"Harry Hamilton" wrote in message
...
What??? I bought a five year extended warranty when I bought my new Sony
LCD TV last year from Circuit City. Perhaps I got conned?

If you paid a price you were comfortable with to insure yourself against the
risk of a catastrophic failure in the 3 years that you got past what you
would have witht he factory warranty and whay you could get for free with
the right credit card, you did not get conned. If, on the other hand, you
were sod something different than you thought you were buying, were told
that the probablility was that you would need the warranty, or paid more
than you wanted to spend, they you may have been conned. The fact is that
it is only in rare circumstances that extended warranties are a smart
purchase. They are insurance against risk, and if you feel better about
having that then you should buy it. However, it should be understood that
the vast majority of extended warranties are never used for a number of
reasons, that many do not cover what the customer expects they comver, and
they are typically far more profitable for the dealer than the set that they
go with. There is a reason that they are profitable. The economics are
easy to figure out and are not much different than casinos and lotteries,
only more profitable than the former.

Smart consumers can make use of EWs sometimes and come out OK, but you have
to understand the product, the warranty, the market, and the risk very
clearly. For the vast majority, it is, indeed, largely a con.

Leonard




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