USAA Magazine Fall 2006

PHOTOGRAPH BY XXXXXXXXXXXXprice and warranty costs together asyou go. Especially since some discountstores began selling discountedwarranties last year, service plancosts vary widely.3. Is the price reasonablecompared with the productcost? Some service plans areso expensive relative to theprice of the item they’re coveringthat you’d be better offtaking your chances and simplybuying a new item if it breaks. One retailercharges $40 for a four-year service plan ona $150 digital camera. Although the plancovers some things that the free, one-yearmanufacturer’s warranty doesn’t, many wouldprefer not to shell out the extra cash.4. Read the fine print. Mr. DiRocco saysto check to see that the warranty is backed byinsurance that will pay the cost even if the companybacking it has financial problems. Mr. Krughoffrecommends looking for options that allow you touse third-party repair services. Some large retailersinsist you use their in-house technicians, he says,but the quality may not be as good as you’d like.A FEW MORE FACTORSThe past few years, consumers cautious about buyingcostly new products such as flat-panel TVs have spurredgrowth in sales of extended service plans. That trendmay be leveling off as service plans come under increasingscrutiny and buyers feel more comfortable layingdown cash for formerly cutting-edge gadgets.Mr. DiRocco says plans are adding new features,such as coverage against accidental breakage, whichincrease their value. In a related trend, manufacturersare offering shorter warranties. Apple Inc., for instance,provides only 90 days of free support and a year ofrepair coverage on its computers’ basic warranties.Consumers baffled about high-tech devices appreciatehaving 24-hour, toll-free tech support provided byextended plans, Mr. DiRocco notes.So decide what guaranteed service youwant, whether a warranty is likely to deliverit, and how much you’re willing topay for it — before you’re standing atthe cash register or deciding whetherto mail in a check with that flier.And, hey, if you don’t buy thewarranty and the worst happens,just put it on your wishlist for next year.REBATESREVEALEDWhen USAA member Kristen Hensley bought a new cellphone for $350, mentally she only paid $250. That’s becausethe product came with a rebate offer of $100. “I wouldn’thave bought it without it,” the Galveston, Texas, universityemployee says of the hefty rebate.Buyers of products from toothpaste to pickup trucks cashnearly $500 million in rebates annually, according to thePromotion Marketing Association, a New York trade group.An unknown and possibly larger value in rebates goesunredeemed, or the rebates are never even requested.But shoppers who take the trouble pay less for their purchases.According to shopping site TechBargains.com,here’s how to do rebates right:1. See that the item works properly first. Manyrebates require removing the Universal ProductCode, but retailers are reluctant to give refundson products missing the code.2. Follow the offer rules to the letter. If youare supposed to send the original receipt,don’t send a copy. Mail the properly completedpacket before the deadline.3. Check the progress of your request.Call the number or visit the Web siteon the rebate form in a week or two. Ifyour request hasn’t been received, askabout resubmitting.4. Check again. Follow up if you haven’treceived payment within the specifiedtime, usually eight to 12 weeks. Keepcopies of everything you send in caseyou have to resubmit.Rebates can be a hassle. Butthey usually work. “It’s worth it,”Ms. Hensley says. “It just took mefive minutes, and I got $100.”USAA.COM WINTER 2007 USAA MAGAZINE19