Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post

Jonrox · 08-02-2014, 02:00 PM

Good advice from cupofjoe... except for the extended warranty recommendation.

Consumer Reports has found failure rates for flat screen tv's is around 3% during the first 4 years of ownership. The failure rate for offbrands still only ranges from 2 to 4%. The worst manufacturer on the planet has just a 7% failure rate.

Let's say you paid $200 for an extended warranty on a $2000 warranty (I think that's pretty fair), the worst case scenario happens, and the problem can't be fixed and you need a new $2000 TV. Your $200 gamble pays off at 10 to 1. Yet you should be getting at least 30 to 1 odds based on the average failure rate.

Buying an extended warranty is the equivalent of taking $200 to the casino and putting it down on a single number in roulette, but only getting paid 10 to 1 if it hits (it should be 35 to 1). Take your $200 to the casino and have some fun with it. If your number hits, you go buy a bigger tv. If it doesn't, then it's like buying the warranty.

If you wouldn't gamble like this at a casino, why are you gambling like this on a TV and getting even worse odds? The extended warranty is a sucker's bet.

08-02-2014, 02:00 PM	#955
Jonrox Backup Goalie Join Date: Apr 2006 Exp:	Good advice from cupofjoe... except for the extended warranty recommendation. Consumer Reports has found failure rates for flat screen tv's is around 3% during the first 4 years of ownership. The failure rate for offbrands still only ranges from 2 to 4%. The worst manufacturer on the planet has just a 7% failure rate. Let's say you paid $200 for an extended warranty on a $2000 warranty (I think that's pretty fair), the worst case scenario happens, and the problem can't be fixed and you need a new $2000 TV. Your $200 gamble pays off at 10 to 1. Yet you should be getting at least 30 to 1 odds based on the average failure rate. Buying an extended warranty is the equivalent of taking $200 to the casino and putting it down on a single number in roulette, but only getting paid 10 to 1 if it hits (it should be 35 to 1). Take your $200 to the casino and have some fun with it. If your number hits, you go buy a bigger tv. If it doesn't, then it's like buying the warranty. If you wouldn't gamble like this at a casino, why are you gambling like this on a TV and getting even worse odds? The extended warranty is a sucker's bet. Last edited by Jonrox; 08-02-2014 at 02:05 PM.