I use my exercise bike almost daily. It is an important part of keeping in top physical shape. For those of you who know me, you know I am not in physical shape. However, if I didnât use the bike, I would be much worse off. I purchased my current bike about four years ago. It was one of the better (not the best) brands at the time. The salesperson convinced me to take the extended warranty because it included at-home repair service. As I remember, it added about 25 or 30 percent to the cost of the bike for an additional two years. For me that was a real stretch. As it turned out, I have had to call for service on the bike three times for repair of major drive parts on the machine. At this time I think I am ahead of the game on the exercise bike. In this case, it was worth the cost.
Is that always the case? According to Consumer Reports (consumerreports.org), most extended warranties are not worth it. Generally, they advise against purchasing extended warranties. From their research, service and repairs are not normally required during the extended warranty period. Retailers often make more money on the extended warranty contracts than they do on the product itself.
Another factor Consumer Reports points out is that many of the credit card issuers provide extended warranty coverage on products purchased with the credit card. Sometimes the credit card coverage doubles the warranty period on product parts. Of course, each credit card is different. You need to check with your credit card issuer. It sure makes a case for keeping sales slips on your purchases. What I also found interesting is that Consumer Reports encourages consumers to check with the manufacturer even though the product may be out of warranty. Some manufacturers have âdealsâ depending on the product. It never hurts to ask.
I have developed my own personal guidelines for extended warranties. On certain mechanical appliances, like washers and dryers, we may get the extended warranty depending on the manufacturerâs repair history. When it comes to electronics, I never get an extended warranty on products costing less than $100. It is usually better to replace the product.
I used to get extended warranties on computers, but the way computers become âoutdatedâ so quickly these days, I have given that a second thought. The technology changes so fast, it is hard not to buy a new machine every couple of years to take advantage of the new features. I hope my wife Sue doesnât read this column. She will be convincing me not to buy a new computer. If you are thinking about purchasing a new computer, I highly recommend that you check with a member of the Sun City Computer Club staff. They really know their stuff and will steer you in the right direction.
Keep those letters coming, folks. Send your questions and ideas to: Sun Day, Frugal Forum Column, P.O. Box 7505, Algonquin, IL 60102, or, by email to: thefrugalforum@gmail.com.
