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Advice on Extended Warranties

You're buying a new computer at the local branch of one of the large retailers. After much research, you've finally picked out exactly the make and model computer you want. Before you can leave the store employee offers you the "protection" of a three year extended warranty. He tells you that without the warranty you could be out of luck because local computer repair facilities will either over charge you or they will keep your machine for a long time.

Before you decide on an extended warranty read the fine print. Be aware of the potential for problems:

• Poor workmanship - Virtually every retailer uses contractors for the warranty service. Sometimes these sub-contract "technicians" are merely parts swappers. They are usually paid a flat fee per job, regardless of the time on site. It is in their best interests to finish your repair as quickly as possible. In many cases, that means they do a rush job, creating other problems in the process. We know of several of these sub-contractors who will not use the necessary thermal compound on a processor unless it comes with the part!



• Wrong Parts - When you call the Tech Support phone number provided you are actually calling a contractor. They will diagnose your problem based on the symptoms you describe. They order the part the "book" tells them to order. This could be the wrong part! It might be that the problem was misdiagnosed. It might be that they looked up the wrong model. The repair tech will not be able to fix the problem and you'll be without your computer for another week or more.



• Used or Reconditioned Parts - Most of the Extended Warranties allow the installation of used or reconditioned parts. These reconditioned or used parts might be fine - or they might be defective parts removed from another machine.



• One problem = one part - Your problem could be caused by a number of different parts. In most cases, the warranty contractor will pick the most likely part and ship only the one part. If they're wrong? You're left without your computer until the correct part arrives.



• Software not covered - In most cases, the software installed on your machine is not covered by an extended warranty. If the contract Tech Support or Field Tech decides your problems is software related - Sorry, you're out of luck. With the majority of Extended Warranties, the responsibility ends when the machine will boot to an operating system.



• Hardware additions - In many cases, the addition of any hardware to the system voids the Extended Warranty.



• You're the Tech - In many cases, the contract Tech Support will want you, the end user, to perform diagnostics. This could be just the simple swap of power cables, but they might want you to remove the side panel and dive into the inner components.



• Three Strikes - Look for a "Three Strikes" clause. This clause gives you the right to demand a new machine if your machine cannot be fixed within three visits, or if your machine requires repair three times. Review this clause carefully!

Our conclusion and advice: Most modern computers are reliable - they either fail right out of the box or they "last forever." If you're buying a computer of such questionable reliability and quality that you think you need an Extended Warranty maybe you should reconsider and purchase a higher quality machine.

If something does go wrong - contact a reputable local computer repair facility, like Glitch Busters. The local repair facility will thoroughly diagnose your computer and advise you as to all repairs needed. The local repair facility will, in most cases, assist you with any software related issues and will take the time to answer your questions. Most local repair facilities will have you up and running in a matter of hours. They usually carry "loaner" parts and even loaner computers in case your repair requires a special part. And, generally, local repair facilities do not use reconditioned or used parts.

You decide