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Consumer Reports: Don't Buy the Extended Warranty (Unless It's AppleCare)

Consumer Reports: Don't Buy the Extended Warranty (Unless It's AppleCare)

by , 2:25 PM EST, November 16th, 2006

Consumer Reports published a report urging its readers to avoid all extended warranties with two exceptions: AppleCare for Macintosh computers and extended warranties for rear-projection microdisplay TVs. The magazine recommended extended warranties for these specific TVs due to a higher repair rate, while the company said that Apple's policy of offering only 90 days of phone support for its Macs gives AppleCare value to those buying Macs.

"This holiday season," said the report, "shoppers are expected to spend a whopping $1.6 billion on extended warranties for laptops, flat-screen TVs, other electronics, and appliances. And almost all of it will be money down the drain."

The magazine reached this position based on failure/repair rates throughout a variety of industries, and from comparing the cost of repairs to the cost of the cost of the extended warranty. The conclusion was that most products that fail do so outside of even the extended warranty period, and that more often than not the price of the repair was the same or less than the price of an extended warranty.

Accordingly, don't get the extended warranty.

Unless:

"There are two caveats to our just-say-no advice," said the report. "It's worth considering an extended warranty if you're buying a rear-projection microdisplay TV. Repair costs can be high, and these sets have been three times more likely to need repairs than other types of TVs. We also think it may be wise to get an extended warranty (which includes extended tech support) if you're buying an Apple computer, because they come with only 90 days of phone tech support."

The full report at ConsumerReports.org has charts on repair rates and more information on its conclusions.

Digg!

Observer Comments

Show: Subjects Only | Full Comments
Close Name:brett_x Posts: 322 Joined: 24 Jan 2006
Subject: Hmmm

So they consider the fact that Apple has an inferior standard support agreement to be a reason to invest further into Apple? Did they factor in that you can call Apple even if you don't have a support agreement and pay "per incident"?

Don't get me wrong, I actually do buy Applecare.. but not for the tech support. I buy it for piece of mind and the added resale value when I sell the machine 2 years into owning it.

Just be sure to never buy ANY 3rd party warranty on ANYTHING.

Close Name:Guest
Subject: They forgot one thing...

You can purchase Apple care at anytime during that first year.

I tell newbies who buy their first mac to set iCal to open 11 months after the purchase and ask thenm if they need a warranty. If they haven't had to call or needed a repair they're probably good to go. The exception is a computer that gets moved a lot, like a laptop or is used by children, then you should purchase it within that first year.

Close Name:DaiMac Posts: 952 Joined: 29 Jun 2001
Subject: Yeah but you're still getting a Mac...

Even though I know there have been hardware issues with small numbers of Apple's recent machines, that's not uncommon among computer makers and in my experience truly catastrophic failures occur within 90 days or, as the statistics seems to bear out, after the extended warranty would expire anyway.

I've also found Apple quite reasonable on repair costs when I did have to pay them to fix things, and usually if there a problem is clearly caused by a defect they will replace the item. I've had them replace everything from powerbook logic boards to an iPod Mini FOC, usually because of a defect.

Anyway, given the security and stability advantages of using OSX, combined with the incredible degree of support available to mac users through both sites like TMO, MUGs, etc I can't believe that people really need to buy the warranty. Apple should give up on selling it and make it a selling point, bump the computer price a few bucks and they all come with 2 year warranties.

Won't happen, but one can dream

Close Name:dhp Posts: 182 Joined: 22 May 2003
Subject: re: They forgot one thing

Quote
Guest wrote:
I tell newbies who buy their first mac to set iCal to open 11 months after the purchase and ask thenm if they need a warranty.

That's good advice. I have never bought an extended warranty in my life, but the iMac G5 I bought a year ago has had three logic board replacements, two power supplies, and one-time replacements of the hard drive, optical drive, and LCD. I'm definitely buying AppleCare before it's too late.

In contrast, only one of the three other Macs I have owned has ever needed any repair at all, and that was covered under an Apple extended repair program.

Close Name:rwahrens Posts: 50 Joined: 19 Jul 2006
Subject: good advice

I bought a MacBook just after the Core Duo's came out, and bought AppleCare then. Reason? It's a laptop. I bought AppleCare for my G4 in 2002 also. Why? Phone support, just like CR says. Even if Apple gave a year's worth of phone support to go with the year physical warranty, it'd still be worth the extra support time.

Apple has a good habit of including just about any subject in that phone support. Got an issue with something ambiguous and don't really know the cause? Chances are, they'll help and not charge you if you have AppleCare.

I've never needed physical repair under AppleCare, but it's worth the price of admission just on the phone support alone. Three years of phone support? Just six calls in three years will cover the cost considering the $50 per call you'd pay if you didn't have AppleCare.

That's a bargain.

Close Name:Edison Carter Posts: 228 Joined: 10 Aug 2006
Subject: I buy AppleCare

I use my Macs for my business. AppleCare for me is a form of insurance, it is a cost of doing business. Same with ProCare.

Close Name:Guest
Subject:

>> Did they factor in that you can call Apple even if you don't have a support agreement and pay "per incident"?

You sure can -- for *fifty dollars* per incident

Close Name:jpfreeman Posts: 48 Joined: 12 Jan 2005
Subject:

Well, I generally buy AppleCare of a laptop and recommend the same for friends and family. On my current machine it has certainly been worth it.

12" PBG4 1.33 GHz

I've had it for two years. After the first year the HD failed. I had it replaced along with the display, which had a minor defect and was starting to show keyboard marks. Recently the HD failed again and I just had it replaced again. I call Apple for any computer related problem and generally they are very helpful. I plan to sell my PB six months before AppleCare expires. Having six months left on the AppleCare will allow me to get more for the machine and make up a lot of the cost of AppleCare by itself.

I can't remember details but I know I got my AppleCare money's worth on my previous laptop, a Pismo.

Close Name:Guest
Subject:

I just wish that Apple had screen and damage coverage, that is becoming standard for everyone else and an apple is just as likely as any other to be dropped or sat on.

Close Name:kenaustus Posts: 602 Joined: 27 Jun 2003
Subject:

I'm one that will always buy AppleCare. There have been a problem or two with most of the Macs I have owned (generally brand name HDs) and I figure that AppleCare has paid for itself.

On the HD side, Macs have SMART HDs and there is a small FREE app that will warn you if the drive is starting to have a problem. It's called SMARTReporter and is available at http://homepage.mac.com/julianmayer/. It gives you time to make urgent backups, which makes the free price worth it.

The other thing I like about AppleCare is the fact that I can call if I have a question. Since I'm as far from being a geek it's very nice to have and can be worth the full cost of AppleCare if you need help urgently in a business environment.

Close Name:rwahrens Posts: 50 Joined: 19 Jul 2006
Subject:

Quote
Anonymous wrote:
I just wish that Apple had screen and damage coverage, that is becoming standard for everyone else and an apple is just as likely as any other to be dropped or sat on.


Uh, they DO have screen and damage coverage, it's just limited to manufacturer defects, not if you damage it through misuse, just like most other warranties. It may be a laptop, but it's not gonna work if you throw it around, or sit on it. It cost you over a thousand bucks - take care of it!

Close Name:dmeroney Posts: 1 Joined: 20 Nov 2006
Subject: Accidental coverage

You mentioned that other manufacturers are offering accidental coverage. That's partially true. As a computer reseller, I know all about extended warranty and warranty renewals for dozens of manufacturers.

Some of the computer manufacturers such as HP and Toshiba are offer a standard warranty, extended warranty for defects, and accidental damage protection. The 3rd option is not available for all products and it definitely costs much more than the other options. Accidental damage is insurance and not warranty. You can get accidental damage coverage from some insurance brokerages and possible your credit card company.

Close Name:gslusher Posts: 2088 Joined: 13 Nov 2002
Subject: Re: Accidental coverage

Quote
dmeroney wrote:
Accidental damage is insurance and not warranty. You can get accidental damage coverage from some insurance brokerages and possible your credit card company.


I have a rider to my homeowner's policy that covers just about any damage to the computers that is not covered by warranty. It even covers software.

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