David Goldstein
Extended warranties: Are they worth the cost? The wide range of options, prices, and incentives available to cars make it difficult to answer this question. Other items, such as appliances and cell phones, are easier to choose from.
Extended warranties can be necessary for some people. A May 2020 Report on Economic Well-Being from the U.S. Federal Reserve found that nearly 40% of Americans couldn’t pay $400 in an emergency with cash or with a credit-card charge they could pay on their next statement. Extended warranties can be vital in situations where consumers are faced with the choice of buying a refrigerator or paying more monthly interest.
Others see insurance and warranties as having a different benefit. Dean Stoli, a customer support representative, stated that we charge less for warranty work than if we were to fix something from someone who called us without a policy. My Appliance ServiceThe company is based in the western San Fernando Valley. It is one of the largest repair centers for appliances in Ventura County homes.
This discount is added to the cost of an extended warranty. The manufacturer who offers a warranty estimates the average cost of repairing an appliance over the warranty period and charges enough to cover these costs. Stoli states that the warranty is generally a good deal since the manufacturer’s costs are less than the cost to repair the appliance for a consumer who does not have a warranty.
Consumers without warranties may find it more practical to use local repair shops even if they are not authorized by the manufacturer. But not all manufacturers allow you to work with unauthorized repair shops.
William Shifflet, a 28-year-old owner at Gizmo Wizards Oak View, said, “Some companies whose devices we service are intent to put me out of business.” He explained that every new iPhone has more booby traps. If you’re not an expert, you could end up damaging your phone. HP replacement parts are easy and simple to use for computers.
Product improvements, design changes, and additions of features might encourage repair rather than replacement of products, ranging from cell phones, dishwashers, to computers. However, when manufacturers haveten to demand new products by including non-durable components or when repairs require spare parts that a manufacturer has stopped making, consumers are limited in their choices. Consumers are taking action in one area.
Change.org’s petition to the United States House Committee on Energy and Commerce asks for a ban on printer cartridges that are disposed or remanufactured. The petition states that what was once a vibrant circular economy for recycling and manufacturing used printer cartridges in early 2000s is now under threat from the import of non-reusable, cheap replacements.
Another consumer movement is fighting to protect do-it-yourself repair options. The Federal Trade Commission voted unanimously last year to enforce a group laws called the Right to Repair, which was a victory for these advocates. A FTC report called Nixing the Fix, which was released by the FTC, accused some manufacturers of violating the Magnuson Moss Warranty Act through false statements. This included opening this device and voiding warranties.
The nonprofit organized the consumer advocates who made the case to FTC. U.S. Public Interest Research GroupPartly funded by private companies such asiFixita San Luis Obispo-based business selling repair manuals and kits. Right to Repair advocates believe that consumers should have access to the parts, documentation, and software they need to repair their homes.
In addition to saving money for consumers, repair also offers other benefits. Repair saves resources that would otherwise be needed to create new products. Economically, repair can be a boon for the domestic economy. Instead of sending money abroad to buy new goods, you can use local labor to restore items.
David Goldstein is an Environmental Resource Analyst at the Ventura County Public Works Agency. You can reach him at 805-658 4312 or [email protected].