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Posting-Version: version B 2.10.2 9/18/84; site lsuc.UUCP
Path: utzoo!lsuc!dave
From: dave@lsuc.UUCP (David Sherman)
Newsgroups: net.consumers
Subject: Re: Are service contracts worth getting?
Message-ID: <650@lsuc.UUCP>
Date: Thu, 16-May-85 22:05:42 EDT
Article-I.D.: lsuc.650
Posted: Thu May 16 22:05:42 1985
Date-Received: Thu, 16-May-85 23:03:33 EDT
References: <1406@mtx5b.UUCP> <1539@hao.UUCP>
Reply-To: dave@lsuc.UUCP (David Sherman)
Organization: Law Society of Upper Canada, Toronto
Lines: 39
Summary: additional factors to consider

In article <1539@hao.UUCP> woods@hao.UUCP (Greg Woods) writes:
||
||  My policy on these things is: unless the consequences of disaster are more
||than I can afford to replace myself (like a fire in my home), I do not go
||for insurance or service contracts. Since I could (in the worst case) afford
||a $200 or so repair bill for my washer, I wouldn't pay for a service contract,
||preferring instead to play the odds (which are against a service contract
||paying off. If they weren't, the dealers couldn't afford to sell them).

We can afford the cost of service, yet we have extended service
contracts on all our appliances. Why? There are two factors which
Greg's arithmetic doesn't take into account:
	(a) you'll get repairs you otherwise wouldn't, and
	(b) you can be less careful about how you treat the appliance

For an example of (a), consider our oven. I did something rather
dumb* which set the inside of the oven on fire. After cleaning it
out and putting it on self-clean, the inside of the oven remained
totally streaked with black. If it had been our own nickel, we'd have
left it that way; since it was on extended warranty, we called in
CGE** and they replaced the inside of the oven(!). That's just one example;
with a service contract, you're much less hesitant about calling for
service when anything at all is wrong, and consequently your appliances
will be in better shape.

As for (b), we certainly don't go deliberately damaging the appliances,
but we also don't worry about whether we're doing everything right
to take care of them. We know that if anything goes wrong, CGE will
come in and fix it. Is this irresponsible? I don't think so. It's
factored in to the price of the service contract ($140/year for 5
appliances).

Dave Sherman
-----------------
*Dumb enough that I won't post the details. If you're interested,
ask via mail.
**Canadian General Electric
-- 
{  ihnp4!utzoo  pesnta  utcs  hcr  decvax!utcsri  }  !lsuc!dave