Tag Archives: fine print

Groundhog Day: Another piece questioning the value of extended warranties

Celtic-knot-basic-linear

The same article keeps popping up every other week or so in one publication or another. Its headline either asks if extended warranties are worth the cost or screams they are not. It gives the same advice – “buy smart” – and generally reaches the same conclusion on whether you should buy a service contract – “It depends”. See here, then here, here, herehere, and here.  Why is somebody always picking on extended warranties?

Here are 5 reasons why I think extended warranties make an easy target. Continue reading

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Filed under Customer Experience, PR & Branding, Service Contract, Warranty

Consumer Reports to consumers: Choose risk or over peace of mind

boxing clip artIn a September 6 piece, Why you should avoid home warranties, Consumer Reports again takes a shot at service contracts. Noting a recent complaint filed by New Jersey regulators against Choice Home Warranty for allegedly making it difficult to obtain benefits, CR “recommend[s] avoiding service contracts” because those “that cover homes and cars, for example, can cost hundreds of dollars.” But what if the car or home costs many thousands of dollars? Isn’t spending a few hundred bucks on a service contract worth it to minimize risk and secure peace of mind? “No,” says CR, “it makes much more sense to buy reliable products and maintain them as the manufacturer recommends.” Now it’s clear, just buy things that won’t malfunction or fail. Continue reading

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Filed under Customer Experience, Resolving Disputes, Risk Management, Service Contract, Warranty