Extended warranties seem
like such
a great buy..do they not ?
You buy a new computer and you can have all
of the protection that you need to insure that your computer
will be "covered" in case of a problem.
If your computer refused
to power up for instance, you can package it up, ship it
off to the place where you purchased it and
it will be fixed and returned to you...RIGHT?? Not necessarily!
Let's look further into this using real world
scenarios:
1.) Joe Schmoe just purchased a new
$500.00 HP computer, that included the keyboard, mouse
and speakers. He already has a monitor at home, so he
has everything needed to surf the internet, and send
emails. When it's time to check out at the cash
register and pay for his computer, he is offered a
$50.00 service warranty. The warranty states that it:
"covers faulty hardware for a period of one year."
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What is that saying?
It
means that if Joe accidentally spills water on his
computer, and it no longer works, the repair will not be
covered under the extended warranty. Why ?
Because.... usually these
warranties do not cover "user neglect", which is what
the companies consider is the case if the user is
responsible for the failure of hardware. If Joe's
hard drive just stopped working and the computer
wouldn't boot, due to no fault of Joe Schmoe, the repair will
be honored by the warranty (although shipping of the
computer or hardware may or may not be an expense that
the servicer pays), it may come out of Joe's
pocket. It's best to check the extended warranty for
such details to avoid confusion in the event of a
problem.
2.) Jill Schmoe just purchased a $300.00
computer from the "Recession Computer Store". The
computer included Windows Vista, a keyboard, mouse and
non-expensive components - all housed inside of a light
aluminum case. Jill needs this computer to complete type
and print her homework, so nothing fancy is needed. Jill
goes to pay for her computer, and is offered a $150.00
extended service warranty, which will protect the PC in
case of faulty hardware being installed, and includes 30
days free tech support. ------------------------------------------------------------------------------------------------------------ The truth is,
the majority of computer problems with "new" computer
systems are software related, in other words software
issues created directly or indirectly, by the
user. In other words, hardware problems (that are
actually covered under the
terms of extended warranty agreements) are not
very common, so paying extra for an extended warranty in
hopes of receiving software support is not wise.
Software problems not covered
under such warranties are: data loss, viruses, spyware,
damage from viruses or spyware, crashes due to third
party software or configuration issues, etc. If a
hardware component fails within the same year of the
purchase for no fault of the user, it will be covered
under the manufacturer's warranty, so the $150.00
coverage is useless in most cases.
Since Jill's computer only costed
$300.00, would it make financial sense to pay $150.00 -
or half the price of the computer, for a contract that
won't provide coverage the most likely problems? You're
absolutely right..it makes NO
sense!!
3.) Jack Schmoe purchased
a Home Theater Personal Computer from TekTime, for
$1,005.00, and an HTPC service warranty for $150.00 that
covers his computer for a year, which is above and
beyond what a typical warranty or extended warranty,
will provide.
With this warranty, Jack will
receive unlimited email/instant
messenger tech support/advice for one
year, 24 hours of technical phone support (2 hours
a month on average) and will only pay for mileage costs
if a tech needs to make a home visit (no hourly service charge if it is not a
user created problem).
------------------------------------------------------------------------------------------------------------ This
is a good scenario of when an extended warranty is
cost-effective, AND smart. Jack purchased an HTPC, which
has many features and capabilities, that may be
overwhelming for some people that haven't had one of
these systems before. He gets unlimited email and messenger support,
which will allow him to ask as
many questions as
he can think of, that pertain to
his system.
That even includes
ADVICE! Also, with email and messenger support, 2 hours
a month should be sufficient if he needs to speak with
someone on the
phone, since his questions may be
addressed by internet
communication alone.
Lastly, if a tech should be
dispatched to his home to troubleshoot his PC, he will
only be charged for mileage costs ($20-$25 per visit) if
the problem is not "user error", as opposed to paying
$75-$125.00 per hour for an on-site visit. This service
warranty is very good, especially considering the
low price ! When you take into consideration
the value that is being given in such a service
plan - it makes perfect sense.
So, we
have taken a look at three different types of
warranties, so you understand them, if just basically.
You should now have the opportunity to make an informed
decision on during your next computer or HTPC
purchase!
Extended warranties seem
like such
a great buy..do they not ?
You buy a new computer and you can have all
of the protection that you need to insure that your computer
will be "covered" in case of a problem.
