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Consumer Reports Extended Car Warranty

The correct way to think about an extended warranty is: What’s my probability of a total loss? Multiply that by the total cost.

Removing those parts will violate your extended warranty and—” “Die!

Contrast is often used to influence buying decisions. In the business world, Contrast is often used as pricing camouflage. In the case of the $60 shirt, it may be possible to buy the exact same shirt at another retailer for $40, but the less expensive shirt isn’t present in the store where the comparison is taking place. What is present is the $400 suit, which makes the $60 shirt look like a bargain. Compared with a $2,000 computer, a $300 extended warranty appears inexpensive, even though it increases the total purchase price by 15 percent. Compared with a $30,000 vehicle, spending $1,000 for leather seats feels like a bargain. Compared with buying a $400,000 house, spending $20,000 to remodel the kitchen feels like no big deal.

Another example might be deciding whether or not to buy an extended warranty. If you just had a bad experience with an electronic device, you might be willing to pay a high premium for an extended warranty. However, statistically, the odds that you’ll need one again could be very low; perhaps you’ve never needed a warranty before in your entire buying history. The risk

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The company noticed that its customers spent a lot of money to maintain their GE equipment, but because GE didn’t offer maintenance services, the customers weren’t spending additional money with GE after purchasing the equipment. To tap into this part of the market, GE began to bundle maintenance contracts, extended warranties, and other repair-type services across all its major product lines. This new offering was wildly successful, bringing in billions of dollars in new revenue, and it all happened because someone at GE was smart enough to figure out what services customers used to complement GE products.

So I don’t understand why the computer guys let others sell the follow-up memory, why the car guys let others sell the insurance and the extended warranty, and so on.” “I

YOU Tip: Rock Your Guac. Food fact of the day: The avocado is known as the testicle plant—not just because it’s shaped like the lovely sperm holders, but because it grows in pairs, and one side hangs lower than the other (really, we’re not kidding about the plant). The other reason why it could be named after the sacred scrotum: The healthy fat in avocado has also been shown to decrease BPH. Saw palmetto has the same fat as avocados and should decrease prostate growth as well. The major benefit: smaller prostate size, less BPH, fewer nighttime awakenings for urinating.

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So, what did you want to talk about?” I ask. “Your car’s extended warranty.” I bury my face in her neck, unable to not laugh. “Brat.” “Beautiful,” she calls me, instead. “Trouble,” I counter. “My pearl.

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If this is about my car’s extended warranty, I’m hanging up.

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