Plasma TV's, Extended Warranties, and such

[adamstewart]

Hey guys,

I just bought a 42' Panasonic Plasma TV. Model TH42PD50. Awesome.

I bought it from Future Shop (I'm not sure if this chain exists in the US, but basically it's sister company to Best Buy).

Anyway, the salesguy smooth-talked me into buying the extended warranty (as because I did, he dropped the overall price). Didn't seem like too bad of a deal at the time. However, now that I've thought about it, I don't feel I need it, and plus it's way overpriced.

However, I've talked with a couple people and I've done my own research on the subject of extended warranties - namely those offered by the likes of Futureshop and Best Buy, and I'm most likely going to return the warranty. (I've already confirmed that I can do this within 30 days).


Before I return the warranty, though, does anyone have any suggestions for or against doing so? (I should mention that this particular plasma is of the 'newer' technology which is supposed to have a greater half-life.)


Thanks,



Adam


As an aside: do any of you know any problems regarding playing video games (xbox) on plasma tv's - so long as you don't leave a game on pause for any length of time....?

[BusterStacks]

do it, i have "classified" employee handouts from circuit city that state why we have to push these warranties so hard. they are 65% profit and don't cover you during the time the manufacturer does even though it takes off the years of your warranty.

edit: screen burn-in is not a concern on plasma/lcd TVs.

[CallMeIshmael]

I actually just bought one myself like two days ago.


I didnt get an extended warranty, because I've always thought that since they want you to buy it, it is clearly +EV for them.


The guy I talked to at futureshop said that burn in isnt a big problem with the newer models. As long as you dont leave it paused, it should be OK.

(Note: I have heard that in older ones, the logo in the bottom corner of some networks caused a problem, so I will be obsessively watching out for that as well /images/graemlins/smile.gif)

[Nathan183]

Obviously it is +EV for them and thus -EV for you. I have never purchased an extended service plan and don't plan too. But I have also never purchased such an expensive item.

Basically it's like insurance. If you absolutely need this TV, and cannot afford to buy another one if something terrible happens, then you should probably buy the service plan. Otherwise, I'd return it.

[exist]

haha, ok i'm in this exact same predicament. i just bought a 50' panasonic plasma TH-50PX50U for $4000 at best buy (it's being delivered friday). the 4 year warranty cost $400 so it seemed like a reasonable deal. i checked out circuit city and the 3 year warranty there was $700 (anal rape price). anyway, you guys probably think my deal is -EV too, right? how much -EV?

[adamstewart]

[ QUOTE ]
haha, ok i'm in this exact same predicament. i just bought a 50' panasonic plasma TH-50PX50U for $4000 at best buy (it's being delivered friday). the 4 year warranty cost $400 so it seemed like a reasonable deal. i checked out circuit city and the 3 year warranty there was $700 (anal rape price). anyway, you guys probably think my deal is -EV too, right? how much -EV?

[/ QUOTE ]


I did some research on the subject.

Here's a pretty interesting article. (http://www.cbc.ca/consumers/market/files/money/extended_warranties/index2.html)


Try Google searching for "extended warranties" and such. 99% of the material is against them.



Adam

[lu_hawk]

i think the -ev on these contracts is just too big. if it was only slightly -ev then i would say it is ok. like if the ev was $390 and it cost you $400 to buy the warranty then it's ok to lose $10 of ev so you don't have to get pissed off if the thing breaks and you are stuck buying a new one. which is why insurance is usually ok even though the insurance company makes money. but with these extended warranties it's more like you pay $400 for a warranty that has an ev of $100, so it's just not a good deal.

[exist]

thx for the article. looks like i'll be returning the extended warranty. /images/graemlins/smirk.gif

[PorscheNGuns]

If I hadnt had a warranty on my 50" Panasonic LCD tv that I bought 1 year ago, I'd be in the whole about $1200 right now.

-Matt

[siccjay]

[ QUOTE ]
I'd be in the whole about $1200 right now.

-Matt

[/ QUOTE ]

Matt, is that anything like a hole?

[adamstewart]

[ QUOTE ]
If I hadnt had a warranty on my 50" Panasonic LCD tv that I bought 1 year ago, I'd be in the whole about $1200 right now.

-Matt

[/ QUOTE ]


Okay.... now how much did you pay for the warranty?



Aside: Isn't 50' a little too big for an LCD tv? I thought for anything over 32', one should go for the plasma... ?

Adam

[adamstewart]

[ QUOTE ]
thx for the article. looks like i'll be returning the extended warranty. /images/graemlins/smirk.gif

[/ QUOTE ]



Here's the best part!! /images/graemlins/cool.gif



The salesguy proposed the following deal to me: (Remember this is in Canadian dollars)...

- 42' Plasma regular priced at $3499
- I said I wanted a couple hundred dollars knocked off
- At the end of it all, he said he'd knock $200 off the TV and sell me the $600 extended 3 yr warranty for half price.
- Total for TV and WARRANTY = $3599.
- Sounded decent... I took it.

- I get home and look at the receipt. He's marked the TV down to $2999, and charged $600 for the Warranty. (This works out the same price, but they're all about selling the warranty cuz they make a HUGE commission percentage off the warranty compared to the product. - that's why they're always pushing the warranties!). Therefore, they just cut any 'deals' off the item price, but charge full price for warranty.

- I thought, "Hey, I wonder if I can return just the warranty???" As it's marked and sold as a seperate "item" on the receipt.
- I phoned the store AND went in and talked to a salesperson, who both confirmed I had 30 days to return the WARRANTY seperately - and I can keep the tv.

- So tomorrow when I go to pick up the tv, I'm loading it my car, then walking right back in to return the warranty!! /images/graemlins/grin.gif All in all, I get a $3500 tv for $3000.

- Why the hell would I pay $600 for a warranty (that only lasts an additional 2 yrs) on a $3000 item!?!?!? Simply put, the salesguy got greedy.


/images/graemlins/grin.gif /images/graemlins/grin.gif


Adam

You have a better chance of going runner runner royal flush then using that warranty.