Is it worth getting the warranty?

[GrayC25]

I recently purchased an iGroove for my iPod. It had been previously purchased, but the person who bought it had to of returned it within 30 days of the original purchase and it was completely checked out by the people at Best Buy. I am curious if I should pay $40 for the warranty or not. I believe it's only a 2 year warranty, but if something were to happen to the system, or even the remote, I would get a brand new system. They wouldn't try to repair, I would get a new one.

My question is, does the remote or system conk out at all? Have there been any problems with the iGroove, that you've experienced or heard of? I just don't want to purchase the warranty if it's not worth it. I haven't seen much posted about the iGroove on this site, so I thought I should ask.

Please let me know what you think.

Thanks!

[efzauner]

Extended warranties in general are a big money maker for stores and from a statistical point of view, are a waste of money. Electronics in general are very reliable. Most problems will show up during the normal 1 year warranty. I am assuming that you used IGroove has the standard warranty.

For example. According to Consumer reports about 3-10 percent of electronics need repairs in 3 years. (this is an average, I dont want to go thru every product). So you would have to pay 3-10 percent of the cost of the product for a 3 year warranty to break even. If it costs more, then you loose. Most extended warranties cost considerably more than that.

This repair rate may seem high, but a 5% annual repair rate results in a 20 life span, which is in line. I have lots of appliances and electronics that last 10 years or more.

You probably have lots of electronics and applicances in your house. If you would buy extended warranties on all of them you would pay much more than simply accepting that stuff will break and you simply pay for the repair or buy a new one.