I have always maintained that extended warranties are not worthwhile because our Australian consumer laws override whatever the stated warranty is. So if you buy an expensive TV and it fails after a few years you are covered even if the warranty stated was only 12 months. The dearer the appliance, the greater the expectation that it should last.
Yet when I bought a TV from Good Guys this week I almost fell for the salesman's spiel. The TV came with 12 months warranty and an extended warranty to 5 years would have cost about 15-20% more.
"But" says the salesman, "this one is different. We actually give you more back in store cash than you pay for the warranty". So for a premium of $269 I would receive back $300 in store cash ... to spend on anything in store. And if the TV fails in that time, no need to fight to get it covered.
When I asked for more detail I discovered:
the $300 is paid in 15 x $20 instalments over the 5 years ... 3 per year.
each payment expires 10 days after being credited.
you have to use Google Wallet and remain subscribed to marketing SMS messages or the payments stop.
So to get the full benefit of this I would have to put up with their marketing spam for 5 years and then make 15 separate purchases in that time.
I just thought I would pass it on to read the detail. There is a reason the salesmen push to add these.
I have always maintained that extended warranties are not worthwhile because our Australian consumer laws override whatever the stated warranty is. So if you buy an expensive TV and it fails after a few years you are covered even if the warranty stated was only 12 months. The dearer the appliance, the greater the expectation that it should last.
Yet when I bought a TV from Good Guys this week I almost fell for the salesman's spiel. The TV came with 12 months warranty and an extended warranty to 5 years would have cost about 15-20% more.
"But" says the salesman, "this one is different. We actually give you more back in store cash than you pay for the warranty". So for a premium of $269 I would receive back $300 in store cash ... to spend on anything in store. And if the TV fails in that time, no need to fight to get it covered.
When I asked for more detail I discovered:
the $300 is paid in 15 x $20 instalments over the 5 years ... 3 per year.
each payment expires 10 days after being credited.
you have to use Google Wallet and remain subscribed to marketing SMS messages or the payments stop.
So to get the full benefit of this I would have to put up with their marketing spam for 5 years and then make 15 separate purchases in that time.
I just thought I would pass it on to read the detail. There is a reason the salesmen push to add these.
Yep they get a spiv (bonus) for selling the extended warranty
