Black Friday and Cyber Monday offers: Should you consider service plans for electronics?

You probably took advantage of the Black Friday and Cyber Monday deals this year and perhaps you purchased an electronic. With that product you were probably hit with an extended warranty option. Service plans, they’re everywhere, from big-ticket products to the smallest of electronic devices. 

They sure can be tempting. Peace of mind goes a long way, so what’s a few extra dollars? Well, companies may be counting on you to think that way. 

Rey Hernández is a surfer from Acapulco visiting Pacific Beach. 

“It's beautiful, I like it here, but  I have to wear a wetsuit,” said Hernández.

He’s getting ready for a competition in Rosarito and says he has everything he needs from his surf gear to his electronic devices, which have extended service plans he paid extra for when he bought them. 

A camera recently broke while catching a breaking wave. Hernandez said it was quickly replaced when he took it into the store. 

“I was so happy to get my camera back.” 

Chris Raymond from Consumer Reports floats in and does a complete 180 and says it’s OK to say no to service plans, extended warranties and other catchy names meant to sell you peace of mind along with the electronic device you just bought. No matter how big or how small the device may be. 

“It’s one of those decisions you get hit with at the last second when you buy a device and you don’t want to say no because you don’t want to regret the decision,” said Raymond. 

Whether buying these plans in-store or online, he says CR surveys show most of them are never used or may even be forgotten. 

“Take that money and put it in a bank account, set it aside, you know in case you end up needing to do a repair and then maybe at the end of the year when you don’t then that money comes back to your pocket,” Raymond added.

Two quick notes to also keep in mind: 

• Some credit cards offer protections against damaged or malfunctioning electronic devices you financed through them  
• Also check your homeowners insurance, as it too may cover big-ticket items like TV’s and computers 

Raymond does admit there could be exceptions to his rule on certain hand-held devices.

“If you are somebody who drops your cell phone quite frequently and you own one of those $1200, $1400 models,” Raymond said. Or, an expensive camera for that matter, that takes a beating with each wave at the beach. 

If the extra dollars are worth the peace of mind for you, no matter what the experts might say, remember that different stores offer different pricing on these plans. So take that into account when comparing prices of the electronic device you’re thinking about buying, especially the more expensive ones.