AVS Forum banner
Status
Not open for further replies.
1 - 6 of 6 Posts

·
Registered
Joined
·
21 Posts
Discussion Starter · #1 ·
I bought a TH-42PX50U a few weeks ago. After a lot of wheeling and dealing, I was able to get the set for $$$$ at Circuit City. I also purchased the warranty because the salesperson leaned on me pretty heavily to buy it, and because of the option to return the warranty within 30 days. The warranty is $549 for 3 years. (The price I paid for the television is relevant because should the TV turn out to be a lemon, I'll get the $$$$ I paid, not the retail price).


Are these stories about pixels burning out and the like largely scare tactics to get the consumer to buy their overpriced warranties, or defects that occur on a regular basis?


Are there statistics about the defect rate on these sets available yet?


I like the warranty protection, but it seems absurd to pay almost 25% of the value of the TV for the warranty...I guess I'm just looking for confirmation of that...
 

·
Vendor
Joined
·
31,444 Posts
Nice to have an extended warranty but not for that price. Anyone can buy an extended warranty from Warrantech as long as there is at least 90 Days parts and labor warranty left on product. They are about half the price and extend the warranty for 4 Additional years unless the plasma has a 2 year warranty then they will go 3 additional.


There is no warranty that I know of that covers a SINGLE pixels burning a solid color or going out. If they promised you this I would get it in writing from the manager and keep the warranty!!! Sooner or later odds are a pixel will have a defect then you can get a new plasma seeing a pixel cannot be fixed.
 

·
Registered
Joined
·
1,066 Posts
IMO you're right about the extended warranty not being worth the $.


No wonder the salesman "leaned" on you to buy the warranty. Of the $549, probably $400 or more represents pure profit to the store, of which he'll get a large share. This most likely amounts to more than the margin they made on the TV itself.


AFAIK, actual statistics about failure are known only to God, the manufacturer, and the warranty underwriters, and they ain't talkin'. But it would probably be a safe guess that failure rates are pretty low, because it costs mfrs a lot to fix things under warranty. And, like most electronic products, the great majoprity of trouble will probably occur during the first year of use.


1/4 of the product's value is indeed a lot to pay for a warranty. And keep in mind you'll only get the $$$$ back if the plasma fails completely and is irreparable. In most cases they will be able to repair it for a lot less than $$$$ and you can bet that, even then, they will take the TV and mess with it for a few weeks before deciding to refund your $$$$.


If you bought with a premium credit card or AmEx card, the CC company probably will extend your 1 yr. mfr's warranty for another year, to a total of 2 years. Buying additional coverage beyond that for $549 is not a very good investment IMO.
 

·
Registered
Joined
·
59 Posts
Can you really return the Extended warranty?


I guess it makes sense - you're still covered by the Mfg. warranty - so you haven't really consumed any "service" - but if they can be returned, I'm surprised they'd be willing to sell the TV at one price as long as you take the warranty (that you could return....)


Do other B&M's have similar policies?
 

·
Premium Member
Joined
·
18,319 Posts
Quote:
Originally Posted by RickInMA
Can you really return the Extended warranty?


I guess it makes sense - you're still covered by the Mfg. warranty - so you haven't really consumed any "service" - but if they can be returned, I'm surprised they'd be willing to sell the TV at one price as long as you take the warranty (that you could return....)
Yeah you can return the CC warranty during the first 30 days just like returning the TV itself. I'd return that overpriced CC warranty immediately and buy the better/longer Repairmaster warranty for a little over half the price of that CC one.
 

·
Registered
Joined
·
446 Posts
I work at CC and it sounds like you received some inaccurate information about the protection plan. The plan does not cover single pixels going out. Instead, it takes the manufactuer pixel coverage (which can vary from manufacturer to manufacturer) and extends that for the term you purchased.


Also, the plan is a service plan which means that if something goes wrong then they will first attempt to repair the product. If it can't be repaired or is deemed too expensive to repair then they will give you a brand new set that is comprable (since likely the same model will no longer be available). If that happens, then you will also be given the option to upgrade and pay the difference between the value of the set they offer you and the set you'd like to get instead.


The store does not make as much in margin on the warranty as is being guessed here ($400+). Without giving specifics, the actual profit margin on warranties for CC is less than 50%. Also, CC employees haven't been on commission for nearly 3 years now so the sales associate doesn't receive any kind of monetary gain when you buy the warranty.


As for the service plan's usefulness...well, that's a decision you have to make. The average repair cost for a plasma TV is $400, which is quite a bit but still lower than the average repair cost for a large LCD ($1000). In case you're wondering how CC comes up with its warranty prices, the prices are based on the average repair cost and the liklihood that a repair will be needed within the given timeframe. So even though an LCD is more expensive to repair on average, plasmas have a higher rate of needing repairs than LCD. How does CC make money if the average repair cost is $400? Well, that's what it would cost you, but it doesn't cost CC that much to repair it for you because they have contracts with local repair shops.


If you want my recommendation, here is a list of things based on my 6 years' experience that I would always buy an extended warranty on:

DLP/LCD projection (if nothing else, for the bulb replacement)

Plasma TV

Laptops

Camcorders (if you plan to take advantage of the annual cleanings)


If I were you, I'd keep the warranty. If you change your mind down the road you can always cancel it. They don't tell you that when you buy it but if a year from now you want to cancel it just go in and ask to cancel it and they'll fill out a one-page form and fax it out for you. It takes about 4 weeks to receive a check in the mail for the remaining pro-rated amount.


For what it's worth, I'm likely going to buy the 50" HD Panasonic and I'll be getting the warranty if I do.


Hope this helps
 
1 - 6 of 6 Posts
Status
Not open for further replies.
Top