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Extended Service Contract - Is It Worth It?

Inevitably, when we make a major electronics purchase, we are asked if we want to buy the extended service contract. Penny-pinching consumers, myself included, often cringe at this question. But the truth is, that sometimes it is a good idea to fork over the extra cash as an investment of future peace of mind.

DLP and LCD Projection sets use a powerful bulb to illuminate the picture. These bulbs, like any other bulb, has a limited lifespan. Ranging in cost from $200 to over $400 for a replacement, these expendable items are actually covered under extended warranties. Parts for plasma sets are very expensive as well. And if parts are no longer available for your TV, then you will end up with a brand new set. Are you starting to see the value now?

Generally, you will come out ahead buying the extra coverage on televisions and other major electronics purchases, as all man-made things eventually fail. More often than not, electronics have a tendency to fail shortly after the manufacturers warranty runs out. When you look at the cost of parts alone for some repairs the up front costs are translated into the longevity of the device.

However, you will have to weigh the costs and benefits for other items for yourself. If you are a decent computer tech, then an extended service contract may not do you much good on a computer or laptop purchase. If you are a technician with access to technical resources and parts accounts, then you will be able to fix most problems yourself. Just use your best judgement and consider how often and how long you expect to use what you are buying.

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