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Plasma Warranty

405 Views 8 Replies 6 Participants Last post by  cheridave
This group has been so useful for me regarding my purchase of 50xs955.

I wanted to get feedback on extended warranty for plasmas- specifically xs955. Is it worth it to get it? I know in general it is a huge money maker for companies and not worth it. But with the cost of the plasma and the technology it uses, I was giving it second thoughts.

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please trust me get it. Long story I will make short because I must post it every week here. I bought a Plasma and a 5 year Philips Priority service contract.2 years in the plasma died. Once the authorized service center confirmed the warranty company called and said they were sending a brand new one out ASAP. THe next day they said Philips does not make that model so they were sending out the new model.So they were sending ma a HD plasma because my Ed plasma died. The next he said that they were instead cutting me a check for $4,400 and I could pick out the plasma i wanted and I did. It was just a great deal. I just bought a Sharp LCD and got the same coverage it just makes me feel more comfortable. Even if you never use its there just incase.My coverage on my new Sharp LCD ends in 2009.Can't beat it,I have no worries.I say go for it.Anymore question please feel free to ask. J.H.
Never buy extended warranties, they are a waste of money.
Even after what I said.How can that possible be.You just spent thousands on a brand new display and a brand new technology.You have to get one in my opinion.So it costs you an extra few hundred bucks.Its worth it.If I did not have it on my first plasma it would have cost me $4,400 to replace instead it cost Philips Priority.I don'tknow how you can says its a waste of money. J.H.
Most of the time extended warranties are highly beneficial to the seller, and never used by the buyer. One story like JH's doesn't determine the issue -- obviously if 50% of plasmas conked out within a couple of years like JH's, it'd be well worth it to spend a few hundred bucks on a warranty (it'd also be impossible, since the people who sell warranties (1) aren't numbskulls, (2) would like to avoid going bankrupt just as much as the next guy and (3) would price their warranties accordingly).

I suspect it is more likely that JH's story is fairly atypical. Unlike the case with RP LCD and DLP units, where the forum threads are replete with NUMEROUS horror stories about lamp and ballast failures necessitating repeated returns and service calls, there are relatively few such threads re: plasmas. If I were buying an RP LCD unit, I'd get the EW for sure, since the chances of problems appear pretty high. With a plasma, not so clear that the EW is a must have.

The issue is what are you willing to pay to feel comfortable and how much risk are you willing to accept. Some people purchase an extended homeowner's warranty every year to cover home maintenance costs -- I pocket the money (and by this I don't mean spend it on a plasma, I mean put it aside in an account I call "home maintenance") and take my chances. Maybe someday I'll need a big repair (that would actually have been covered by the warranty - always an issue). in which case I'll be sorry. However, maybe I won't (in which case I'll have made out like a bandit). Of course, if I DID spend the $$ for the warranty every year and DIDN'T ever use it, I'd feel like a bit of an idiot, since pretty much every discussion of extended warranties I've read suggests they're generally not worth it. Just a matter of what risk you're willing to accept.

Also, before deciding, think about what replacement costs may be in the future. If you buy a unit for $5K today and use an credit card that automatically extends the warranty from 1 to 2 years, based on recent trends you may be looking at a replacement cost in 2 years of more like $2K for a unit with better technology than the one you buy now. Thus, if your plasma bites the bullet in two years and a day, you certainly will not be looking at a $5K replacement cost and quite likely will be looking at much less. (Think back to what plasmas were going for in 2001-2002.)

If you're the kind of guy who's likely to buy a new plasma in 3 years anyway when 50" panels with much better technology may well be going for what 42" ED units cost today, then skip the EW. If the idea of dropping another 2 grand or so on a TV in a couple of years gives you (or your spouse!) the willies, maybe you'll feel more comfortable spending the $$ today on an EW.
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salaryman - Exactly! J H's story is 1 out of 1,000. Extended warranties are bad odds. Most units will last WAY BEYOND the extended warranty period. If I bought an EW for all my electronic equipment it would be in the THOUSANDS of dollars. Bad investment, plain and simple.

Besides the one year typical warranty that comes for free, you also have rights as a consumer. If I purchased a plasma for $5,000 and it died in two years, warranty or NOT, I would demand a refund. The seller has an obligation (implied warranty for fitness of purpose) to NOT sell a LEMON. If a unit that can be reasonably expected to last for 10 years dies in two, you have consumer protection laws to resort to if your seller is unsympathetic to your situation.

Bottom line, extended warranties always have been and always will be nothing more than additional profit for the retailer, and a BAD BET for the consumer.

Don't waste your money on it, get a better speaker or something else with the money.
These extended warranty threads often attract posts about how some individual really made out under the warranty, and his conclusion that, therefore, they must be a good thing.

Go to Las Vegas, and you will find plenty of people who have hit jackpots. Does that mean gambling is a wise investment? Of course not, and the fact that people do sometimes collect under an extended warranty is no more convincing evidence of their inherent value.

The only way to evaluate things like insurance is to look at the overall picture of how they work. The comission on EW's is huge (which is why retailers push them so aggressively) and the percent of premium income paid out to cover claims is a fraction of what it is with almost any other type of insurance. The companies who underwrite these policies have more data about claims experience for the items covered than anybody, and do not price them to lose money.

IMO one type of Extended Warranty that does make sense is the one-year addition to the mfr's warranty offered by meny premium credit cards. The fact that they offer this extension free gives you an idea of what the actural costs of such policies are.
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Hey all I know is I feel much more comfortable with an extended warranty.I like having it and will always get one with my purchases of plasma and LCDs.If you don't want it good luck.I'll never buy with out it.For a few hundred bucks its worth the peice of mind it buys me in return. Good luck on not having one. i certainly wouldn't do that but we all have choices to make.I feel getting it is the right choice. J.H.
Its a personal choice. You have to do what will give you peace of mind.

Good luck in your decision.

And on that note this thread is done.

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