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Unwarranted
(By Steve McCracken for The Washington Post)
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Brue, a longtime consultant on manufacturing processes who helped implement General Electric Co.'s renowned quality programs in the 1990s, said that most basic electronic components are so well made "they won't fail in 100 years, much less three." According to quarterly customer satisfaction surveys compiled by the University of Michigan, consumers generally agree: Buyers of cars, computers and other durable goods are generally happier with their purchases now than at any time since 2000.
For these reasons, as well as the ever-falling replacement cost of most consumer products (just look at the collapse in DVD prices in the past five years), Consumer Reports recommends almost never buying an extended warranty, especially on automobiles.
But even Consumer Reports has made a few exceptions. Last year, for the first time, the magazine found that repairs on some products -- laptop PCs, treadmills and plasma TV sets -- were common enough and expensive enough that a decently priced extended warranty would make sense. Plasma televisions, the magazine said, run hot and are still considered a relatively new consumer technology.
Plus, dragging bulky, large-screen televisions into a repair shop is impractical for most consumers. Many extended service warranty programs offer in-home repairs.
For Weiner, the owner of a new LCD television set, a deciding factor on the extended warranty is that the package included home repair, saving him from the possibility of having to haul the set to the shop.
"I don't want to hassle with that," he said.
Cimino said that customers should always consider how -- and by whom -- a product will be used. For example, the basic electronics that run a Nintendo Game Boy will last until a child loses interest. The buttons, however, are a different matter altogether and can break far more easily. Usually, on such products, Circuit City's extended warranty will simply replace the item.
Even cynics such as Strasfeld buys extended warranties on some products.
"Just the fax machine," he said. "Ours get such heavy usage, they always break."
