Pop Quiz: What is the most important part of your computer? Did you guess processor speed or amount of memory? Well, you'd be wrong! Believe it or not, the most critical part of your system is the warranty! It can make or break you – sometimes literally.
The expected useful life of a computer these days is approximately 3 years. After that, the cost to maintain an older system generally outweighs the expense of a new one. It's not that the CPU got slower, or its' memory suddenly shrank – it's just that technology is constantly changing and older hardware cannot keep up with the latest software demands. Plus, the cost to repair any component failure (Hard Drive crash, motherboard malfunction, etc) is typically close to the cost of purchasing a new unit. Computers have been commoditized – they are very cheap. When they break, you toss it out and but a new one. When was the last time you fixed a toaster or blender?
Based on these 2 premises (obsolescence and commoditization), you should be protecting your investment for its' useful life. So, if you expect to realize 3 years of use out of this critical business tool, then why would you not have a warranty to match this same timeframe?
The reason you find ads for incredibly cheap computers these days is partially due to the warranty you get – or rather, don't get. Many systems being sold today come with a 90-day or 1-year warranty. After that, all bets are off and you are responsible for the cost of any repairs. So, if you expect to use the computer for the next 3 years, does that short term warranty still sound like a bargain?
It gets worse. Take great care to read the fine print of your warranty to understand what you are truly getting. Don't just focus on the number of years. Consider these other critical factors:
- Are both parts and labor covered for the entire duration? Sometimes the warranty covers labor for 1-year and parts for 3-years. The real cost is in the labor.
- Will a repair technician come to you? Or, you have to mail in your unit to the manufacturer? A lot of laptops are sold with what is called “mail-in service”.
- What is the response time? If you experience trouble, how fast will your problem be fixed? A week? Next business day? Within four hours?
A computer warranty is very much like an insurance policy. We don't truly understand our coverage until something happens. By then, it's too late and the losses suddenly overshadow the cost of that coverage you regretfully declined. So, then next time you are in the market for a new system take some extra time to review the warranty options. And, don't cheap out otherwise you could end up spending more in the long run.
