In 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
Tag Archives: value
Warranties are withering, claims an Arizona State marketing professor. This, he says, bodes well for service contract industry profits, but not for consumers.
But in many product sectors warranty is expanding and recent studies show that consumers believe that service contracts deliver value. Continue reading
Presumably without intending to do so, a recent Consumer Reports article, reporting the results of a recently conducted consumer survey, makes a pretty strong case for buying a “bumper-to-bumper” extended car warranty depending on which make you buy and how long you intend to keep it. Continue reading