.

Same goes to all such extended warranties. Self insure and keep the
difference.

> Given that digital cameras depreciate rapidly and that some repairs may
> be very costly, should I invest in the extended warranty when purchasing
> a new DSLR camera body?

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Joseph Meehan

Dia 's Muire duit

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ray - 11 May 2008 15:15 GMT

> Given that digital cameras depreciate rapidly and that some repairs may
> be very costly, should I invest in the extended warranty when purchasing
> a new DSLR camera body?
>
> <html><http://joanlally.lbbhost.com/sigs/sig30.html><html>

No. Basically the only folks who make out on extended warranties are the
folks selling them - that's why they push so hard.

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Jürgen Exner - 11 May 2008 15:22 GMT

>Given that digital cameras depreciate rapidly and that some repairs may
>be very costly, should I invest in the extended warranty when purchasing
>a new DSLR camera body?

Why would this repair cost insurance affect the rapid depreciation?

jue

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John O'Flaherty - 12 May 2008 02:42 GMT

>>Given that digital cameras depreciate rapidly and that some repairs may
>>be very costly, should I invest in the extended warranty when purchasing
>>a new DSLR camera body?
>
>Why would this repair cost insurance affect the rapid depreciation?

The rapid depreciation would affect the decision to insure: against,
vs. costly repairs: for.

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John

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C J Campbell - 11 May 2008 16:43 GMT

Why? Planning on smashing the camera and getting a new one when it
depreciates enough? :-)

No, generally these extended warranties are far more expensive than
regular insurance.

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Waddling Eagle
World Famous Flight Instructor

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Dave Cohen - 12 May 2008 03:43 GMT

>> Given that digital cameras depreciate rapidly and that some repairs may
>> be very costly, should I invest in the extended warranty when purchasing
[quoted text clipped - 7 lines]
> No, generally these extended warranties are far more expensive than
> regular insurance.

In general I agree. When I got a new computer, I was asked if I wanted
an extended warranty. I said no. Then the salesman said he couldn't
offer a cash discount, but could give the extended warranty for free.
Since there seemed to be no catch (and the machine was already on sale),
I of course accepted. Nine months later the machine wouldn't power up.
Fixed for free so, yes, if the purchase goes belly up purchasing
extended warranty pays off. But the statistics are on the side of the
seller and I wouldn't pay for one. However, based on that one experience
it might be worth seeing if you can strike some sort of a bargain.
Dave Cohen

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Allen - 12 May 2008 16:08 GMT

>>> Given that digital cameras depreciate rapidly and that some repairs may
>>> be very costly, should I invest in the extended warranty when purchasing
[quoted text clipped - 18 lines]
> it might be worth seeing if you can strike some sort of a bargain.
> Dave Cohen

My usual reply when a salesman tries to sell me an extended warranty is
"if your product needs it, I don't believe I'll buy your product". I
make one exception, though--automobiles. After having ridiculous
expensekeeping one car on the road after the various warranties expires
(e. g., a new transmission at 38,000 miles) I starting buying extended
warranties and have come out ahead. I just traded in a Hinda Odyssey
with 98,000 miles on it; I went back and checked and found I had spent
$18 for repairs over the life of the car, which included, among other
things, a new transmission at 87,000 miles. In short, I think I would
sum up my policy as looking at the price of an extended warranty vs. the
replacement cost and the expected life of the product. Computers, for
instance, have a short lifespan, not because of failure but because of
obsolescence. Most EWs are voided if the owner does any work on the
device. Considering how many internal hard drives, new burners, and
additional memory I've added to my various machines, extended warranties
would have been useless no matter what happened.
Allen

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