Extended Warranties

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I have just got a quote for an extended warranty on a Panasonic Plasma TH42PX70 costing approx £1100. During the first year (manufacturer's guarantee) they cover you for the full price of a replacement tv, but from then on it is on a sliding scale.

year of protection % age of current retail price 1st = 50% (2nd year) 2nd = 40% (3rd year) 3rd or more = 30% (4th year)

The cost is about £289 per year so during the 4th year I would receive approx £330 towards a new tv having paid out £1100 initialy and £1156 in premiums a total of £2256! or an annual cost of £564.

With prices going down every year and performance going up, I could buy a new Plasma after 4 years, stay up with technology and it would cost only about £2200. An annual cost of £550 (or £314 over seven years), and remember I have a new tv at the end of the 4th year to start the process off again and accidental damage or theft is covered on my household insurance.

I am sure someone will find an error in my maths but I can't see it.

 

[Andrew Everard]

Or you could find a retailer offering a free five-year warranty and simply sling a hundred quid or so into a savings account each year to buy a new set later should you want to. Should be more than enough the way prices are falling.

Sounds a much cheaper way of doing it to me...

 

[D.J.KRIME]

I dont know who has quoted you this price for the warranty but they are taking the wee-wee mate. Under rules set out by the FSA a warrantry has to offer value for money for the level of cover provided, now what you will find here is that the warrantry is only about £200 if that and the rest is going directly to the retailer in commision. I buy and sell cars for a living and the extended warrantrys work in exactly the same way, if a 2 year warrantry for say a 4 year olf Fiesta costs the seller say £250 the seller can add as much as they want to that price and charge the customer. The only point they risk getting in any trouble is if ever the customer complains to the FSA.

All extended warrantrys are provided by insurance companys, who will always try and find a way out of paying out on a claim if they can, that is the nature of their business hence why they have loss adjustors, but with these high prices for the extended warrantrys it is not them to blame but the retailer.More often than not the actual profit that the retailer has in the TV is quite small due to being competitive on price etc so they try and make up for this buy selling extended warrantrys as all companys need to make a profit. This is why say Panasonic are offering a "FREE" extended warrantry on their tv's but the tv will be at full RRP so the profit is in the tv not the warrantry.

 

[Anonymous]

[quote user="D.J.KRIME"]I dont know who has quoted you this price for the warranty but they are taking the wee-wee mate. [/quote]

I got the quote from the website of the company most retailers seem to use but I didn't give a name as I wasn't sure if it was allowed on this forum.

 

[Anonymous]

[quote user="Andrew Everard"]
Or you could find a retailer offering a free five-year warranty and simply sling a hundred quid or so into a savings account each year to buy a new set later should you want to. Should be more than enough the way prices are falling.

Sounds a much cheaper way of doing it to me...

[/quote]

That makes sense to me Andrew.

 

[Anonymous]

I was quoted £860.00 including a 5 year warranty via Domestic & General for a TH42PX70, by my local Panasonic shop....so we are you paying £1,100?

If you do want an extended warranty the best way to get one, instead of paying up front for it along with the TV in one hit is go on line to the Domestic & General website ( 99.9% of retailers who sell their electrical products do so with warranties by D & G) enter your Product details and you will get an instant online warranty quote with options to take out one from 1 to 5 years. But you don't need to apply for an extended warranty with D & G until your TV is around 11 months old ( i.e just before the manufacturers warranty expires).

Then you can apply for say a 2 year warranty and every year D & G will send you an automatic renewal for another year and so until your TV is 8 years old.My suggestion is to pay for the 2 year warranty by credit card so when the renewal notice is sent at the end of the two year warranty expiry date you can renew online using the your agreement number. If you opt to pay by Direct Debit and do nothing when you receive your renewal notice , D & G will continue to DD you for another year and so on.

However, whether or not you take out a warranty at all will really depend on the maths at the end of the day and things such as depreciation over the warranty period.

I have bought an £800 TV in Samsung PS42Q97HDX, so I may be tempted just to take out say a 2 year warranty online with D & G call it a day

However if you are going to spend around £1,700 for the 'Toffs' Pioneer you may also wish to take out a 2 year warranty initially with the option of extending that year after year when time comes until your TV is 8 years old.

 

[Anonymous]

[quote user="Tallyho"]
I was quoted £860.00 including a 5 year warranty via Domestic & General for a TH42PX70, by my local Panasonic shop....so we are you paying £1,100?

If you do want an extended warranty the best way to get one, instead of paying up front for it along with the TV in one hit is go on line to the Domestic & General website ( 99.9% of retailers who sell their electrical products do so with warranties by D & G) enter your Product details and you will get an instant online warranty quote with options to take out one from 1 to 5 years. But you don't need to apply for an extended warranty with D & G until your TV is around 11 months old ( i.e just before the manufacturers warranty expires).

[/quote]I was including the cost of a cabinet stand at about £300, hence the £1100. My figures were from a quote I got on the D & G site which is why I queried the sense of doing it.

I appreciate your input and am looking at a similar deal to the one you describe with a free five year warranty.