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Service Plans?

Old 11-29-05, 04:32 PM
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Service Plans?

Okay I know everyone hates Service Plans..... and I agree I never buy them....

However.... for something like a 52" DLP TV for $2500 is a $400 4 year plan a good investment? or still a rip off?
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Old 11-29-05, 04:50 PM
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Some recent discussion:
http://www.dvdtalk.com/forum/showthread.php?t=445537
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Old 11-29-05, 04:58 PM
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Speaking as somebody who has worked on the "other side" of the fence, these service plans are a huge ripoff for the consumer. There's a reason that stores like Best Buy push them so hard...it's basically like printing money for them.

Are there times where I would have saved money buying a service plan? Absolutely. BUT, overall if I totaled up the cost of buying a service plan on everything vs. the cost of fixing/replacing everything, by far the service plan turns out to be more costly.

Save the $400 and take your significant other out on a kickass date.
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Old 11-29-05, 08:04 PM
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Originally Posted by jknuss01
Okay I know everyone hates Service Plans..... and I agree I never buy them....

However.... for something like a 52" DLP TV for $2500 is a $400 4 year plan a good investment? or still a rip off?
I would say that is expensive. I paid less than that for my Sharp 10K projector, 4 years including bulb replacement. I always buy them if they make sense financially.
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Old 11-30-05, 12:02 AM
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I never understand the pricing on these. I paid like 60 bucks for the service plan on my 26 inch Samsung LCD, which cost $1400. But I paid over $300 for the service plan on my Mits RPTV, which only cost $1900.

I bought them on my tvs for two reasons. One, I had a $2000 Sony XBR die on my just a few months out of warranty and didn't want a repeat of that episode. Two, I live in the city and don't have a car, so taking a TV to be repaired would be expensive and a huge pain. Since service plans have huge profit margins, stores will sometimes knock the price of the tv down if you buy the plan.

OT, but funny story. When I bought my first expensive piece of gear (a $1400 receiver) back in high school, I asked my dealer if I could buy an extended warranty (past the manufacturer's two years). He said to me "are you so confidant that, after listening to dozens of receivers and doing all this research, that you have bought a piece of crap, that you are willing to bet me $200 it's going to break?" Needless to say, I didn't buy the warranty, and the receiver is still going strong, over seven years later.
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Old 11-30-05, 10:35 AM
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Simple. They expect the LCD to have zero problems while the CRT needs occasional maintenance to keep up perfect functionality. Or at least that's the theory. I would say the CRT has more parts that might break and be fixable. Usually an LCD either works or completely dies.

I say they are absolutely pointless on receivers, amps, most TVs. On anything with a motor they MIGHT be useful. VCR, DVD, CD, etc. But these days they tend to charge as much for the plan as for a replacement. So they are often not worth it on anything.
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Old 11-30-05, 10:01 PM
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Originally Posted by Spiky
Simple. They expect the LCD to have zero problems while the CRT needs occasional maintenance to keep up perfect functionality. Or at least that's the theory. I would say the CRT has more parts that might break and be fixable. Usually an LCD either works or completely dies.
Makes sense. My CRT has had a red dot on the screen since I bought it, but I haven't had the time or the energy to get it addressed yet. I will probably try to take advantage of the extended warranty I bought in the next few weeks.
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Old 12-01-05, 04:30 AM
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I bought the 4 year service plan on my Mits for peace of mind. I haggled the deal that the cost of the plan and TV was the asking price of the TV alone and I wanted to be sure the service I would get covered in home service so they wouldn't be taking this large box back to the shop. The price of a replacement CRT alone is about $200 plus the labor so it made sense to me on a $2000+ purchase. I wouldn't buy it at $400 for a TV less then a $1000 though.
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Old 12-01-05, 04:46 PM
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Well I found out from Toshiba that the life of the buld should be 6000 - 8000 hours, so even with a buld replacement the $400 seems a bit high.
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Old 12-04-05, 07:21 PM
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If I watch 5 hours of TV a day, the bulb on my DLP will last a little over four years, so it wouldn't even be covered. I skipped it. $400 on a $1500 TV was too much (though the TV was on sale $700 off).
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