Extended Warranty: To Buy Or Not To Buy?

That is the question you will hear when buying your new HDTV. Consumer Reports, for one, thinks the answer you should give is a firm "no thanks," with a few exceptions. Their main rationale centers around the fact that flat-panel TVs in particular have a fairly low repair rate, although they single out microdisplay HDTVs as products that warrant a longer warranty. Apparently DLP and LCOS models have a fairly high repair rate and the repairs tend to be pretty pricey. And according to the experts at CR, even when your LCD or plasma does need fixed, the repair tends to be cheaper than what the warranty would have cost you.

Normally I'd agree with these guys. Nothing's more annoying than when you're buying some piece of electronics gear in a big box retailer and the sales guy tries to sell you an extended warranty because he says this particular product tends to have problems after the manufacturer's warranty runs out. This after he just got done selling you on how great this product is to begin with.

My personal experience, however, led me to spring for the extended warranty on my Panasonic plasma three months ago. I previously had an LG plasma that came with a two-year manufacturer's warranty and on which I did not add the extended version at my expense. The thing needed major repairs twice in those two years, both of which were fortunately covered under the original warranty but the second of which required the repair shop to put in an entirely new plasma panel (the lousy thing was in the shop for six weeks). But since it was under manufacturer's warranty, why should I have bought the extended? Simple - nobody offers a standard two-year warranty anymore. At least no manufacturer I know of. Had that been a standard one-year warranty, I would have had to pay out of pocket for the brand new panel, which would have cost at least twice what an extended warranty would have.

Decide for yourself - it's largely a piece of mind issue. I sleep better at night knowing that I'm covered for the next few years no matter what happens. But CR did have a really good piece of advice: check to see if your credit card company will extend the original manufacturer's warranty at no additional charge to you. Many do - and that's the best deal of all.