edward@ukecc.UUCP (Edward C. Bennett) (10/17/85)
In article <3230@teklabs.UUCP>, rafaeld@teklabs.UUCP (Rafael De Arce) writes: > > Besides, When you buy an extended warrenty, what the manufactorer is sublim- > inally saying is that the product will fail long before its useful life has > been achieved OR it's a way to take your money based on the fear of excess- > ive repair cost. > If the manufacturer knew thier product would fail in 3 years, they would lose money by selling a 5 year warrenty. They certainly don't want to have to fix your unit for free. The motive for the extended warrenty is pure profit. They know thier product can last for at least 5 years. So by selling this "extended warrenty plan", they simply get more of your money. Sure, some units will fail under warrenty, but those are the minority. In the long run the company makes a profit. Remember: If it wasn't profitable, they wouldn't do it. -- Edward C. Bennett UUCP: ihnp4!cbosgd!ukma!ukecc!edward /* A charter member of the Scooter bunch */ "Goodnight M.A."
hrs@homxb.UUCP (H.SILBIGER) (10/22/85)
Extended warranty plans are insurance policies. You are paying a known quantity of money to protect against the loss of an unknown quantity. Insurance companies also make money, yet most people carry home, car and life insurance. To decide whether to buy an extended warranties you have to evaluate the benefits and risks. I would not buy one on a refrigerator, they hardly ever fail. I have one on an electronic air cleaner, and it has well been worth my while. Many extended warranties include maintenance. It may not be a bad idea on a VCR, which requires a lot of maintenance. Herman Silbiger ihnp4!homxb!hrs