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Posted by Aaron J. Bossig on 02/01/07 18:15
Stan Brown <the_stan_brown@fastmail.fm> wrote in
news:MPG.202b8798dbf6d81998a967@news.individual.net:
> Wed, 31 Jan 2007 22:00:47 -0600 from Aaron J. Bossig <linkvb06
> @SpammersWillBeExecuted.ptd.net>:
>> The manufacturer's extended warranty, on the other hand, is a legally
>> binding contract entitling you to certian satisfaction should the
>> product fail under normal circumstances. It's worth the money in
>> that you have an absolute guarantee that your product will be
>> repaired/replaced.
>
> It *may* be worth the money, but probably isn't.
>
> Multiply the probability the unit will need replacement, times the
> cost of replacing it, and compare that to the cost of the warranty.
This is the question you should ask yourself any time you're offered
an extended warranty.
> For most durable goods the extended warranty is a horribly bad deal
> for consumers because it's a hugely profitable item for sellers.
I'm sorry, but I just don't understand this logic. Why is an item a
bad deal simply because the seller makes money off of it? That's what
sellers are supposed to do. The real question is, does the service
sold provide enough value for what the customer paid for it?
There are some items for which an extended warranty is a given: Laptop
computers and high-end TVs. The chances of something going wrong are
fairly high, and the cost of repair/replacement makes the initial
warranty purchase a more practical alternative. Other items, such as
desktop PCs, mp3 players, and yes, DVD players, are less likely to be
serviced, and usually I'd advise getting the warranty only if the price
is exceptionally cheap.
Extended warranties are neither good nor bad, it's just a matter of
what you get out of the deal.
--
Aaron J. Bossig
http://www.GodsLabRat.com
http://www.dvdverdict.com
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