Peace of Mind or Waste of Time
SHA Newsletter: Vol 1. No. 10

Most desktop computers are built from standardized parts which are readily available. You can buy disks, CD-ROM drives, memory, and add-on peripherals easily. Further, on the whole, computers tend to be very reliable. If your computer survives the warranty period, it is likely to run for a long time afterward. Also if your PC is an inexpensive model, paying 30% or more of the price for an extended warranty might not make sense.

Laptops, on the other hand, involve more custom engineering because of the weight and power restrictions they must meet. Most of the working parts are integrated into the main circuit board (the “motherboard”), which is expensive and unique to each manufacturer. In many cases, when any part breaks, the fix is to replace the motherboard. Since laptops often get hard knocks in use, an extended warranty from the manufacturer can be economical.

How Do You Use the Computer?

What would happen if your computer failed right now? If you depend on it for business or for important personal data, then an extended warranty may be right for you. If you use your computer only for hobbies, then losing the use of it for a few days while you resolve a problem is not a big deal.

On-Site or Mail-In Service

Extended warranty plans vary all over the place, but one big element is whether they offer you onsite or mail-in service. The difference can be dramatic. Mail-in service is just what it says: if your computer breaks, you mail it back to the company, usually in the original package or in a box provided by the company. You pay the freight, so getting it there fast costs you more money. The service company will generally fix it quickly, but it will still take a week or more to get your computer there and back.

Onsite service is frequently promised as next-business-day. This is certainly more convenient, but you still need to expect a few days turnaround on a repair. The repair parts can be shipped to arrive the next day, but then you need to schedule an appointment with the service technician. This might take an extra day or two. It’s still usually faster than mailing the system back.

Even if you have onsite service, you might not get it in all cases. Some parts may be considered customer-installable. The computer vendor will send you the parts and (sometimes) instructions, then it’s up to you to put them in and send the broken parts back.

If you travel a great deal, it can be challenging to arrange an onsite service visit. Make sure that your warranty will cover you everywhere you go, particularly if you travel in foreign countries.

Is Your Data Sensitive?

If you use your computer with sensitive data -- financials, proprietary technical information, client information, and so forth -- then you might demand onsite service. That way, your computer (particularly your hard disk) does not have to leave your hands, and you don’t have to worry that a factory technician is snooping around. If you ask to keep the replaced parts, you will be charged for at least part of the cost.

Things to Ask

1. What is the response time?

Next-business-day is common. 24X7 service, if available, is going to be more expensive. What consideration will be given if the promised service level isn’t delivered?

2. What is covered?

Wear and tear is usually going to be covered, but accidents and theft usually aren’t. Ask about any geographic restrictions if you travel.

3. What about “cosmetic” damage?

A crack on a laptop case might not be covered. But if that crack exposes electrical parts inside, it might be. Also ask if any parts are specifically NOT covered.

4. What is the cost to repair or replace common parts?

Ask about the display, keyboard, mouse, and disk drives. These are some commonly-serviced components.

5. What parts are considered “customer-installable”?

6. Are software problems covered?

In many cases, the vendor will support software only if it’s needed to repair a hardware problem. Once the technician can show that the hardware is operational, he won’t help you with a software issue.

7. For how long are parts going to be available?

If parts are not available to fix your problem, what will the vendor do? Do you get a new computer? Will the vendor pay to transfer your files and settings to the new machine?

Summary

Vendor-provided extended warranties are a gamble that depends on your specific circumstances and on the extent of coverage. In many cases, you are better off skipping the warranty and paying for any repairs. If you have a high-end computer, rely on it heavily, or travel a lot, then an extended warranty might be a good bet.

Please note: Any trademarks and trade names of others mentioned in this message are the property of their owners, and not Stoney Hill Associates, LLC. We respect the intellectual property of others. The information provided is believed to be reliable, but we cannot guarantee that the procedures and information given here will work correctly for your specific situation.

If you would like help with a computer or software problem you face, contact us. Send an email to request@stoneyhillassociates.com.

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