Have you ever wondered 
if that extended appliance or electronic warranty you are pressured into considering is worth anything at all?
We get this question all the time, when we shop for appliances on behalf of our relocation clients. If you are considering such a warranty, read this important post.
On a United flight earlier this month, we grabbed a Wall Street Journal and read where Wal-Mart has begun selling extended warranties on higher-priced items in a mighty move that has been heavily criticized by consumer advocates. Is this a waste of money? Yes, according to Consumer Reports spokesperson Lauren Hackett:
"Many of these are established, mature technologies; they usually don't break down. And if they do, we find that it is generally within the manufacturer's warranty."
According to the article, the reliability of some new technologies such as big-screen, plasma TVs isn't yet known, so Consumer Reports has yet to issue a recommendation on whether extended warranties are needed in those cases. The warranty market has long been cultivated by beloved Best Buy and less-popular Circuit City-- profit margins on warranties range from 40% to 80%-- because consumers never use them.
(a message from the Editor -- we're not posting a link to the on-line article, because WSJ makes this very difficult. If you're a member, just use the phrase "Wal-Mart Expands Warranty Business." into the WSJ Online search fields. -- jt)
We are curious, do any OrganizingLA Blog readers have an warranty success stories? We'd love to hear comments.
