"You want the five-year extended warranty?" That's what I inevitably hear from the concerned -- and salivating -- salesperson as I make a major purchase. I can almost understand the rationale on, say, an HDTV or refrigerator. But too often they even pitch it when I buy a $30 MP3 player.
This drives me nuts for a couple of reasons. Philosophically, I can't stand the idea that a manufacturer doesn't believe their product can withstand a year's worth of use. It's capitalism at its best, trying to squeeze every nickel out of my pocket.
At the end of the salesperson's pitch, I always turn them down.
"I Want To Return It" Guarantee
It might be that consumers aren't buying extended warranties, so retailers have a new strategy. They're teaming up with Assurz, a third-party company that, through the retailer, sells a 90-day return guarantee. It essentially gives you three months to play with the product. If you're unhappy with it, pack it up in a prepaid shipping box, send it back, and you'll get all your money back, including tax and shipping.
I first heard about the Assurz guarantee through TigerDirect. But other merchants -- TheNerds, for instance -- are also using the service.
What's It Cost?
Of course, it isn't free. You pay a fee -- about 3 percent of the cost of the product. So on, say, a $1600 computer, it'd cost you $48.
I don't think it's worth it for run-of-the-mill products, especially those that cost under $300 or so. But there might be two situations where the fee could be worth it.
The first is for a big purchase you're unsure about--a $2500 HDTV, say. Who knows, you may be afraid it's not really what you want; you won't like the picture after watching for a while; or you'll just get buyer's regret. So a $75 insurance policy might be a good idea.
The other reason might be that you found that HDTV for a great price, but you're feeling queasy about the company you're buying from. You might be getting a refurbished product or something that was returned by another customer. For $75, you won't have to fight with the company to take it back.
The Fine Print
Is there a catch? Probably, but I can't find it.
Assurz's FAQ says that the company will refund your money only if "the merchant can?t return or exchange your merchandise in a satisfactory manner." I looked at TigerDirect's return policy and it's pretty clear that in order to return a product, it needs to be defective. (I've purchased items from TigerDirect with -- knock on wood -- no problems.)
I plucked out a few items from the Assurz FAQ that answer my other questions.
Talkback
Cheapskate that I am, I haven't purchased anything expensive in years. So for the time being, I won't have to bother with Assurz.
But what about you? Do you think the Assurz plan is pure bunk -- or are you ready to sign up? You can use Comments below or if you'd prefer, fire an e-mail right into my in box.
Thanks for your insights, Steve. It?s always good to hear how the service is perceived. We do get asked ?what?s the catch?? but we haven?t found one yet and hope that is understood by everyone. It is really important for us to be clear on this new service and how it works, so we take all comments to heart. For example, one point you make is that Assurz will refund your money only if the merchant can?t or won?t. Let us clarify: our merchants would like to handle their own returns related to defects and exchanges. They do this because they have the merchandise and are thereby best able to satisfy the customer?s those types of requests. However, our rule is simple: dissatisfied consumers can always get a refund from Assurz, and are fully able to do so without contacting the merchant. That wasn?t very clear on our FAQ so, thanks to your comments, we?ve amended the wording on our site. Steve Hoffman, CEO Assurz.
Do not use this service it is a sham. This company is a farce and slipshod.
I bought an item from TigerDirect and used Assurz. The item had to be returned.
This was over a month ago. I got an e-mail from Assurz on 5-30-08 saying the refund check was on the way. To date NOTHING.
Don't buy from Tiger Direct or use Assurz unless you want to get ripped off and screwed over.
There are other companies who will treat you with respect and whose word is good.
Stay as far away as possible from Assurz and Tiger Direct. Order elsewhere and spare yourself the nightmare of getting jerked around.
I purchased an item from CompUSA (aka TigerDirect) on the strength of the promoted 90-day return privilege in exchange for paying a small additional fee. I got the item, but no info on the 90-day plan. After emailing Comp for the information on the missing plan papers, I found that the item that I ordered was not worth a dadgum and wanted to return it. I eventually got an email stating that the program had been discontinued and that Comp was refunding the 49-cent fee back to my card. What a crock!
Well, of course they are a scam and a sham, JoeW!! Can't you tell by the name? One of the major clues is any website that has an unexplained "Z" at the end of its name is automatically bogus. "Assur Zee." What language is that? Dutch (Zuider Zee)? What does it mean? Other clues are phony sounding business names that no one else would think of using until the names appear in print somewhere. Clue>Well, of course they are a scam and a sham, JoeW!! Can't you tell by the name? One of the major clues is any website that has an unexplained "Z" at the end of its name is automatically bogus. Other clues are phony sounding business names that no one else would think of acessing until the names appear in print somewhere. For example, "But, wait! If you call right now...." Sheesh, JoeW.