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- Path: sparky!uunet!cs.utexas.edu!rutgers!igor.rutgers.edu!cadenza.rutgers.edu!masticol
- From: masticol@cadenza.rutgers.edu (Steve Masticola)
- Newsgroups: misc.consumers
- Subject: Re: SEARS extended warrantys
- Message-ID: <Jul.31.09.13.35.1992.1929@cadenza.rutgers.edu>
- Date: 31 Jul 92 13:13:36 GMT
- References: <sasbge.712557722@ant>
- Organization: Rutgers Univ., New Brunswick, N.J.
- Lines: 33
-
- Extended warranties are usually a waste of money. However, you can
- determine for yourself if it's worthwhile.
-
- If
-
- expected number of breakdowns over life of warranty
-
- times
- expected cost to repair
-
- is greater than
-
- price of warranty
-
- then the warranty is worth it. I know those numbers are hard to come
- by - but consider that the people who offered the warranty probably do
- have them, and price accordingly (to allow themselves some profit).
-
- Freezers are pretty trouble-free; two breakdowns over three years and
- it's a dog. Say it costs $200 to fix a breakdown. At that rate, the
- warranty is only worth it if you expect more than 0.685 breakdowns
- over the first three years.
-
- Also consider that the frequency-of-repair curve is bathtub-shaped; a
- peak early (infant mortality) and a peak late (old age), with low
- F.O.R. for most of its life. The unit has been run (some) at the
- factory; if it's been burned in, the manufacturer has eliminated much
- of the risk of infant mortality. And that's usually covered by the
- manufacturer's regular warranty.
-
- I'd say forget the extended warranty.
-
- - Steve (masticol@cs.rutgers.edu).
-