Extra warranty worth it?

Discussion in 'Digital Cameras' started by John Wilson, Jul 23, 2003.

  1. John Wilson

    John Wilson Guest

    Hello folks.

    I'm about ready to make a purchase of a Canon 10D camera and was wondering
    about the purchase of an extended warranty that is being offered from
    the place that I may purchase from. They are charging $450 for a 2 year
    warranty, and they basically state that they'd cover just about anything;
    from accidental damage (dropping, being sunk in water, etc.). Is something
    like this really worth the $450? Do people actually buy stuff like this?

    This is my first big-budget camera equipment purchase, and $450 is a good
    chunk of cash... the folks at the store swear by it (naturally), but I
    was hoping to get some input from a 3rd party.

    Any comments would be appreciated.

    Thanks,
    John
     
    John Wilson, Jul 23, 2003
    #1
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  2. John Wilson

    EdO Guest

    Depends on your threshold of belief in the camera and whether you are
    prone to destroy items in your possession.

    Is that 2 year warranty in addition to the manufactures warranty?

    The company make big bucks selling this insurance - as a percentage
    probably twice the amount of percentage profit on the camera and no
    inventory needed. I suspect the salesman get more commission on the
    insurance than the camera.

    Sounds to me rather high unless this camera is prone to fail. Your
    could get comparable insurance on you car for about the same or less money.

    Do you have comparable insurance on your current cameras, CD players,
    yard tractor, (you get the idea).

    It all boils down to you place your bet and hope you lose ( just like
    most insurance).

    Ed
     
    EdO, Jul 23, 2003
    #2
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  3. John Wilson

    Dave Weller Guest

    No! Never !
     
    Dave Weller, Jul 23, 2003
    #3
  4. John Wilson

    Mark B. Guest

    Wow, that's about 1/3 of the price of the camera. If you really feel
    there's a good chance of something happening, go for it. Be sure to get a
    copy of the warranty and read it very carefully first. You're probably
    better off just adding it to your home insurance. Extended warranties are
    one reason I avoid buying big-ticket items at Best Buy (I know this probably
    isn't where you're buying) - they try to cram the warranty down your throat.
    My D30 came with an extended Mack warranty when I bought it from B&H, but it
    was a promotion and I wouldn't normally have paid extra for it.

    Mark
     
    Mark B., Jul 23, 2003
    #4
  5. John Wilson

    itieu Guest

    Take the $450.00 and buy another camera.

    itieu
     
    itieu, Jul 23, 2003
    #5
  6. John Wilson

    gr Guest

    Run away.

    Extended warranties on electronics like that are almost always an incredible
    rip-off. The real insurance value is probably about 10-20% of what the store
    is charging you. They make big profits on selling extended warranties, and
    the salesmen also get big commissions for selling them.

    But even if the insurance premium was fair (which at $450 it almost
    certainly isn't), you have to ask yourself if you really need it. Insurance
    has overhead costs + profit margins associated with it. Statistically, it's
    like gambling: the house will always win if you play enough.

    If you can't afford to replace an item, such as a home or a car, then
    insurance makes sense. But for consumables that you can afford to replace
    yourself, you may as well be your own insurer. Even if you lose a couple of
    times, you'll come out ahead far more often.

    Keep your $450.
     
    gr, Jul 23, 2003
    #6
  7. I always tell people that an extended warranty on a digital camera that
    costs over $250 is usually a good idea - on a $1500 camera it's a REAL good
    idea.

    That amount however, is HIGH. My renter's insurance gives me an "almost"
    all-inclusive policy for only around $5.00 a month on a 10D. The store I
    purchased it from then gave me a warranty that covers defects which covers
    the rest for around $120 for 4 years. MUCH better than the price you're
    being quoted.

    I may shop around at some other stores to see if any have good but cheap
    store warranties, then check your renter's or home owner's company to see
    what kind of policies they offer for this type of item, before making the
    purchase.


    Greg
    www.digitalcamerabasics.com
     
    DigitalCameraBasics, Jul 23, 2003
    #7
  8. I have a Gold Mastercard that doubles new product warranties of one year
    or less.

    My Platinum Visa doubles the new product warranty up to an additional
    year for new product warranties of three years or less.

    Now, those are the kinds of warranties to get.....don't pay any extra for
    what you can get for free.

    Regards,
    John E. Golden
     
    John E. Golden, Jul 23, 2003
    #8
  9. John Wilson

    mcgyverjones Guest

    What will the camera be worth in two years? Is it a no questions asked,
    exchange at the counter for a new unit deal? I doubt it, but at that price
    it should be.

    MJ
     
    mcgyverjones, Jul 23, 2003
    #9
  10. John Wilson

    John Wilson Guest

    Hello all,

    Thank you all for your replies to my initial questions regarding the
    pros/cons of an additional warranty. It turns out that I purchased
    my equipment from another dealer, who too offered a -3- year extended
    warranty, for all of $85... instead of the $450 from my local
    retailer for a 2 year warranty.

    For anyone who's interested, the latter retailer was B&H Photo located
    in NY. I've not ever purchased from them before, but I must say
    that my experience with them, in regard to my Canon 10D purchase
    and related items, was a pleasure.

    Once again, thank you all for your replies and suggestions. It was all
    greatly appreciated.

    - John
     
    John Wilson, Jul 26, 2003
    #10
  11. John Wilson

    Mark B. Guest

    B&H is tops. You can't go wrong with them.

    Mark
     
    Mark B., Jul 28, 2003
    #11
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