[quote name='Allnatural']One tv. How much did the tv cost? How much have you spent on service contracts over the years? Maybe the math works this one time, but on the whole service contracts are a big loser for the consumer.
I've saved thousands by not buying service contracts (I'm including cars), and other than my 360 (natch) I've never had anything fail outright within the first few years of ownership. Beyond that, I'm usually ready for an upgrade anyway. If some gadget had failed...well, I have the money to replace that statistical outlier.[/QUOTE]The TV was around $2300, and I spent $350 on the service contract for three years. It was used up with the repair, and I received $1750 back on the "comparable replacement value" of the TV they would have replaced it with. Plus, I retained the TV and I'm selling it to a friend for a cheap price, since they didn't want the old TV back, and the issue is one that fades over time and isn't noticeable. So, I'm covering most of the cost of the initial TV purchase with the money spent on the extended warranty.
Had the repair been one that wasn't $5K for the repair if they did it, I'd still have it under warranty.
It's a simple matter to figure out if the initial cost of the warranty on the off-chance it'll break in the timeframe of the warranty is worth spending versus dealing with the repair/replacement in the same timeframe.
[quote name='salty tbone']Fair enough. I'm glad it worked out for you, and if buying a service plan is worth it for people's piece of mind then go for it. But as far as a strictly financial move, service plans are not a good buy. Why else do you think retailers push so hard to sell them? Because they're looking out for you?
No. Because they make a ton of money on them.[/QUOTE]It was making a small money expense against the possibility of future repairs at my cost. With the increase of technology they're putting in a large TV these days, it's almost crazy not to buy one on the off chance it fails outside the warranty period.