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Replying To:
Cost of Extended Warrantees (none / 0) (#6)
by Anonymous User on Fri Nov 16, 2007 at 06:40:24 AM PDT

Do the math. Anyone offering an extended warrantee knows the probability of any one unit needing repair/replacement. The know the price of repair/replacement, which gives them the cost of the contingent liability. Factor in the salesman commission and the profit the warrantee company needs to make and you realize that you are paying far more than the cost of replacement. Cost of replacement plus commisssion plus profit = price you pay for exended warrantee. Then factor in the time delays mentioned in the article plus the "authorized" repair facility may be hundreds of miles away and you can see extended warrantees are never a good deal.


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