Q&A: Extended warranties
When purchasing technology I’m always unsure whether or not I should take on an extended warranty. When are they worthwhile? Will they help save on business costs?
Extended warranties come in all shapes and sizes, but they’re all based on the same concept: pay more upfront for a longer period of protection against failures or problems down the track.
The good points
Extended warranties are worth considering in the following situations:
The very cheap extension
Some PC makers will sell warranty extensions on their own machines very inexpensively when the PC is sold. If you’re spending $1,500 and the company offers to increase the warranty from one year to three years for a small amount of money, then taking the extension is worth considering.
Unlike desktop machines, most notebook PCs are used in a number of different of locations, increasing the chance of damage. They’re also generally more expensive so an extended warranty can make sense here, especially if you travel a great deal with the machine.
A number of vendors offer extended warranties where they’ll replace the item if it fails instead of making you wait for repairs. If the item you’re buying would normally require shipping and a long wait in the event of a problem, and if you can't be without the equipment for a long period of time, then this has value.
The very risk-averse
For those people who hate the idea of their PC failing and plan to keep using their computer for many years, an extended warranty may make sense. It’s a question of whether or not you’re prepared to spend money to have peace of mind.
When purchasing an extended warranty you must:
Published on: Monday, July 12, 2010