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ken0042 · 10-07-2005, 08:43 AM

I used to sell electronics and appliances, and yes the waranties are a cash grab. But, if you end up needing to use it; it becomes a God send. Here's a few tips:

- Haggle. The salesperson wants you to buy it, the manager wants you to buy it, and it's something that doesn't have a "store cost" associated. On big ticket items, you can often get the waranty for 1/2 the asking price.

- Check the manufacture's waranty. (Check it yourself, don't just trust the word of the commision salesperson.) The fridge example above, many fridges offer longer waranties on the "sealed refrigeration unit." Sometimes 5 years parts & labour.

- The "store credit if you don't use it."- Read the fine print. The store isn't going to mail you out a certificate; you have to redeem it 5 years from now, and often only have a 1 week window to do so. It's not always easy to remeber to do something next week, let alone 5 years from now.

The comparison against insurance is fair, however you must take things into consideration. My last accident was witnessed by a cop, and his words to me were "I probably would not have been able to avoid it either, but technically you were in the wrong; here's your ticket." The total payout from that accident was around $150K. Without insurance, I would still be paying for that 13 years later.

Insurance is to cover you for losses that you cannot afford to pay on your own. For that reason I may get the $400 waranty on my $2000 TV, but not the $10 waranty on the $50 phone. Both are proportionally the same, but I can replace a $50 phone easy- $2000 TV is a differnet story.

In any case, I am very happy it worked out positively for you, Transplant.

Edit- adjust my math.

10-07-2005, 08:43 AM	#16
ken0042 Playboy Mansion Poolboy Join Date: Apr 2004 Location: Close enough to make a beer run during a TV timeout Exp:	I used to sell electronics and appliances, and yes the waranties are a cash grab. But, if you end up needing to use it; it becomes a God send. Here's a few tips: - Haggle. The salesperson wants you to buy it, the manager wants you to buy it, and it's something that doesn't have a "store cost" associated. On big ticket items, you can often get the waranty for 1/2 the asking price. - Check the manufacture's waranty. (Check it yourself, don't just trust the word of the commision salesperson.) The fridge example above, many fridges offer longer waranties on the "sealed refrigeration unit." Sometimes 5 years parts & labour. - The "store credit if you don't use it."- Read the fine print. The store isn't going to mail you out a certificate; you have to redeem it 5 years from now, and often only have a 1 week window to do so. It's not always easy to remeber to do something next week, let alone 5 years from now. The comparison against insurance is fair, however you must take things into consideration. My last accident was witnessed by a cop, and his words to me were "I probably would not have been able to avoid it either, but technically you were in the wrong; here's your ticket." The total payout from that accident was around $150K. Without insurance, I would still be paying for that 13 years later. Insurance is to cover you for losses that you cannot afford to pay on your own. For that reason I may get the $400 waranty on my $2000 TV, but not the $10 waranty on the $50 phone. Both are proportionally the same, but I can replace a $50 phone easy- $2000 TV is a differnet story. In any case, I am very happy it worked out positively for you, Transplant. Edit- adjust my math.