For the naysayers that say *warrantys* are *useless* - Page 2 - AVS Forum
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post #31 of 47 Old 09-17-2012, 01:39 PM
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Quote:
Originally Posted by grambo View Post

Your post somewhat affirms what the "warranties are a bad value proposition for consumers" crowd are saying though. As a consumer, your expected outcome on the warranty is significantly less than the cost (say $300), given the probability you will need/use the warranty (under 30%). From your post, you are buying intangible value/peace of mind, which is fine if you place such a value on it. But if you just do the math, it's not a good value for a consumer, but it's a great (and highly profitable) value for the retailer, which is why BB and other stores push so hard on them, and make significant commissions.
For me personally, I just use my VISA cards automatic doubling of manufacturer warranty for consumer purchases.

Well, I said some people see value in warranties/protection plans and some don't. Mathematically isn't the only way to look at something concerning value. Yes, I know I am paying for peace of mind, and I don't really mind paying for it. As far as profitability goes, yes the plans are very profitable for the retailer but that doesn't mean that they never have to pay out on them. I guess I don't really see the big deal when a retailer sells something with a significant margin. They're in business to make money, after all. I can also guarantee you that when someone sells you a protection plan at Best Buy they make zero, zilch, nada on it.

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post #32 of 47 Old 09-17-2012, 03:32 PM
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Originally Posted by grambo View Post

For me personally, I just use my VISA cards automatic doubling of manufacturer warranty for consumer purchases.

Just to clarify, Visa (and Amex etc) providers that add extra warranty coverage don't necessarily double the warranty, they only add one year to the manufacturer's warranty. So if the item has a 2-year warranty, they add one additional year but don't double it.

And not all Visa (or Mastercard) providers offer this automatic warranty, it seems to be reserved for their higher end card (like my Visa Platinum). I have a Citibank Visa that has no warranty extension feature, but my Capital One Visa does.

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post #33 of 47 Old 09-18-2012, 11:05 AM
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Originally Posted by Michael2000 View Post

I don't thing it is a waste of money if the TV going dead after the warranty expired could create undo financial hardship. I do like the fact that BB will cover burn-in.
I read the Best Buy warranty, and one thing that caught my eye was that they have the optoin of giving you "market value" for the dead TV, rather than replacing it. So if after two years, they determine that the TV is only worth 25% of what you paid, then that's what you may get, in lieu of a repaired TV.
Michael

I spoke with my local BB guy today. he said that each store can have their own policy on the replacement, and their stores policy is that they replace it with the current model. I said thats great, but what i the store manager changes the policy? I asked for it in writing. He even agreed he wouldn't buy the warranty if it was 'market value'.
Now makes me think I will 'return' the service policy if model replacement isn't a written policy.
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post #34 of 47 Old 09-18-2012, 12:00 PM
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Quote:
Originally Posted by RandyWalters View Post

Just to clarify, Visa (and Amex etc) providers that add extra warranty coverage don't necessarily double the warranty, they only add one year to the manufacturer's warranty. So if the item has a 2-year warranty, they add one additional year but don't double it.
And not all Visa (or Mastercard) providers offer this automatic warranty, it seems to be reserved for their higher end card (like my Visa Platinum). I have a Citibank Visa that has no warranty extension feature, but my Capital One Visa does.

Oops, you are totally correct and I was thinking +1 year in my mind but had a brain fart and wrote doubling because I'm so used to standard mfg warranties being 1 years these days smile.gif. And yep, only on the premium cards that usually have annual fees ($120 + $50 for extra card for my RBC Avion VISA - but I never carry a balance on it and use the points on airfare, so they are losing a ton of money on me as a customer).
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post #35 of 47 Old 09-18-2012, 12:13 PM
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Consumer electronic failure rates follow what's called a bath tub curve. Components mainly fail early due to defects, which are covered by the manufacturer, or late due to fatigue. They rarely fail in the period covered by extended warrantees. The accuaries who come up with prices know this and take advantage of it.

In aggregate, extended warrantees are extremely profitable for the servicers. Sure, some benefit, but they're a small percentage.

I never buy extended warrantees for the reason cited at the top. It's a very poor investment.
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post #36 of 47 Old 09-18-2012, 03:04 PM
 
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^As mentioned earlier, I only did to make it attractive to a prospective buyer, to allay their anxieties. Even so, five years of coverage for a Pioneer Kuro is probably within the actuary's margin of safety. wink.gif
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post #37 of 47 Old 09-18-2012, 05:40 PM
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I bought my Pioneer Kuro in 2008 and it still looks as good as the day it was turned
on, not a single issue other than I wish it was
60" rather than 50, never considered a warranty but did
Purchase with my Amex Plat card

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post #38 of 47 Old 09-18-2012, 06:34 PM
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Quote:
Originally Posted by dzt41j View Post

I spoke with my local BB guy today. he said that each store can have their own policy on the replacement, and their stores policy is that they replace it with the current model. I said thats great, but what i the store manager changes the policy? I asked for it in writing. He even agreed he wouldn't buy the warranty if it was 'market value'.
Now makes me think I will 'return' the service policy if model replacement isn't a written policy.

If you take the time to read through them, you will find that (nearly...) all Extended Warranties contain either Out-Clauses and/or Loss Minimization Clauses (benefiting the warranty company, NOT the consumer!).
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post #39 of 47 Old 09-18-2012, 06:46 PM
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Quote:
Originally Posted by KidHorn View Post

Sure, some benefit, but they're a small percentage.
I never buy extended warrantees for the reason cited at the top. It's a very poor investment.

It's not a poor investment if you suffer a failure within the EW period. Sometimes an investment doesn't pay off, but sometimes it pays off big. I have profited greatly from four EWs over the past 15 years when i suffered failures, and the amount of money they saved me far outweighs the cost two EWs that i bought and never ended up using. But yeah, if you never suffer a failure during the EW than all it bought you was some peace of mind.

It's like insurance. I've spent tens of thousands of dollars for car insurance policies over the years and i haven't had to use them once so that is a complete and total loss of money. Same goes for medical insurance. An EW on a TV is small change by comparison.

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post #40 of 47 Old 09-19-2012, 09:22 AM
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With car insurance you spend $1k and are protected against hundreds of thousands of dollars of loss. Your $300 service contract prevents a $1000 loss. Not quite the same.

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post #41 of 47 Old 09-19-2012, 09:27 AM
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Originally Posted by adone36 View Post

With car insurance you spend $1k and are protected against hundreds of thousands of dollars of loss. Your $300 service contract prevents a $1000 loss. Not quite the same.

My point is that any insurance policy no matter how small or large is money down the drain if you never use it wink.gif

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post #42 of 47 Old 09-19-2012, 10:21 AM
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Quote:
Originally Posted by dzt41j View Post

I spoke with my local BB guy today. he said that each store can have their own policy on the replacement, and their stores policy is that they replace it with the current model. I said thats great, but what i the store manager changes the policy? I asked for it in writing. He even agreed he wouldn't buy the warranty if it was 'market value'.
Now makes me think I will 'return' the service policy if model replacement isn't a written policy.

Best Buy can't always get replacements. One of my friends has a rear projection DLP TV that was serviced four times over four years before Best Buy gave up due to an inability to get parts and offered him a refund. The refund was ~$600 on a TV he spent $1400 on. $600 was considered the market value for a three year old DLP TV, they wouldn't give him an off the shelf plasma or LCD TV to replace the DLP.

His other option was to wait it out for parts, and then (likely) have the TV fail again.

Someone getting a TV now could run into the same issue in a few years. Replacement parts are not always available and similar models may no longer exist in the showroom.
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post #43 of 47 Old 09-19-2012, 12:42 PM
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Originally Posted by ocellaris View Post

Best Buy can't always get replacements. One of my friends has a rear projection DLP TV that was serviced four times over four years before Best Buy gave up due to an inability to get parts and offered him a refund. The refund was ~$600 on a TV he spent $1400 on. $600 was considered the market value for a three year old DLP TV, they wouldn't give him an off the shelf plasma or LCD TV to replace the DLP.
His other option was to wait it out for parts, and then (likely) have the TV fail again.
Someone getting a TV now could run into the same issue in a few years. Replacement parts are not always available and similar models may no longer exist in the showroom.

What my salesman said was if my model wasn't available they would give me the updated model of mine, i.e. I have an E7000, if it craps out they would give me another "7000", be it the G,H or I.
But again, it's a store to store decision per him.
Don't like it.
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post #44 of 47 Old 09-19-2012, 01:08 PM
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Your salesman is wrong. The 3rd party who administers the warranty will replace it with a ‘like kind and quality’ set. They can either replace it with another TV, either from the store or drop ship you one, or they’ll replace it with a cash settlement equal to the current retail cost of a like kind and quality set.

These guys admin BB's warranty

https://www.newcorp.com/

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post #45 of 47 Old 09-19-2012, 01:18 PM
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Quote:
Originally Posted by ocellaris View Post

Best Buy can't always get replacements. One of my friends has a rear projection DLP TV that was serviced four times over four years before Best Buy gave up due to an inability to get parts and offered him a refund. The refund was ~$600 on a TV he spent $1400 on. $600 was considered the market value for a three year old DLP TV, they wouldn't give him an off the shelf plasma or LCD TV to replace the DLP.
His other option was to wait it out for parts, and then (likely) have the TV fail again.
Someone getting a TV now could run into the same issue in a few years. Replacement parts are not always available and similar models may no longer exist in the showroom.

Hello,
I suppose I got really lucky that I had an SXRD RPTV that is no longer made unlike DLP. I received $1200 towards the purchase of my 60GT50 due to my Sony KDS-55A3000 being scrapped. It was primarily due to my positive experience with my SXRD that I purchased the BB PSP on my 60GT50.
Cheers,
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post #46 of 47 Old 09-19-2012, 01:18 PM
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If a comparable model is available, Best Buy will give you that. A few weeks ago I had a guy with a junked out Samsung UN55C7000, and I gave him a UN55ES7500 as a replacement. He didn't have to pay anything.
BB replacements are supposed to go feature-for-feature when trying to find you a replacement. I don't know of any EW that gives you a replacement based on how much you paid for your original set.

If there's no longer anything comparable to the television you had (counting in-store and BestBuy.com selection), you're supposed to be issued a gift card equal to the original amount you paid.

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post #47 of 47 Old 09-19-2012, 02:12 PM
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Quote:
Originally Posted by fatuglyguy View Post

If a comparable model is available, Best Buy will give you that. A few weeks ago I had a guy with a junked out Samsung UN55C7000, and I gave him a UN55ES7500 as a replacement. He didn't have to pay anything.
BB replacements are supposed to go feature-for-feature when trying to find you a replacement. I don't know of any EW that gives you a replacement based on how much you paid for your original set.
If there's no longer anything comparable to the television you had (counting in-store and BestBuy.com selection), you're supposed to be issued a gift card equal to the original amount you paid.

But the warranty info says they will give you "market value", not what you paid. Market value on a 3 year old TV is probably a few hundred dollars.

So what is right?
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