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for nearly every repair done out of warranty, you will spend more $$ than it would cost to buy applecare, especially at the prices you can find on ebay.
I had a power supply go out on my wife's imac. Pretty simple part and repair, but it would have cost well over what I paid for applecare.
It's a cheap insurance policy. I get it for every new mac that passes through my hands. Also helps with resale value (if you're the type to get rid of machines in a 3 year window).
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My grand daughter's iMac is sitting on my desk with the monitor showing only colored lines and when I checked, the applecare has expired. :cursin:
I'm going to see if I can start it in target mode and save her files for another computer.
BTW, this is the first Mac computer to go bad in all my years of owning macs.
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The pre-intel rule of thumb was to buy AppleCare for all Apple laptops and consumer desktops.
Given the failure rate of modern Macs, the new rule is ALWAYS budget for AppleCare.
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Instead of Apple Care, I use a credit card that doubles the 1-year warranty to 2 years. I sell my laptop every two years and get a new one. Overall cost of ownership is the same, I think, than keeping it longer, buying AC and then getting a lower price upon eventual sale.
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Both of my flat panel iMacs have had repairs done under Applecare - little known fact is that if you don't live close to an Apple store, they must send you an on site repairman - and we qualify, as we are 2 hours drive from the nearest store.
Money well spent.
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Only buy Applecare for laptops. That is my policy and has served me well for many, many years.
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I never EVER buy applecare - I always make sure my machines are less than a year old or were purchased with applecare applied.
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I recently had to have the motherboard replaced in my 20" imac, a $1,000 repair, free because I ponied up for applecare. I also had the motherboard replace in my macbookpro (one of the very first ones) at no cost.