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GE Warranty By Any Other Name Still Smells | 17 comments (17 topical) | Post A Comment
Extended warranties almost always stink...[ Reply to This ] (none / 0) (#6)
by Paul Sherman on Mon Apr 16, 2007 at 10:28:18 AM PDT

None of the story surprises me, I've dealt with extended warranties and service contracts (they're identical for all practical purposes) for almost 30 years. And that included trying to sell them. The only party they're effective for is the seller. A hint, they won't sell a service contract if there's not at least 30% pure profit in it. Currently I work in a healthcare system dealing with medical equipment. If ever there was a segment where extended warranties might work, this would be it. And guess what - they don't work there either. Even if the work isn't done in-house, it's cheaper (and just as fast) to call in as needed. And for cost comparison - the average contract for medical equipment runs ~ 8%/year. Consumer contracts often run double that. For me, it's pretty hilarious to hear some poor floor salesman at a store try to convince me that the extended warranty is a good idea. (Especially since I've been dealing with those contracts longer than he's been alive).

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yes[ Parent | Reply to This ] (none / 0) (#14)
by maderikapapa on Sat Jun 28, 2008 at 01:08:07 AM PDT

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GE Warranty By Any Other Name Still Smells | 17 comments (17 topical) | Post A Comment
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