Extended Service Plans: Why you should or should not buy them

Every day, millions of dollars of electronics are sold throughout the US. And each and every day, there is a salesperson trying to sell you some sort of extended warranty. The problem is deciphering when and for what products you should buy for, and what products are completely not worth the cost. There is also a decipherable difference between the costs of Service Plans offered by each individual company. There are several steps and measures to take before deciding. Hopefully, this will help those of you who are looking for some guidance.

Firstly, identify the product which you will be buying. If it's a big ticket item (high dollar amount), chances are the warranty will be a fairly hefty price, BUT will also be more worth your while.

Second, is the warranty coming from the manufacturer or the store? If it's through the manufacturer, you are getting the real deal. Solid prices for work done by the same guys who made the product. If the warranty is through the store, you may have a harder time getting your product fixed, because it is the store paying for your repair. Certain stores do not include all of the limitations in the warranty information they give you because they hope that you never use it!

Third, does the store have an instore service? If so, they may try to redirect you through that. This can be either good or bad. It will be good if they will get the product out faster, or if they will do work onsite as covered under the warranty, but it's not good at all if they try to charge you beyond the warranty, UNLESS it is software related.

Fourth, ask the difference between warranties!

Fifth, judge the salesperson. Ask if they've seen certain issues come in (though most will NOT admit any problems with their product), ask if they believe in the warranty or if they have bought one before. If the salesperson gives you a related incident that makes them believe in the warranty, it might just be worth it.

Sixth, think about your own use. Will your computer ever move? Will it be around children, animals, heat, the ocean/sand, etc? Would you be willing to pay for the parts to fix the computer, or would you end up buying a whole new computer in the event that it failed?

On a final note: Even if the salesperson works on commission, they may still just be looking out for your needs! Spend enough time talking to someone and you can tell whether they are there to help you or to make a paycheck.

I hope that this helps you in your decision making, and that you make a wise decision!