5 ms·
> That's the way warranties work Not at this price. Usually the warranty is a percentage of the price of the goods. So for example, I expect a $1000 gadget to
by smnrchrds 6y ago
> That's the way warranties work
Not at this price. Usually the warranty is a percentage of the price of the goods. So for example, I expect a $1000 gadget to have extended warranty priced at $100 or so. I have never seen the warranty of a $1000 gadget to be priced at $3000 to $5000 dollars. And that is for stuff that break down more frequently, e.g. phones and laptops and cars. The odds of a furnace breaking down are even lower.
- owenmarshall 6y agoI think the “party line” response to this would be that the warranties you get include preventative maintenance as well, making it a different proposition - you’re not just buying a warranty, but a full service plan after all. But I’ve never been convinced by that argument. I just went through buying a furnace and had a few prospective installers. The first tried to sell the extended coverage: twice annual “checks and maintenance” and a 30% discount on all parts. The second said he’d let me source the parts myself if I so desired and if I would be responsible for changing the air filter on schedule and hosing down the outside fan every summer I’d be better off putting the annual fee into a sinking fund. Or, I could pay him $200 a year to hold a hose, money he’d happily take. He got the job. ;-)