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Originally Posted by Jonrox
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.
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I understand what you are saying, and you could argue the validity of the CR numbers as I do not know their accuracy or what year(s) they represent. Do you insure you house? Because it is the basically the same sucker's bet that you talk about.
I recommend insurance as it gives my clients a protection option on a product that I view as problematic. It is their option to purchase or not. I just want them to make an educated decision.
Now, how do you think I look if I don't mention anything and a TV I sell craps out 6 months out of warranty. Lets say it is usually not great for repeat or referral business.
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Originally Posted by Rhettzky
I think failure rates are higher than 4 to 6 percent now. It used to be good for flat screens as my 8 year old LG is still working great. However my latest TV had to be replaced at 14 months (Samsung) and the one I bought before that failed in 4 weeks (LG). I never buy replacement warranties but everywhere i looked when buying my last TV it came highly recommended (AVSforum and buyers guides) so I did and it paid off. Best part is that they replaced it with the next year's model and a better series.
At the very least I'd recommend looking into it and negotiating to have it thrown in. Some credit cards have 2 year coverage on electronics so check that out as well.
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Nicely said.