Alt Tv Rewind

JD44.3UJO9TJul 17, 2002, 4:53 PM ETalt.tv.simpsons

After Moe shoved Lisa's crayon back up Homer's nose ("That's right, I'm a surgeon", Homer said, "Extended warranty? How can I go wrong?" Obviously, this was presented as a dumb thing to do. So why, I ask, are extended warranties supposed to be dumb? They seem like a good idea to me (and I'm a bright guy) -- unless there's something about them I don't know about.

Richard LyonsJul 17, 2002, 5:55 PM ET↩ JD44.3UJO9Talt.tv.simpsons

"JD44.3UJO9T" <jd44.3ujo9t> wrote in message news:[email]...

I see your point. That is to say I saw it.

Rich:L

jason pJul 21, 2002, 2:07 PM ET↩ Richard Lyonsalt.tv.simpsons

I saw his point. That is to say i seen it.

On Wed, 17 Jul 2002 22:55:56 +0100, "Richard Lyons" wrote:

R H MenzelJul 17, 2002, 9:17 PM ET↩ JD44.3UJO9Talt.tv.simpsons

JD44.3UJO9T <jd44.3ujo9t> wrote in message news:[email]...

Almost every extended warranty is a waste of the additional money. You are then locked into whatever the fine print says.

Remember the Daffy Duck/Porky Pig cartoon where Daffy is selling insurance? Same deal!

-Bob

Peter SmythJul 17, 2002, 7:01 PM ET↩ R H Menzelalt.tv.simpsons

"R H Menzel" wrote in message news:[email]...

a

me

know

insurance?

I remember it well. I used to have a part-time job at an electrical retailers (Currys) and the company made 2.5 times as much profit from extended warranties and delivery and installation as they did from sales - about 80% of customers *don't* use their extended warranties, so the company makes 100% profit from these people. My advice to anyone considering an extended warranty on a large purchase is to shop around for insurance - chances are that you'll save a packet. My parents bought a ï¿½3800 television recently and the extended warranty was ï¿½950. They managed to get almost identical cover from Royal Liver Insurance for ï¿½220.

Ciao Peter

P.S. Glad you like the sig., Bob.

JMSinLAJul 17, 2002, 8:15 PM ET↩ Peter Smythalt.tv.simpsons

Royal Liver Insurance? Does the queen have a drinking problem?

Peter SmythJul 18, 2002, 6:59 AM ET↩ JMSinLAalt.tv.simpsons

"JMSinLA" wrote in message news:ah51er$8ct$[email]...

Yuk, yuk, yuk. Prince Philip certainly does. ;-) (It's actually pronounced Royal LIVE-ER Insurance, anyway. Don't ask me why.....)

Ciao Peter

KatijaikatJul 18, 2002, 12:09 PM ET↩ Peter Smythalt.tv.simpsons

Well, "livery" is also pronounced "LIVE-er-ee." Maybe they're derived from the same source.

R H MenzelJul 18, 2002, 2:50 PM ET↩ Peter Smythalt.tv.simpsons

Why?

(oh, sorry!)

-Bob

Peter Smyth wrote in message news:ah672f$1t5$[email]...

almost

fishyJul 17, 2002, 9:09 PM ET↩ R H Menzelalt.tv.simpsons

I agree with Bob... massive waste. This is almost pure profit for the retailer. Electronics places and so on are always pushing them really hard, but most people never use them. If you read the fine print, the additional coverage is almost always minimal.

They say something like "If anything goes wrong, you bring it in, and if we can fix it in a week, we'll give you a new one free!" and I think "Wow! That's great..." Then you look at the fine print and it covers only manufactures defects, and there is a deductable? And so on and on... It basically pushes the profit margin on a product up 30%.

jason pJul 21, 2002, 2:07 PM ET↩ fishyalt.tv.simpsons

some fine print even says that the warranty isn't honored (mainly from mom and pop shops). larger places will also gouge you later after they tell you that the part you need isnt covered because they know that you are obviously gullible.

On Wed, 17 Jul 2002 21:09:27 -0400, fishy wrote:

JD44.3UJO9TJul 21, 2002, 10:49 PM ET↩ jason palt.tv.simpsons

----- jason p (Sun, 21 Jul 2002 18:07:53 GMT) -----

Interesting. Well, I purchased a Sony MiniDisc recorder about three years ago, and I bought the E.W. Eventually -- maybe within a year? -- it developed a problem, and I took in to Best Buy, and it was repaired in a few days free of charge. That's one experience where the buyer weren't burned. :-)

Alan HamiltonJul 22, 2002, 1:30 AM ET↩ JD44.3UJO9Talt.tv.simpsons

On 21 Jul 2002 21:49:05 -0500, "JD44.3UJO9T" <jd44.3ujo9t> wrote:

It wasn't free -- you had to pay for the extended warranty. How much was that vs. the cost of buying a new player at the time?

JD44.3UJO9TJul 22, 2002, 7:43 PM ET↩ Alan Hamiltonalt.tv.simpsons

----- Alan Hamilton (Mon, 22 Jul 2002 05:30:25 GMT) -----

Touchï¿½. It was only like forty bucks -- worth it to me just for the peace of mind (since this was a REAL warranty).

Dan OveresJul 17, 2002, 10:38 PM ET↩ JD44.3UJO9Talt.tv.simpsons

"JD44.3UJO9T" <jd44.3ujo9t> wrote in message news:[email]...

I had a fellow who worked as a sales droid for an electronics retailer explain to me that extended warranties work on the "bathtub principle". Now, it is hard to explain without graphics, but try to imagine this:

Think of a cross-section of a bathtub -- it basically looks like a big U. The vertical axis (Y) is "Probability of Failure" and the horizontal axis (X) is "Time".

Most electronics will either fail very early in their lifetime or after a long period of service. So, at the far left side of the X axis the chance of failure is high...this is the upper left part of the U.

After a period of time if the object hasn't failed (such as during the burn in process) the chance of failure drops drastically. This is the major downslope of the U. Most manufacturer's warranties will still cover you during this time frame.

For the next while the chance of failure remains low. This is the bottom of the bathtub cross-section and this is also the period of time where the extended warranty normally covers you. You have paid big $ to protect your investment during the point in its life where its chance of failing is at its lowest.

After a product is a few years old, the chance of failure once again begins to rise -- this is the upslope of the bathtub and completes the U shape. By this time both the OEM warranty and the extended warranty have both expired.

It's not a myth that products seems to fail just after the warranty expires -- companies do statistical analysis to determine when a product is likely to fail and adjust the warranty accordingly.

It also depends on the item. My folks bought a VCR and paid something like $75 for the extended warranty. Sure, they are covered for three more years but by the time the manufacturer's warranty has expired the product is obsolete and it would be cheaper to buy a new one anyway.

You know the salesmen see extended warranties as pure gold -- look at how hard they push you when you refuse to buy one. "Please, sir, would you sign this waiver stating I explained the extended warranty to you and that you refused to purchase it?" "If you change you mind you have seven days to come back and purchase the extended warranty." "Are you sure? This is cheap insurance...."

I love turning down warranties and watching them squirm....

Paul HyettJul 18, 2002, 2:13 AM ET↩ Dan Overesalt.tv.simpsons

On Thu, 18 Jul 2002, an infinite number of monkeys, masquerading as Dan Overes typed this -

How about : anyone daft enough to get one should be drowned in a bathtub? :)

I tell them before I even consider buying anything, *not* to try and sell me an extended warrantee. If they persist, I tell them where to stick their product (well, not really, but I do walk out of the store).

jason pJul 21, 2002, 2:08 PM ET↩ Paul Hyettalt.tv.simpsons

ive done the same thing many times. usually when i am shopping for electronics i am purchasing multiple items ( i usually get an itch to buy a lot of new things). i simply tell them that the more they try to jerk me around, the fewer items i will end up buying. even if you dont intend to but a bunch of things, act as if you are. they usually keep quiet.

On Thu, 18 Jul 2002 07:13:46 +0100, Paul Hyett wrote:

JD44.3UJO9TJul 18, 2002, 3:40 AM ET↩ Dan Overesalt.tv.simpsons

----- Dan Overes (Thu, 18 Jul 2002 02:38:42 GMT) -----

Great explanation! Clear as crystal. Now it all makes sense! Boy, what a scam!

R H MenzelJul 18, 2002, 2:53 PM ET↩ JD44.3UJO9Talt.tv.simpsons

JD44.3UJO9T <jd44.3ujo9t> wrote in message news:[email]...

Now, with the money you've saved on warranties....GO OUT AND BUY LOTTERY TICKETS!

-Bob

JD44.3UJO9TJul 18, 2002, 10:18 PM ET↩ R H Menzelalt.tv.simpsons

----- R H Menzel (Thu, 18 Jul 2002 18:53:47 GMT) -----

Whoo-hoo! Lottery tickets? How can I lose?!

Alan HamiltonJul 19, 2002, 3:18 AM ET↩ JD44.3UJO9Talt.tv.simpsons

On 18 Jul 2002 21:18:53 -0500, "JD44.3UJO9T" <jd44.3ujo9t> wrote:

Let's buy internet stocks!

R H MenzelJul 19, 2002, 3:14 PM ET↩ Alan Hamiltonalt.tv.simpsons

Alan Hamilton wrote in message news:ah8egq$r0sno$[email]...

LOTTERY

I think I can get us a deal on Enron stock!

-Bob

Paul HyettJul 20, 2002, 2:35 AM ET↩ Alan Hamiltonalt.tv.simpsons

On Fri, 19 Jul 2002, an infinite number of monkeys, masquerading as Alan Hamilton typed this -

Or *any* kind of shares at the moment!

ï¿½Jul 19, 2002, 2:35 PM ET↩ JD44.3UJO9Talt.tv.simpsons

Another point noone's brought up is that the salesperson usually gets 40-70% of the price paid for the extended warranty. That's one reason they push them so much.

R H MenzelJul 19, 2002, 9:06 PM ET↩ ï¿½alt.tv.simpsons

? wrote in message news:[email]...

principle".

what

Good point! And actually, if you're paid on commission, the only reason to push them.

David GaudineJul 18, 2002, 10:27 AM ET↩ JD44.3UJO9Talt.tv.simpsons

In article ,

I agree with the answers you've already seen - unlikely to pay off, even if it does you're getting something obsolete and you'd be better off putting the warranty money into something modern, etc. Plus, if it breaks down, the repair bill might be less than the cost of an extended warranty. So, the warranty will only pay off if the item breaks down during the extended coverage and can't be repaired cheaply. I don't think that's ever happened to me.

However, one could perhaps argue that if once in your life you're buying something out of your usual budget and you're frantic about what you'll do if it breaks down, it might make sense to consider an extended warranty, for peace of mind if nothing else. I wouldn't, but it might be worth thinking about.

For normal purchases, like if you buy 10 items at $1000 each during the next 5 years, don't buy the extended warranty. If one of them does break down, buy another one with the money you saved, you still come out ahead and you get the latest model in the deal.

Once in my life, I did foolishly buy an extended warranty. The store went out of business 6 months later (before the extended warranty started.)

I got a call last week from Sears, offering me a service contract on my microwave. She pointed out that it's not just an extended warranty, it's a service contract. Once a year, someone would come to my home to service the microwave. Really, I'm supposed to pay someone so that I can wait in my home for them to come and tell me that my microwave still works?

Scott MunroJul 18, 2002, 10:30 PM ET↩ David Gaudinealt.tv.simpsons

On 18 Jul 2002 10:27:44 -0400, [email] (David Gaudine) wrote:

I have a service contract on my furnace which covers routine maintenance and parts and labor on all repairs (or almost all; I don't remember the exact provisions offhand, but I've never had a repair which wasn't covered), and it's a very good deal for me, given that my furnace is probably 25 or 30 years old and needs repair with some frequency. Although I've never done the math, I figure that over the years, it's more than paid for itself, which is more than my homeowners insurance has ever done.

It does seem kind of dumb for a microwave, though.

flem manJul 19, 2002, 5:14 AM ET↩ Scott Munroalt.tv.simpsons

I bought a 52" big screen a few yrs ago from a semi-major electronics chain and was suckered into the 5yr warranty for $300ish. 9 months later the chain has declared bankruptcy and the tv's power supply board gives up.The place that did their repairs said the chain already owed them several thousand dollars in warranty repairs which they couldn't get their money due to it being bankrupt so I had to pay cash and try to fight the chain to get my money back. I ended up being out over $700 between the price for the warranty and the repair for a $1900 tv. Live and learn, never again.

Larry BudJul 23, 2002, 8:42 AM ET↩ JD44.3UJO9Talt.tv.simpsons

Do you honestly think a company would offer an extended warranty if they didn't make money off of them in the long run?

"JD44.3UJO9T" <jd44.3ujo9t> wrote in message news:...

Mr SpiffyJul 23, 2002, 11:31 AM ET↩ Larry Budalt.tv.simpsons

THANK YOU for stating this in perfectly concise terms. (no sarcasm)

On 23 Jul 2002 05:42:47 -0700, [email] (Larry Bud) wrote:

Mr SpiffyJul 23, 2002, 11:29 AM ET↩ JD44.3UJO9Talt.tv.simpsons

Why?

OK - do yourself a huge favor and read "Financial Freedom" by Charles Givens.

Basic nutshell - you have a car loan. it is an amortized load (you pay the most interest in the beginning of the loan period). Extended warranty is a service you won't even use for 3 years - assuming you own the car that long. So, you borrow the money for the warranty and pay the maximum interest on those funds for a service you won't even use for years.

Or, if you sell the car before you get to use the extended warranty you paid for a service which you did not use and will never be reimbursed for on re-sale.

To quote Homer, the Internet King, "Can I have some money now?"

On 17 Jul 2002 15:53:36 -0500, "JD44.3UJO9T" <jd44.3ujo9t> wrote:

Dan OveresJul 24, 2002, 3:55 PM ET↩ JD44.3UJO9Talt.tv.simpsons

From: "Dan Overes"