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Old Dec 7, 2005, 8:50 PM   #1
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I just ordered the 20D and 17-85mm IS USM lens. The salesman convinced me to buy a 4 year warranty for both the body and lens for $99. Inever buy extended warranties. What changed my decision this time was that a year ago, one of my Canon cameras broke, 2 months after the Canon warranty ended. It was a huge hassle trying to get it fixed, not to mention expensive. I have owned five or six Canon's at one time or another. That camera was the only time it ever happened. Maybe it was fluke. I don't know.

So, did I make the right decision this time? Or did I just handover $100 additional profit to the dealer?
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Old Dec 7, 2005, 9:09 PM   #2
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ianlin wrote:
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So, did I make the right decision this time? Or did I just handover $100 additional profit to the dealer?
You probably won't know for 4 years/
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Old Dec 7, 2005, 9:24 PM   #3
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here is the deal, I work for a big box company in canada. We push extended warranties in a huge way. It IS a way for our company to make money. And we hope you never need it. We also hope that you lose the lense, or the reciept, or forget that you paid the extra money for the warranty, and never take us up on it. That is how we make money. Especially in today's market with everyone selling for the lowest price "guaranteed".

The warranty usually is something more that is offered by the original manufactuer, and for a longer period of time than was offered. At the end of the day, if something were to go wrong with any gear you may have bought, you should be covered (unless physically damaged....like dropping it) And when you break down the 99 bucks you paid over 4 years?? it is like 25 a year, or dollars a month.

Now does it seem worth it?
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Old Dec 8, 2005, 11:31 AM   #4
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Nope.



In college, I worked for Circuit City selling those on computers and small electronics. We pushed the as "performance guarntees". CC is known as one of the more service oriented electronics stores (as opposed to best buy, Frys, etc.)

What you're doing is betting that your purchase will fail within the limited parameters set out by the contract. Further, since you've already paid for service in advance, you're hoping they repair it to your satisfaction. Not a good position to be in.
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Old Dec 8, 2005, 11:50 AM   #5
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Nice to hear two people in the industry confirm my believe.

If you feel the product is well made, then you wasted your money. You purchased insurance... it is always a statistics game. What is the probability that it will fail in the time the insurance covers? Is it worth paying to guarrenty a repair for that chance of a failure?

I look at extended warrenties like this. If the stores push them as hard as they do, they must be making money at them. If not, they wouldn't offer them. If they only made some money they would offer them (competitive advantage kinda thing) but they wouldn't "push them". Since they push them really hard, they clearly *want* you to buy them. That is either because it helps their reputation (others don't offer this, for example. But that clearly isn't true) or because they make so much money on them that it's worth harassing the customer with multiple requests to buy one.

The only thing that makes sense is the last situation... confirmed by the previous two posters.

Now. If its a "for any reason" warrenty, and your rough on your equipment, then it could be worth it to you. You have kids and they are always getting into your stuff. Then your situation shifts the odds that you'll use it into your favor. But for most people they never use it and its pure profit to the company. If the product was so badily made that it often needed repairs (i.e. you really need that warrenty) the store selling the product would push back on the manufacturer to fix it.

Eric
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Old Dec 8, 2005, 1:12 PM   #6
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Thanks everyone for your input. I am still not sure wether I made the right decision. Although I completely agree that dealers push it because it is a profit maker for them. It benifits them more than it does me. However, my decision was influenced by my experience last year of trying to get an out of warranty camera fixed. I sure wish I had bought extended warranty then!

One of two things can happenin the next4 years: the cameradoes not break, and I feel like a fool for having insurance I did not need; Or, the camera breaks and I feel all smug and self-congratulatory for having insurance to cover the repair. I didnot buy the insurance hoping I would use it. Given the choice, I would rather the cameradoes not break.
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Old Dec 8, 2005, 7:16 PM   #7
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Well, one extended warranty isn't going to kill you.

But if you buy extended warranties on most of your purchases, you'll probably be paying more for extended warranties than what your likely to recoup from defective merchandise.

The most likely scenario for your camera is:

1) slight chance you might drop it one day, specially if you don't make a habit of wearing a camera strap.

2) another slight chance it could be lost or stolen

Your better off buying general camera insurance that will insure you against accidental dropping or your camera being lost or stolen.

Sometimes your home insurance will insure against stealing. Check your policy (or ask your agent).

-- Terry
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Old Dec 8, 2005, 9:53 PM   #8
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A salesman will tell you that the product is made to last the year, and that is that, and basically, if the product lasts the first 30 days or so, it will last the year, which is the common length of an manufactuer's warranty. After that year, the chance of malfunction will increase as time passes (its called the bathtub curve)

And it is all about opinion, Many people buy travel insurance etc, when they don't "need" it. The warranty, will cover "incase" of malfunction. And if you have benefitted from the extended coverage, on anything, you will swear by it.

As an example of being against the warranty (remember I sell them) I had my hp 812 in because the camera kept freezing, upon start up. That would mean the lense would not retract etc. The only way I could reset it, was to pop the battery door, and then close the door, making the lense retract, and then I could leave it alone. Anyhow, it never got fixed as the repair place, says the camera worked fine... and it did when I got it back, for a month anyhow, then it occurred again. Here I was hoping that they wouldn't be able to fix it, in time or for the proper cost, and I could put the investment of that camera (almost 600 when it first came out ...cdn... )towards a Canon 20d or something.. .I ended up having to save my money, and I still have the non working hp 812?? so again it is all opinion... there is no right or wrong... but it is a cash cow for the company selling it
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Old Dec 9, 2005, 9:50 PM   #9
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The fact that retailers push warranties aggressively seems to indicate that, statistically, they are more likely to make money than you are to save money. In other words, chance of equipment failure times cost of repairs is smaller than price of warranty. If that were not the case, retailers would statistically lose money when they sold you warranties.

http://camerastore.blogspot.com/2004...stics-and.html

Then again, it does buy you peace of mind. And no one would argue that insurance for your car and your health are good ideas. So there's more to it than simple statistics. Right?
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Old Dec 12, 2005, 7:57 AM   #10
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All insurance is, on average, a loosing proposition. The insurance companies pay out less than they take in - beyond profits, there are all the salaries for sales staff, underwriters, actuaries, ..., office space, telephones, equipment, ... But things do break down, and if it happens to you,you are not in the average situation.

I insure my house, car, and health because I cannot do without them and cannot replace them easily. I do not insure my toys - I can either replace them or do without them if they break. Thatis mybasis for deciding.
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