Best Buy Overlaps Their Product Service Plans With Manufacturer's Warranty
Wiliam writes in to point out something he noticed in the fine print of Best Buy's Product Service Plan: it begins as soon as you purchase the item, and doesn't cover anything covered by the manufacturer's warranty. If you have a one-year manufacturer's warranty and a two-year PSP, you effectively get only one year of coverage out of the PSP.
I'm one of those consumers who always seems to end up with defective big ticket items. I've had a laptop, HDTV and Xbox360 all die just after a year of the initial purchase. Thanks to Product Service Plans and Extended Warranties I got all three items replaced which saved me close to $2,500.Thanks, William, for the info! But we can't believe you'd be brave enough to admit on Consumerist that you have repeatedly purchased Product Service Plans from Best Buy. For the love of god, go easy on him, readers.While prepping to buy an iPod Touch I decided to read through Best Buy's Product Service Plan again to make sure I understood how it worked. The following two sections caught my attention immediately.
Coverage under this Plan expires one (1), two (2), three (3), four (4) or five (5) years from the original product purchase date as stated on your purchase receipt.
[...]
Manufacturer's Responsibilities: Parts and services covered during the manufacturer's warranty period are the responsibility of the manufacturer and not covered under this Plan.In the past I've been lucky (lucky?) enough to have the item die just after the manufacturer's warranty ended. I had assumed that buying a two year service plan from Best Buy would have guaranteed me two more years of service - turns out that's not true.
When Best Buy sells a 2 Year Product Service Plan it starts immediately and runs concurrently with the existing manufacturers warranty. I would call it double coverage on the product except for that second section.
I spoke to the folks at my local Best Buy (I'm lucky enough to live near a BB where the folks know the system pretty well) and they confirmed it to me - even though they call it a two year service plan they really only cover the second year of service because the manufacturer is responsible for the first year.
Is it me or is this clearly deceptive? When you walk into a Best Buy and purchase a 2 year Product Service Plan (which they regularly call an "Extended Warranty" at checkout) you expect it to kick in after the manufacturer's warranty ... right?
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So, you would go around signing any contract without reading it first? I got one for you to sign. Also, on the topic of the service plan if you read the fine print, it covers things not covered by the manufacturer and it allows you to bring the item to the store since best buy will honor manufacturers warranties.
yeah its the same way at Circuit City. I thought everyone knew it.
Even the the majority of veteran Best Buy employees don't know this.
Every time I go shopping for consumer electronics It tickles me inside when I get the opportunity to inform the sales associate (not just BB, but Circuit City, Staples, etc) that they are lying and they don't even know it.
It's 'somewhat' deceptive, but commonplace.
For example, most laptops only have a one year warranty, and purchasing an upgrade doesn't add years to the end of said warranty, but rather extends it to the specified time.
Duh, everybody knows this. It's plainly stated on your receipt too. (at FutureShop, who BB own/operate) the date your extended warranty expires is printed clearly on your receipt...
As much as I hate it when companies like BB screw the little guy, it's not BB's fault when the consumer is an idiot, and it's not their fault if the consumer makes incorrect assumptions that reasonable people wouldn't.
My amazing psychic abilities predict a "Why shop at Best Buy?" comment in 3...2...1
Does it provide additional coverage, such as breakage and accidental damage? If so, it could be worth it. If it basically extends warranty coverage by an additional year, just get AppleCare for iPod instead.
There are exceptions like speakers, which are covered for 4 years after the manufacturers warranty expires.
Everyone's guarantees start at time of purchase; and as far as I know, that is because you then deal directly with the Best Buy or whichever retailer it may be. No need to call the manufacter and wait months to get a product fixed.
Um, yeah this is how its always worked. No surprise.
imho bad post.
First as far as I know that it nothing new, second you are buying an IPOD from bestbuy? go to Apple directly. Also read into those contracts because now your new ipod that doesnt work after a year will be replaced with a refurbished unit.
I'm sorry, that's five years. Other exceptions:
Conventional washers: Three (3) or five (5) years of protection beyond the manufacturer's warranty for the transmission or drive motor for front-loading washers (parts only).Refrigerators and freezers: Three (3) or five (5) years of protection beyond the manufacturer's warranty are provided for the compressor (parts only).
Air conditioners: Sealed system coverage and two (2) or four (4) additional years protection for the compressor (parts only).
Home speakers: Five (5) additional years of protection beyond the original manufacturer's warranty (parts and labor). [From BestBuy.com, but unlinkable.]
I think people are confusing two different things. There are Extended Warranties, and there are Service Plans. I live in Chicago and shop quite a bit at Fry's. When we bought our Plasma, we got their Service Plan cause it offered a loaner. If the thing goes bad, they will pick up our old unit and deliver a loaner until ours is repaired. Then they'll come back out and drop off our repaired unit and take their loaner back. Talk about saving on the back breaking labor. Even if the first year runs concurrent with with the manufacturer's warranty, there would be a benefit in having it covered by Fry's as well.
This might be in the fine print, but it's a pretty standard practice. When Wal-Mart began talk of entering the ESP business a couple of years ago they were going to take the approach that the ESPs that they sold would begin the day that the OEM Service Plan ended.
This was a mixed bag as the OEM plan may be worse than WalMarts, potentially making people wait for their OEM plan to end before getting a resolution--however they were able to offer significant price-savings on their ESPs due to their lack of overlap.
Best Buy is still around eh? Unbelievable. I stopped shopping there years ago. I don't understand why anyone would shop there unless they like getting the WORST customer service on the planet.
There's one important exception to this: Speakers. When I worked there in 2002-2003, I bought a really nice set of JBL bookshelf speakers on closeout for $40. I didn't bother with the PSP at first because nice speakers generally have really good warranties. Five years, in the case of the ones I bought. Right after I bought them, my boss asked me if I got the PSP, and I said no. That's when I learned that it tacks onto the end of the warranty for speakers.
Coincidentally, I was just going through old files last night, and I was throwing away old warranties that had expired, and I made sure to look at this one. Sure enough, it says 4-year *add-on* PSP.
For the record, when you work at Best Buy, the service and replacement plans are ridiculously cheap, and they're almost always worth the few bucks they cost you, so I bought them on everything back then. Most of them are ripoffs for the general public, however.
Oops, I got my four and five mixed up, I think.
@SchecterShredder: I go there to be left alone while I shop. So, yeah, I guess that is why I go there!
Pretty commonplace, same thing at Circuit City.
I don't know about Best Buy, but on computers, the CC protection plan DID cover things in the first year that the manufacturer wouldn't. Customers were encouraged to contact the manufacturer first, but if they turned you down, CC would gladly pick it up. That was years ago, though, so I'm not sure how it is now...
Purchase your items on a visa card. Visa automatically doubles the manufactures warrenty.
This is common place for a service contract like what best buy sells. Even though they end up sending repairs off to the MFG you still can have some benefits that they have that the vendor does not.
In the case of a computer you might have free backups before they send it out or free checkups.
TV's as someone mentioned with the plan they got elcewhere might have onsite support or a loaner program.
It is just up to the consumer to decide if they want to pay for it or not. In the case of the guy here is sounds like he has been getting a good deal out of them as he has needed it.
First, I thought most consumers knew this.
Second, I believe this poster does not understand it correctly, or has run across a rare exception.
Third, the BB service plan will cover anything the manufacturer's warranty covers, most of the time, in addition to other things (Like accidents with cameras). And, if your item still has a manufacturer's warranty, you don't have to go through them to get it fixed. Simply bring it to the store and we'll take it from there. Also, many times the service plan will give you a brand new item, if it's too expensive to fix said item (most manufacturer's don't offer this--to my knowledge--and a great example is a DSLR lens).
From what I understand a bunch of CCs (my Citi MC and at least one other) will extend your warranty for an additional year. That alone makes that card worth it, plus I don't have to deal with BB.
I knew this when I purchased the plan for my Xbox 360, although back then, Microsoft's warranty was only 90 days. It was then changed to a year, my 360 broke, and did a quick swap at the store without using up the plan. Now that it is a 3 year warranty, my plan is useless. :)
@freshyill: I heard they changed the employee discount on plans a few years ago. Employees no longer pay cost+whatever %, but instead get something like a 15% discount.
In related news, I remember having a manager called to the register as I tried to buy a VCR with my employee discount without the plan (VCRs broke a lot, so the plan cost wasn't cheap). "I'm really disappointed in you. The PSP pays your paycheck," I was told. I left with a VCR, a 4-year PSP, and my tail between my legs.
This is new news? To play the devil's advocate, instead of dealing with the manufacturer, you're dealing with Best Buy, which, in my opinion, is the lesser of the two evils. As I consumer, I hate nothing more than having to deal with manufacturers/tech support/customer service over the phone. I'd rather be able to walk into Best Buy and get it replaced.
On top of that, there are certain things that manufacturers would not cover that the Best Buy replacement plans and service plans would. For example, a few years ago, I know Apple only covered the iPod battery for a short time, then after that, you'd have to pay $100 for a replacement. Best Buy's service plan covers batter replacements for 3 years if you have a significant loss of charge. This is the same deal with laptop batteries.
Well, if you have a 2 year product replacement plan, you get to exchange it unlimitedly in the manufacturer's warranty, where without it, you have to go through the manufacturer. We've all seen how that goes for some consumers on this website, have we not?
Depending on the nature of the product, and it does vary on every department, the store bought extended warranty may supersede the manufacturer's warranty. Yes, the PSP does start upon the purchasing of a product, so basically it runs simultaneously with the manufacturer's promise, however many times the manufacturer won't cover anything except specified parts or labor, which kinda sucks. Even for the cases where BB sends stuff out to the manufacturer for repair, at least the cost of transport, delays and potential replacement parts are absorbed by BB and not the customer. Also, sometimes by shipping directly to the MF with just the MFG can be a hassle since there is no limited time frame of return. I had a camera that had a 1 year MFG, and I purchased a 3 year extended plan. Future Shop policy is that if the item is out for repair more than 60 days, it merits an exchange. So on my 61st day, I got to choose a brand new equivalent which after one year had almost double the mega-pixels and a lot more features.
@busydoingnothing: Right, but thats the point. For the first year, if it's covered under the manufacturers warranty, best buy will point you at them. So you're really not getting anything unless its NOT covered under manufacturers warranty but IS covered under the BB one.
this is exactly the same way the service plans work at CompUSA too. if it is in the first year since you bought it, compusa sends your computer to the manufacturer for you basically. then between year 1 and year 2 it either gets fixed in-house or send to a compusa repair depot (for laptops). the only difference is, the compusa plan covers screen replacements (for laptops), while the manufacturer doesnt, so if you break your screen at any point in the 2 years, it is fixed by compusa.
This is even a post here? C'mon, just read the fine print. There's nothing sneaky to the warranty.
I work at best buy, and make sure to explain everything in detail to whomever buys the warranty on the ipods-- "starts at date of purchase," "does not cover catastrophic damage...", but the worst thing you can do as a shopper is come into a store unprepared, without any research having been done, and just accepting a service contract without any questioning. Now, I can't speak for the other uneducated kids who work at all the other best buys, but the one thing they drill down to us at my store is 1. don't call it an extended warranty; 2. explain the terms in full.
just a little tip, though. if you're buying an ipod/mp3 player whose value is over 299, and the service plan is available with best buy, it's less of a hassle for fulfillment of the plan if you go through the manufacturer and get their warranty. however, in many cases, tracking down a manufacturer is more of a hassle than finding a best buy and sending the offending product in.
however, for anything below $299, bby offers a replacement plan. It's only 2 years (again, starting from date of purchase), but it does cover an in-store replacement when your battery shits the bed. that is worth it, in my opinion. fulfillment is very lenient, at least at my store.
@busydoingnothing: They cover *one* battery replacement, any more than that and you're at the discretion of the adjuster.
If an extended warranty overlaps, but covers accidental damage the 1st year, it's maybe still worth it. Do your homework before buying :)
No offense but if you did not know this you really need to read the contracts you sign up for more... Best Buy has been careful about the wording on these plans for a reason.
No, it's not just you. Yes, it's clearly deceptive. Everything about their service plans is deceptive. For instance, on their repair service plans, they say if it breaks 3 times, on the 4th problem they'll replace it. Here's what they don't tell you: If the service center claims nothing is wrong with it, even though something clearly is, that does not count against the 3 times. It also does not count toward the warranty and you will be asked to pay a $30 charge for the non-repair. Yes, even if you prove to management that the device really is broken and the repair center is full of shit, they do not care.
My iPod took 7 trips to the repair shop at 3 to 4 weeks EACH - almost 6 months I did not have access to my iPod - and Best Buy still refused to replace it. Only when I finally threatened to sue their ass and sent nasty emails to their executive customer service did they decide to honor the terms of their extended warranty.
Oh, and their replacement plans? Let's say you have a 4 year warranty. In year 2, the product breaks and they give you a new one. Your warranty is now over. You do NOT get the other 2 years, once they replace the product the warranty is considered "fulfilled" and they have no further obligation to you.
Never, ever again will I buy anything from Worst Buy.
I too am in the camp that thought everyone knew this. But as I read this article, all I kept thinking was, "people buy the plans from electronic stores?" I really didn't think that anyone did that!?!
@Brine:
The 3-year warranty on the Xbox only covers one thing: The Red Ring Of Death.
Any other problems (CD tray breaking down, video card failure, etc) are under the original warranty.
It should be noted that they also have a "buy-out" clause -- If they deem it better than replacing the unit, they can "refund your original purchase price" and end the contract. This means that if you got something on clearance, and paid a really low price, on sale, etc. They only have to refund you WHAT YOU PAID (for the item only, not for the contract) and not replace the unit or giveyou something of equivalent value.
No, by the definition of the name "Extended", it means that the Extended Warranty starts after the manufacture warranty ends. This is clearly a fraud case.
@jimconsumer: The $30 charge is in the contract. And of course it won't count towards the three strikes if they decide it's not a problem. You thought you could send it off three times, pay $30×3=$90 and get a new one? Of course you didn't.
And the that the replacement plan is a one-shot deal is in the third paragraph: "Once a replacement voucher has been issued after the manufacturer's warranty has expired, this Plan is terminated." I think this makes sense, because they send you a voucher as soon as you request one. You are free to buy a replacement plan on the replacement (or buy whatever else you want).
But your experience with the PSP is saddening. I'm glad you stuck to your guns and got something worked out.
@Jinx: It's called a "Performance Service Plan".
The operative word according to Best Buy is performance: it covers everything the manufacturer's warranty does and provides additional coverage (like wear and tear due to normal usage and various things others have mentioned) during and after the manufacturer's warranty.
Saying "extended" is a big no-no. If a salesperson does say that to you, calling over a manager would be great fun.
I always buy the extended warranties. Everything I buy is crap like my Sony LCD TV, my fancy coffee maker, everything. I am to stupid to ever get anything of value so I always have to buy the extended warranties.
I know they are a rip off but everything I have is pure crap anyway.
This is a non-issue. The service plans cover way more than the manufacturer's warranty, so why would you want less coverage as opposed to buying more?
Just to comment on this, i am a best buy employee. The PSP/PRP (Product service plan/Product replacement plan) do run alongside of the manufacturers. However you will find that Best Buys service plans also cover the degradation of your battery, you ac adapter, power surges and if you get an accidental protection plan they cover psychical damage.
Even as an employee i always buy one where i can.
As for a pro tip : If you get a PRP you can mail in the product, in return they will mail you back a check for the FULL amount you paid minus the price of the PRP. I don't know about you, but its worth the $25 for me every 3 years to get the newest ipod :D.
Extended warranties have always been like this as far as I know. For consumer electronics it usually means being able to swap it at the store as opposed to sending it out.
@Pec: The "majority"? Is that with a sample size of one or two employees who work at your local Best Buy?
this is a bit deceiving... i bought an extended warranty via BB for my laptop. battery went bad after 6 months, was not covered under manufacturer's warranty, but best buy replaced it, albeit it took a month to replace.
I thought everyone knew that...I don't think BB is that deceptive about this? Extended warranties from anywhere almost always start on the purchase date.