Extended Service Warranty

[Uniquely]

Originally Posted by thejefe37

Do you guys think these things are worth the cost? Sometimes they're in the $300 range, seems a bit high to me. The only extended warranty I've ever purchased is Apple Care. If you were going to get a new Panasonic Plasma, would you guys get it? The TV is 1050 and the service plan is 349.

Thanks

It really depends upon how much shopping you do... and how much of a hardship it would be to replace any particular item. If you don't buy many big ticket items.... and it would be really difficult for you to replace a certain item... then it may be a good value for you.

However, if you buy fairly big ticket items fairly regularly..... you would quickly come to the realization that if you bought none of these warranties.... all of the money you have saved by not buying them would easily pay to replace the rare item that breaks out of warranty.

In general however.... the vast majority of these things are a very poor value for the consumer. I know this is true from the years that I spent in retail sales when I was younger. The warranties are pushed very heavily, and very large bonuses, spiffs, and percentage commissions are often offered for their sale. This is a very clear indicator that they are almost pure profit for the company selling them... which by default would make it a poor value for the average consumer.