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Discussion Starter · #1 ·
I found the new SHARP LC-37HV4U in my local Ultimate Electronics. This looks like just what I need for my confined space and it's $1K cheaper than the MSRP at the SHARP Web site. It's my impression that an extended warranty is less important on an LCD than it would be on the plasma screen I had planned to buy. So far, with two LCD displays I've had no trouble.


Any comments? The three year extension is $500 more or less.
 

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It is my impression that extended warranties on consumer electronics are generally a horrid buy.


The question is this: Would you rather spend $500 -- never to be recovered -- on the off chance it save you $2000-3000 down the road?


OR


Would you rather keep the $500 knowing that even if it would've worked out for you to buy the warranty, the odds *always* favor not buying the warranty so if you stick with your strategy for the rest of your life, you'll win?


Mark
 

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As with most electronics, chances are that any troubles will occur during the first year and be covered by the mfr's warranty. Some credit cards also offer an additional year's coverage at no charge.


If there are extra risks with this particular product, it is highly probable that the insurers are well aware of them and have raised their premiums accordingly.


Extended warranties are strictly a gamble, with the odds fixed in favor of the house - these policies generally pay out about 20-30% of premiums in claims, vs. 80%+ for most conventional insurance.


Whenever the subject is raised, you usually will hear from a few people who will say "Well, I made a claim under my extended warranty and you should never pass them up." About as relevant an argument as someone who hits the jackpot on a slot machine thereafter insisting that feeding quarters to the slots is a wise investment.
 

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Also, with consumer electronics, the depreciation is so rapid that extended warranties aren't worth it. Even if the screen is worth over $4k today, if it breaks in three years, I wouldn't be surprised if you could replace for $2k or even less at that time.


In general, items either break immediately after purchase or after many years of use. It is much less likely that you will have a problems between one and five years. Putting the item on a credit card that extends the warranty by a year is probably your best bet.
 
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