Advantages of extended warranties with manufacturers
The arguments for and against taking out extended warranties have been a major talking point for anyone who buys a new piece of technology.
Although manufacturers take a great deal of time and care in producing the most robust and capable technology possible, things can and do go wrong.
So if your smart phone suddenly stops being smart or your laptop refuses to boot up, is an extended warranty worth the money?
The myths about extended warranties
The main accusation levelled at extended warranties is that they are the shop's way of making more money out of their customers. According to
consumeraffairs.com, industry sources put the profit margin on consumer electronics extended warranties at between 40 and 80%. While that may be
true in some circumstances, manufacturers extended warranties are often much cheaper and more economically viable than a shop warranty. A
manufacturer's extended warranty is specifically designed to cover your particular item and while yes, it may cost you a little more initially, it will give
you peace of mind that if your tech fails once the original warranty has run out, you are still covered.
That brings us neatly onto the second most popular myth - that manufacturers build in â€˜time bombs' into their goods designed to make them fail a
week after the original warranty has run out. Therefore, they persuade you to buy an expensive extended warranty, relying on your gullibility to believe
this myth to make more money out of you. Not true. The â€˜time bomb' idea is an urban myth that has become popular on the Internet but has no
basis in reality. If that was the case, every iPhone, laptop computer and MP3 player would fail at roughly the same time, which, to date, hasn't
happened. What does happen is real life. Phones get dropped, wet, battered and lost and computer chips do fail if exposed to heat or extreme cold.
What an extended manufacturer's warranty does is cover you for every eventuality, either repairing or replacing the faulty