Should I Get the Extended Warranty for My $1,000 Phone?
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- Опубликовано: 8 сен 2024
- Should I Get the Extended Warranty for My $1,000 Phone?
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I once bought an $80 microwave. The guy asked if I wanted the extended warranty for $50! I just laughed at him and said that I would risk it.
You have to love Dave’s consistency. The man doesn’t waiver in his teachings. Simple and to the point.
Luke Folds
And yet after all these years he still has to teach these things.
Just realized I’ve completed baby step 1 today. How sweet!
Good job
Nice !
Gratz!
Well done, keep going 😀
Congrats, keep it up!!
Grandma common sense: “you either afford buying 2 of them, in cash; or either afford none.”
Nice.
Sounds good but if I had 2k or even 4k I wouldn't spend 1000 on a phone
You can buy a $50 phone in reality, then save for another expensive phone.
The point is the 1/5 price point is a rip off and private insurance would be about the same which also covers theft and accidental breakage.
@@Potheadmcgee14 how much you wanna bet she's paying installments on that phone?
The best investment to protect your phone is a complete case. One with a built in screen protector, water seals for the ports, and a good solid shell. You could go premium with an otter box, or get a $15 one from amazon. Either way, it’s cheaper than a $200 warranty, or $15/mo insurance. It’ll likely offset any repair with good protection. Every time I get a new phone, I immediately order a complete case for it.
I’m also a firm believer in a phone case. I like the Otterbox with the silicone outer case. I barely took my new iPhone 7 out of my purse until I got the Otterbox for it. I bought the phone almost a year ago and plan to hang onto it for a while. I’m not one to upgrade unless the current phone can’t be resuscitated.
A good case is a good idea. However, how about spending $200 on a phone, $20 on a case, and call it a day?
Dean Albertson depends on what you’re trying to do with your phone. I multi-task on mine, handle my investments in real time, video call quite a lot, do test shots before my DSLR, tether my DSLRs to the phone, and play an occassional 3D game. Honestly a 200 phone would NEVER work for a power user like me. Now if it’s just for calling/texting, maybe checking your banking app, light browsing, then a $200 phone is fine. I just couldn’t do it, because a $200 phone cannot handle the huge array of tasks I assign to my phone. To me, $1,000+ is worth it, because its an investment to me. Not in the sense it’ll appreciate, it won’t.... BUT, the time, energy, and less gadgets I need to carry saves me tons of money, in the tens of thousands when considering the energy and time savings. To most people a phone is just a phone.
@@armyretguy7365 I understand the multi-use aspect of a faster phone. But to me, that is what a computer is for. It seems a little ridiculous to spend $1,200 every year getting the latest phone. Then, oops they drop it, no case, time to get another $1,200 phone.
Dean Albertson no doubt. I have a very power gaming PC and a video/photo editing pc also. Yes, I need both PCs due to wildly different specs for different purposes. I only buy a new phone every few years, not every year. As I stated though, it saves me tens of thousands of dollars, and 20+ hours or more a month in time. To me, it makes sense. To someone in my boat, it’ll make sense to them. You can’t really judge if $1200 makes sense to someone else, based on your own lifestyle. To you, it’s not practical, and there’s nothing wrong with that. To someone else, they could lose tons of money and time that makes a messily $1200 seem like a very tiny price to pay. Now, don’t get me wrong... lots of people try to keep up with the latest tech while not actually needing the specs. That IS ridiculous. I always ask myself 3 questions. 1)Does the benefit outweigh the cost in a practical sense? 2)Can I spend the money without feeling like I spent much of anything? 3)Do I need it, or want it? Need meaning it’s atleast going to better some aspect of my life. Want meaning it’s a worthless flex.
If I can answer yes, yes, and need, then I’ll upgrade. If even one is a no, then I don’t.
When I bought my 4Runner two years ago, they pushed hard for me to buy a $3,000 extended warranty. I was like this is the whole reason I'm buying a Toyota, if I was into buying extended warranties I'd be over at the Jeep dealer right now.
So true...no reason at all for extended warranty on a Toyota.
Lol
Exactly, did that to my sister when she bought a Camry. A Camry! Let that sink in.
🤣🤣
Drove a Jeep Grand Cherokee for years and never had any problems with it (and I wasn't stuck driving a boring Toyota).
Haven't watched this and already know the answer....NO. Thanks Papa Dave!
Extended warranties play on emotions, and Dave's points here are great. They wouldn't sell them if they weren't making money off people buying them. So while they sometimes come in handy, the cards are stacked so more likely you'll pay more than you get out of it!
Nothing would ever be sold if there was not a product to be made
When I worked in retail as a teenager, they pushed us so hard to sell extended warranties. That was because they were so profitable for them.
Of course. It’s 100% margin, and most likely it won’t be used.
Extended warranty?? you hardly have enough for the beans and rice app
People get phone insurance, but not life insurance 🤔
Life insurance is the biggest scam in the modern world
Ezz Eldin Not term insurance! People without term insurance risk devastating their family when they die.
Ezz Eldin - I disagree it’s only a scam if you have the money stacked up . Hence the term more dead than alive
Wait. You can get phone insurance?
I dont get warranty, but i do got Term Life insurance!
I bought a Lifetime Mopar Warranty for my 2012 Town and County. Best financial decision of my life.
I have a six figure net worth and my phone is worth $100.
I know plenty of people in six figure debt and they are making payments on a $1,000 phone.
Weird.
Preach!
Truth
I buy all my phones refurbished on swappa which looks new and 2 years behind the newest standards. Around $250 for each 2 year period comes out to about 10 bucks a month... Not bad in my book considering how little I care after a month
@@theonlyconstantischange123 Not a bad strategy at all. I usually buy mine used or refurbed on ebay or swappa, then keep it until it stops working or until apple stops providing updates. I'm sure this comes out to idk, $5/mo or so? And my cell phone plan I prepay by the year through red pocket (it runs on verizon towers) and it comes out to $17/mo. So my cost for a phone and cell phone plan is $22/mo. The average American with massive debt probably has their phone/plan cost at $200/mo. Just wild.
I have used extended warranty on things 75% of the time.. I started getting it because the first big thing (refrigerator) quit working five days after purchase warranty. While I’m not saying it’s wise on a phone, I have saved $10k in repairs with $2k in extended warranties.. your results may vary.. but..
Replacement warranty is different though. I always buy the 2 year warranty on headphones. Cost is about 7 dollars for 100 dollar headphones. After a year they break and I get my 100 back. I get it through Walmart.
Yep the walmart replacement plans are awesome!
Do you need the receipt for that? I have one for my controller but lost the receipt.
@@dayaf0 If you registered it the receipt when you bought it you can look it up on asurion website.
I remembered most kids in high school having the new Iphones everytime a new one was released. Like man, were parents that cool with buying their children new phones or what? I bought my HTC phone back then for about 400 bucks cash and used it until the end of Senior year
who
I was the kid with the new iphone , min wage job money goes far at 15-17 no real bills
Phones aren't the half of it, knew plenty of kids in High School who got brand new cars (Mustang, BMW, Audi, Jeep, Raptor) without ever working. Can't blame the kids, its not like I would have turned it down if I were them.
Haha I remember that phone! If it were HTC windows, I use to work at Tmobile and sold that a lot. I’m shocked at how expensive phones are now a days. The most expensive phone ive ever purchaed was the iPhone X and im keeping this forever!!!
Cody H Some towns in my state, 16 year old kids get a Mercedes G-Wagon as their first car.
She said warranty but was she talking "insurance" for cracked screen, water damage? cause some of you all need that like you need Jesus.
Man do not take your $1,000 phone to the toilet and wonder why it fell in
You can just learn how to fix a phone screen plenty of youtube videos there is that show you .
I never get anything extra for phones. 110% of the time with phones, if you try to bring it in and have it fixed they always claim that you dropped it or something else happened that voids the warranty or or is not included in it
???? You call Apple, Applecare+, $100 deductible, they send you a NEW iPhone, you return the old iPhone in the same box.
Is there any way to decrease the volume of the music that always plays at the beginning of the video? It’s so loud compared with the rest of the video.
I agree, it its irritating and LOUD. I have my cursor on the 'mute' button everytime im about to click on the epsiode, then unlcick it after the irritatingly loud intro.
They need to edit that before uploading
Ya, hit the mute button.
I thought it was just me, but I have to push my headphones off slightly until it stops......please, make it stop😂❤️
Yes thank you for that
I was expecting to hear that “$200 in some growth stock mutual funds and you could buy the phone company in 30 years”
If you're getting extending warranty for your phone, the phone is too expensive for you. Downgrade.
That's probably true for any warranty. If you can't take care of a phone and stop it from breaking then you probably should have a different phone. Something more brick-like, or a cheap and more disposable phone.
I have extended warranty up to 2 years on both of my two credit cards if I pay 100% using them. That’s sufficient. Since most problems will occur during first 2 years.
Her 2yr warranty costs about as much as my used Pixel 3. That's $800 for investing. Buying new phones should be considered like buying new cars. Don't do it!
@@pkal244 dude, a 4a is $350. Buy new phones, just not $600 plus new phones.
@@bindingcurve can't fault you for that choice! I prefer front facing speakers though and I got my P3 over $100 cheaper than a new 4a but I'm a penny pincher so it makes sense for me :p
Totally agree with the general advice here, Dave is a genius, there's no debating that.
The cost of the phone aside, though, smart phones can be slightly different. And in the case of Apple products, you may be better off looking into their Apple Care options directly from Apple.
The original warranty on the device doesn't cover accidental damage & the cost of the display glass could be half the price of the phone. Apple also doesn't sell their replacement parts to consumers or 3rd party repair, so if you find a 3rd party repair shop, they don't have original replacement parts.
This is the reason I don't buy apple.
He basically told her in a nice way to buy a cheaper phone she can afford to replace
Time is money faster phone gets work done.
I could buy 5 phones id still pay 5 dollars a month for my damage protection
@@aquaticasmr184 but the network speed is the bottleneck.
@@chrisreynolds6391 wifi
@@aquaticasmr184 laptop
@@chrisreynolds6391 a good laptop is just as much as a phone
I use my phone way.more than any laptop
I cant imagine pulling out my laptop to process an ecommerce order on my website when I can do it on my phone faster
I’ve used these warrantees twice. Once with my router and once with my couch. When the fabric on me couch started peeling away I tried using the warrantee. The one that when it was sold covers all damage. They declined the repair and told me it wasn’t covered. When the router went it was covered. The problem is we had to wait for the company to send a box to return the router. Then when they received it they would mail us a gift card. So dumb. Both cases the warrantee company was a 3rd party place. Never again.
Back when they gave you a free phone with a 2 year contract, Best Buy tried to sell me a extended warranty on it. I said no. Got the sales pitch “it’ll fix this and that”, I said “the phone was free...if it breaks I’m throwing it away and getting another”. Lol. They thought I was insane for not getting it.
I miss those days. I always took the free phone, never felt any need to upgrade. I hate paying for phones now. I try to use them as long as I can before replacing.
Yup I worked at tmobile and when you signed a two year contract we gave away free Blackberrys and Galaxys back then. So easy
Years ago I was buying some type of electronic device at Circuit City (if I remember correctly) and the cashier was trying to get me to purchase an extended warranty because it would cover any potential problem that might possibly occur. I just looked at her and said "But that wouldn't be sporting!"
She just looked confused and rang my order up without saying anything more.
Big Foot I think this was pre smart phone.
"If you can't afford to fix or replace your device, you can't afford it." It's as simple as that guys. Raise your kids on Dave Ramsey and we may save the country.
truth!
LOL!!
Poetry!
I'm afraid that it's too late. Have you read some of the comments here on Dave's channel?
They tried selling me an extended warranty on my washer and dryer one time. I said no and she kept on bugging me to get it. I told her why are you selling me junk. She shut right up.
The emergency phone is the perfect extended warranty
This man has, cleared my finances up. My iPhone XR is out of contract now and I am going sim only, I was paying £40 a month now £8.80 for almost same package minus phone.
I'm on an At&t go phone (LG Phoenix) we bought two years ago. It was $60. Working just fine.
That's what we buy every few years.
To each their own.
18 months later when she drops it the phone will be worth $300 and they will charge her a $100 deductible to repair it. The warranty might not even cover accidental damage.
I normally agree with you except for cars. I bought a new car and it turned out to be a lemon 2 years later, the dealer has spent 8k so far repair ac, steering racks, and etc.
Here's why you don't need the warranty. Nine times out of ten if there is an issue with the car even out of warranty like a recall it has to be fixed for free.
So unless the car dealer or company wants to be sued. Don't buy the longer warranty.
I disagree, my current extended warranty on my SUV was 1700 cash, I'm on my 5th replacement taillight assembly, due to water shorting out the led, each time the bill would have been 1300...I'm ahead almost 5k..
1700 versus value of car is not as ridiculous as 200 for warranty versus a 1,000 USD phone. That is 20 %.
The extended warranty seems to have been an marketing offer, is is not much - is for 1 or 2 years ?
Idk, just for a screen replacement on an iPhone 11 Pro Max out of warranty is $329. Applecare (which I assume is what she is referring to) does cost 200. It's still a bit less than if you break it, and way less than if it's stolen.
Yes!!!! Trust me. If you lose it, You’re in the hole for the full price. If it’s an iphone. Make sure you get apple care plus theft and loss. Not just apple care plus. Sounds like a lot but when you lose your phone, you usually want the phone to be backed up and get it to the best/same as you left it state with saved numbers, logins, files...sorry Dave. It’s absolutely worth it. It’s not a cheap device like you’re point of view states. It’s actually super repairable and I had that coverage for years. Totally worth it. They would replace your 1000 dollar device for free or less than a 100 bucks. I just bit the biggest bullet because I lost my phone and that’s when it hurt because theft and loss isn’t covered with regular applecare. But even with the apple eco system, I got the phone shipped since I lost it on a business trip 2200 miles away, and took a few hours to download my back up, pics and files and it was seamless. I didn’t want a lesser phone. I wanted exactly what I had. And now I will always have theft and loss. So I have to disagree with Dave on this one. It’s totally worth it just from the time saved.
I also think AppleCare is worth it. When I bought my phone it ended up having battery issues so they literally replaced the entire phone for me without another charge out of my pocket. So it was definitely worth it for me.
I remember some customers that were Dave Ramsey people that refused to buy an extended service contract for their car. They spent $10k on an older Hyundai, had it a year, and the car drove a rod through the engine block. Even with a rebuilt motor the repairs were over $5k. A service contract would've dropped that repair cost to $100. They flushed $10k down the toilet when an extra $1,100 would've saved them. I'd rather have insurance and not need it than the other way around.
Here is the problem. He is talking about phones here not cars. Also nine times out of ten if there is an issue with the phone it's on Samsung, Apple, Google, etc.
That means they have to replace it any ways.
If you can’t afford to buy another one with cash you shouldn’t buy one in the first place ..I run my life like this with everything besides houses
The best warranty for a $1000 phone is to not buy a $1000 phone.
Unless u can replace it w/o crying
But you don’t understand. It’s totally different than the previous model. I don’t know HOW it’s different, but it’s newer and the commercials have celebrities!
@@IHateNicolasCage I like what a youtuber J Williams says. Half the phones are not worhter what they are and a large number of people don't even use all the features on the phone.
It’s not worth it to be honest I would recommend getting an outer box phone case or a heavy duty case
OtterBoxes are awesome! I've had one on my phone since I got it, I've dropped and slammed this thing around so much it's not even funny. Going on three years now, and no problems.
The other day I even purposely whipped it down at the concrete to demonstrate to my girlfriend how good the OtterBox is, LOL.
Lifeprood by otterbox is great too with lifetime warranty I'm already on my 4th case under warranty in 4 years that I've had my phone
OtterBoxes are amazing. Every iPhone I issue to my work crews are encased in an OtterBox. The phones have been dropped 10-15 feet through attic openings, dropped onto concrete, smacked against hard surfaces, etc. The only time I see one come back is when the battery starts having charging issues or it won’t update the iOS anymore - never a cracked screen or a damaged housing.
Definitely good advice for drop protection, but what about loss or theft? I'm an old guy that stays home, but young people run around so much their risk of losing a phone is very high.
I spent years selling electronics and appliances and the accompanying extended warranty. I gotta say, I've seen it work out great for people, including my family. I will always get it on TVs and refrigerators.
My current phone is an Iphone 6. Works perfectly fine, never had a warranty issue. I've had a cell phone for two decades and never broken a screen, until just this week. I can get that replaced and go another few years with the phone. However it's lasted so long that I can certainly "afford" to get a $1000 new one. Seems like a waste though to continue making calls.
As someone who use to work at T-mobile and use to rock a old school Nokia WHILE working there whilst being a top salesperson at my store back in 2011, If I buy a phone for $1000, I’m using that Bih for 10 years, period!
Sometimes the warranty may pay off, but if you buy extended warranties on all of your appliances, cars, home, etc you will not come out ahead in the long run. Remember the $100 copay is on top of the price of the warranty.
I’m amazed that some folks are still wondering if they should buy an extended warranty on a phone that they will keep for two years when the manufacturer covers the first year and your credit card will cover one repair in the second. Yes you might be unlucky with one of your devices like I was recently: credit card covered the 450$ screen repair at Apple and I smashed the rear glass two weeks later. Self insured and repaired it myself for 120$...
Credit cards are bad
@@michaelpetrus4912
Like whiskey to an alcoholic for the financially stupid
Apple will not cover accidental damages on iPhones. If you dropped it, you’re paying for it regardless. You’ll either pay the In Warranty price or Out of Warranty price.
Justin Zetzer
I bet more than half of the people with Apple Care have no clue what it covers.
@@blackworldtraveler3711 You're probably not wrong haha I even bought AppleCare+ for my AirPods Pro. Right near the end before it expires, I'm going to use that to trade them in for a replacement [air with a brand new battery, since AirPods are horrible for long-term use because of the small, not-so-long lasting batteries they have. You can SOMETIMES make warranties work for you, but generally the companies are still profiting or not really taking much of a loss. It's like car insurance, it's Russian roulette. Some people are good drivers who won't ever use it, but some will need it. I agree with Dave for the most part. Most of my purchases do not get the extended warranties.
I have an iPhone 6s, and I take my phone for repairs at the gadget fix store and it’s still going well! 5 years and counting!
I think the reason she called in is because the cost of the screen is half of the price of the phone and people break the screens alot.
I bought an extended warranty on my BMW M3 and it was the worst decision I ever made. They were a phony company and as soon as I needed them for a repair, they lied about the problem the vehicle had and made any excuse they could to not pay for the repair. BMW fortunately was on my side and belittled the warranty company. Fortunately, I got a full refund back. After that I learned my lesson.
As soon as l read the question l said NO!!! I wasn't even thinking along the lines of Dave's rationale either. After hearing it, my answer is an even bigger NO!!!!!!!
Terrible advice. I’ve never once made it 2 years with an iphone not having an issue that it had to be replaced. Whether lost, mechanical issue, charger port, speaker ect. $200 warranty to save buying another $1000 phone is a deal. Always love when a rich guy acts like another $1000 for a phone is no big deal
The same argument can be made for health, life, home, and car insurance. Mathematically, on average, you will always come out ahead not buying insurance. But you are hedging against risk and most people can't afford to pay 100,000 or more to a doctor if they get sick. If you could easily afford the 100,000, than perhaps drop all insurance. A lot of large companies self insure their health insurance for their employees.
I have used it. Broke the back glass on my iPhone XS Max. Apple’s ‘Out of Warranty’ repair is about $550-600 for my phone. I’ve used both $100 accidental damage incidents, so that’s $400 in total for 2 replacement phones vs $550-600 for 1 replacement phone. I even had an Otterbox case on my phone, they aren’t perfect. AppleCare+ is not a bad deal as long as you actually use it.
My $1200 phones screen broke the other day after 2 years. I used my emergency fund. $200 to fix. Same day and they basically replaced the entire thing. If I wouldn't have saved this money I would have had to buy a whole new phone and end up in another 2 year agreement + possibly another $1200. Thanks Dave!
You payed full price AND had a 2 year contract? Also your 1200 phone is likely the equivalent of a $400 phone now so....
Personally, I have an extended warranty on all my pencils.
😂
My wife once flushed her cell phone. She was at a public restroom (movie theater I think) with the auto-sensor flushing and when she stood up and pulled up her shorts she dropped the phone right into the running toilet! It wasn’t warrantied so we just had to get a new one.
Extended warranties sometimes pay. I paid about $350 for three years of Apple Care on my $4,200 MacBook Pro. Two years in, well past the standard warranty, my battery had swelled and damaged the keyboard and trackpad. Nearly the entire bottom half of the laptop needed to be replaced with a new battery/keyboard/trackpad component. I don’t know what the repair would have cost out of pocket, but I’m sure it would have been horrible, and possibly over $1k. Apple Care covered it entirely with zero hassle and zero extra cost.
Knowing when to buy the warranty is key. For an iPhone, it’s generally not worth it for two reasons:
1) The warranty cost relative to the new unit cost is so high that you are, over time, much more likely lose money paying for the warranty than repairs if and when needed.
2) iPhone problems generally don’t occur until a good 4-5 years in, and when they occur, they are generally not deal breakers. By the time the phone truly needs repair or replacing, it’s high time for a new one regardless. Smart phone warranties are a blatant rip off, and it’s an easy “no” decision on that.
In the first hour of ownership you drop your almost $2K iPhone, and it now doesn't work.
Walk back into the Mall, pay $100 and get a NEW iPhone.
A Olvaar Get a shock-proof case like an OtterBox or a LifeProof and then you don’t need to hope you don’t wreck your $2k iPhone should it ever take a fall.
Yeah, I learned how much of a rip off phone insurance was a couple years ago. After 10 years of paying $8/month, then $11/month. I finally cracked a screen and had to pay 50% of the value of the phone to replace it, via the phone insurance, and didn't even get another new phone. They gave me a used one. If I had just saved that insurance money I could have just bought a brand new phone in cash. Such a waste of money.
I pretty sure she is bought an iPhone 11 Pro and she is talking about the Apple care which is an insurance and not an extended warranty! Warranty covers defects and insurance covers everything else. If she is clumsy with her phone she should get it.... having said that I agree with Dave’s sentiment that if you can’t afford to replace don’t buy it.
Although I’ve been pushed, I’ve never bought an extended warranty on any of my phones or any other electronics. I’ve never regretted it.
To add to this: Most extended warranties have a deductible, often $200, so you end up paying for the repair anyway. They'll make money off you on the warranty repair using the deductible by quoting you a $400 repair cost when the real cost of the repair was $80. So they net $120 off you. Additionally, most extended warranties only cover certain things, but they won't tell you that when you sign up. Like water damage usually isn't covered on most cell phone warranties, you have to read the fine print. Finally, if you want your phone repaired under warranty, you'll have to send it off to their "certified repair facility". So your phone will be gone for 3-4 weeks, which most people recoil in horror at the prospect of being without their phones that long. Couple that wait time with the $200 deductible, most people just buy a new phone, which of course, is intended.
Instead: Research phone repair in your neighborhood, there's plenty of small businesses that can fix your phone while you wait for less than $100.
NO, You call Applecare+, They send you a new iPhone for $100 deductible,
you ship the old iPhone back for free in the box.
down a day, maybe 2
What would you expect, when you buy an iPhone that's almost $2K
I am big into tech and I love buying new phones, if you need an extended warranty you are not grown up or mature enough to carry a $1000 phone.
Man phones have gotten ridiculous! I bought a $150 phone and can't stand the junker, but $1000 is crazy for a phone!
Never buy an extended warranty on anything. Simple
Lolz even on the car I own dosent have extended warranty and its a toyota
Bought an extended warranty on my 07 Honda. Before the warranty period expired, I had a window motor and the power steering rack replaced on the car. I paid $500 for the warranty, and had $1400 of repairs done on the vehicle. I came out ahead. But I generally do not get extended warranties
@@insideoutsideupsidedown2218 yes, in some cases extended warranties are good. But most of the time they're bad.
@@insideoutsideupsidedown2218 I'm shocked they didn't loophole their way out of those repairs.
Just get a case to protect your phone or buy a new one when it breaks. If you can't afford a new one if it breaks, the one you just got is probably out of your budget.
I don’t totally agree with Dave here, but $200 is too much for a $1000 phone. If the extended warranty is low enough compared to the price of the item, they may be worth it. I spent around $30 to $40 dollars on my $400 PS4, which went defective after the manufacturer’s warranty. Due to the extended warranty, I got a replacement. I don’t get warranties on items that I have a low probability of breaking, like prescription eyeglasses.
Dave’s logic has opened many eyes over the years, big woke
You could buy it with an American Express card and double your manufacture warranty. 😲. But make sure you have the cash first and pay it off. I know Dave hates Cards, but there can be some advantages.
I just emailed Arnold Clark (car dealership) and cancelled my finance agreement that I had deposited £99 for to reserve the car. It was going to be a £20,000 car plus £6,000 in interest over a 4 year deal.
Alhamdulillah Allah gave me the realisation that I am about to make not only a haram decision but a stupid one too!
This video helped too.
I think I will stick to my 14 year old Nissan Qashqai that I payed cash for, because “I had cash at the home” as the speaker said :)
Warranty on phone is a waste because half the price of the phone price is the debuctible usually. Your paying monthly not just a one time fee.
I did buy extended warranty on my Xbox one x for $40 for three years. I figure no way I can get it fixed it repaired for under $40. To me is worth it.
Best Buy is ok but not the Best buy just me.
I’m glad Amber asked this question. I paid for my $1000 phone three years ago (with cash) and was torn between this decision. Decided not to do it. Hoping my phone lasts another two years. The two year warranty would be over now anyway.
Companies like Liberty Mutual are now covering electronics. When we switched they asked if we wanted to add it. I forget what it covered but it was phones, tablets, and maybe laptops (I forget). And it was like a few bucks a year. It was not bad at all. Luckily my wife and I are cheap so our phones are 3 and 4 years old and we will not pay $1k for a phone to call, text, play games, and play on the internet. Once again people, nobody cares what phone you have. Be practically.
The only extended warranty I buy is from best buy for my headphones. Worth the price folks.
You shouldn't spend $1000 on a phone to begin with but Dave doesn't realize that a screen replacement can cost between $200 and $500. That's the part that breaks the easiest and most often. So it isn't the most ridiculous thing in the world to consider the insurance on a $1000 phone. It might cost the company "$20" (which it doesn't it's much more) but the customer will definitely still pay $200+ out of warranty to do that same repair. The point is don't spend that much on a phone to begin with especially if you are worried about breaking it, using it just for social media or replacing it ever year or two.
Sell the phone, beans and rice 😂😂
I would add that the time you really find out is a rip-off is when you actually have to use it. That is when you find out the night mare starts and you were ripped off.
this is true for all insurances. the company has to make a profit. i never buy insurances besides for things that i cannot buy back with cash if they broke/burn... i only have insurance for my apartment.
I purchased an extended warranty from JCP on my Samsung kitchen appliances. My microwave started having issues. The company came over. They said it needed a new keypad. Then I got a call saying they were totalling it out. Got a check for the full amount. Then the microwave came back to life🤣🤣
Way back in ancient times I was a kid looking to buy my very own Discman (yes, that long ago). It cost about $40 and the salesman went into a song and dance about protecting “my investment.” It was an impressive pitch until he got to the price. I couldn’t afford the extended warranty even if I wanted to get it so I didn’t. But it taught me real quick that stores will offer an extended warranty on literally anything.
One thing, my parents bought an extended warranty on their projector. They used it for four years. Then they bought a new one and gave the old one to me.
I discovered an unsightly splotch on the screen and took it in for repair. They didn't sell the model anymore so they refunded me the whole price of the projector. I used it to buy a brand new projector and a brand new color printer...and still had money left over!
My warranty for my BMW 750 was $3200 n over 2 years warranty company paid out $7300
Sometimes you 'win' with a warranty, just like some people win at slots, I would not base my finances on it.
I just found out I was paying total mobile protection on 5 devices through Verizon. That was 45 dollars a month. I just reduced that to basically the same coverage for my only two phones at 3.00 each so six dollars total. That just saved me 468 dollars this coming year. You have to pay attention to what they are doing when you sign up for all this stuff you don’t need. I may even drop the six dollars but at least I got that huge cost down. Awesome!!!
That's why I use Aspiration. They offer a full-fledged free checking account with a debit card that provides cell phone insurance up to $600 when you pay your monthly phone bill. And I filed a claim a few months ago so it actual works, but there is a $50 deductible.
No point in getting extended warranty. It is a waste of money. Samsung planned their smartphone’s software to mess up after you’ve owned it for a few years because they want you to keep upgrading.
I wouldn't even spend 1000 on a stupid phone. I just buy them cheap for 300
I buy a like new phone for $200-$300. Always works great. Bought my Google pixel 2 on clearance due to the 3 coming out for $300 brand new.
Idk where you get your data from cuz... but phones like iPhones total cost (units + manufacturing + supply chain) around $450 to make for the entry level ones and $625 for the premium models
My local electronics store has a membership card that rewards points based on the product and purchase price.
For 5% of the purchase price in points, you can get an extended warranty for 5 years. I always get that extended warranty and have used it three times on large-ticket items. Saved me lots of money.
However, extended warranties in the USA are just profit drivers. I used to work at the Wiz and made so much in commissions on extended warranties.
Dave is right in general, but in some cases it makes sense. I always decline warranties, but for my sons power wheels, I always get them. They gave me a full refund after 2 years of use on his first one after it stopped charging. I used that store credit to buy a bigger one and used it to get all 4 new wheels, new motors and new shifters.
We bought an extended warranty for our LG refrigerator just to find out that our refrigerator stopped working 2 months after the extended warranty expired. I had payed over 300 for the warranty wish I would’ve just saved that to put towards my new fridge. Never buy LG!!
Good chance it is bad caps on the control board. You can recap one for less than $10
I'm spending 10 a month on phone insurance and can't tell if I am wasting money. Ive had my phone break and they fix it by turning the on off button and then telling you to pay $200 for a replacement phone. I think ive maybe saved $50 by having the insurance to cover their $50 asstistance fee they would have charged me to look at it. They were too dumb to tell me to just do a reset on my phone which I figured out myself by researching online. Then after resetting it it worked like perfect again.
I self insure/warranty everything I buy with my emergency fund since being on my own.
The reason my emergency fund kept growing and full blanket 20 year now instead of two years or less.
I know if an outside underground water pipe I'm responsible for ever burst it will cost around $4k to repair.
It's just math and common sense doing this long before Dave Ramsey.
Also people need to take better care of their things.
Heck I buy my Iphone with cash and no insurance/warranty and still look brand new after three years.
Daughter dropped her $1000 iPhone cracked her screen.
For $100 deductible, NEW iPhone (not a waterproof seal violating repair)
If you make your phone payment with Well Forgo credit card...they will insure your phone. That’s what they claimed...they could be a liar🤷♀️
On cars it is worse, and covers far less, but the most important thing to remember, other than they're a rip-off, is extended warranties almost always have a deductible. So now not only have you paid for the extended warranty, but you are going to have to pay an additional amount just to get it fixed.
$1000 phone, and a $1000 car? I run a multi-million dollar business with a 5-year old Samsung S5 that might might have cost me $200. A thousand dollar phone doesn't build you wealth. I'm surprised Dave didn't point that out.
I got a warranty/insurance on my S9+ and pay $20 or so extra a month. I still have to pay them $200 to get the charging port and screen fixed. I've had this phone since it released about 3 years ago and could have saved that money and just bought a new phone when it got some wear and tear on it.
Let this be a lesson. Also, $20/month for three years is $720 + the $200 for the charging port, you could have bought a brand new phone with money left over today
Yea but remember also covers theft and loss. I bought a phone and within a year charge port messed up and paid the deductible and 6 months later screen cracked from a fall.. so far ive saved a good amount of money. Imagine i didnt have a warranty i would be on a 3rd phone paying out of pocket for each one.
A Charging Port, it wireless charges
This is true of a lot. Except headphones. I replaced 6 headphones everytime they broke on me for a good 5 years and chained the warranty costs (i.e. if there was 1 year left on the 2 year warranty I only paid for 1 year so it was half the cost to renew the warranty) each time it cost me the renewal price which was about 10 bucks for a $60 pair of headphones. After the 6th one broke I just got my money back. It was probably $130 bucks for $360 worth of headphones. In general though I never buy warranties.
After owning a samsung galaxy s3 i realized smart phones arent being innovatove anymore so from now on my budget for a phone is $200-$350 everytime when i need a new phone and if i use the phone for three years i feel like then its appropriate to remove the SD card and sim card and dispose the phone for a new one.
Love love love your commentary !!
I think where people get confused on this issue is. These warranties are usually accidental damage warranties. Manufacture warranties don’t cover if u drop ur phone and break it yourself. It’s kinda like insurance on a car. A manufacture warranty doesn’t cover if u crash ur car but ur car insurance does. Still the warranties aren’t worth it most of the time.
Still using the iPhone 5s I got in 2014. People are suckers.
In the area I'm in I'm glad I have the warranty for tools and phones