When you buy a new TV, you automatically get the pitch: “Would you like to buy the extended warranty?”
As we ramp up to the holiday shopping season, you’re likely to get pitches for extended warranties on more than just TVs. Electronics, appliances and other products are all fodder for the salepeople to push this insurance.
But the latest stats from the December issue of Consumer Reports are illuminating on the subject, and I want to show you why you don’t need that extended warranty on a TV or a laptop either.
Consumer Reports finds the failure rate of flat-screen TVs is 3 percent during the first four years of ownership. Their survey took a look at everything from premium brands to private labels. Even the failure rate of off-brands you’ve never heard of is typically only from 2 percent to 4 percent.
Panasonic was the least trouble-prone brand of flat-screen TV, with just a 2 percent failure rate over four years. Dynex, a Best Buy private label, had only a 3 percent failure rate. The most trouble-prone brand was Westinghouse, with a 7 percent failure rate.
Laptops, however, generally have a higher failure rate. Over three years of ownership, the failure rate of your average laptop is 11 percent. Even at that higher rate, it still does not warrant you buying a warranty.
One thing to note about Apple. The failure rate on Apple laptops is 6 percent, according to Consumer Reports. So you pay more, but it’s nearly twice as reliable as other brands of laptops. Some of the least reliable brands are Asus (13 percent failure rate over three years); and Dell, Lenovo, and Sony, all which have a 12 percent failure rate.
Don’t be guilted into buying an extended warranty when the numbers show it’s not necessary.
Consumer expert Clark Howard's column appears here each Thursday in conjunction with Deal Spotter, a weekly print section in The Atlanta Journal-Constitution. Find more answers to your consumer questions at Clark's website.
-- Clark Howard -- Save More, Spend Less, Avoid Rip-offs -- for the Atlanta Bargain Hunter blog
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