Post by Skaggs on Feb 23, 2005 13:08:50 GMT -5
DOLLARS & SENSE
THE INSIDE SCOOP ON FINANCING, WARRANTIES, AND INSTALLATION
BEWARE LOAN GOTCHAS
In an effort to drive sales of higher-priced TVs and other electronics, some retailers now offer zero-interest loans for up to two years. Be sure you keep up with payments. Most retailers make you sign up for a credit card that carries a high annual interest rate—up to 29 percent.
If you don’t repay the loan in full before the term expires, you could be socked with interest from the date of purchase. With some loans, missing three payments in a row triggers the same hefty penalty.
So even if you’ve paid $7,000 toward the price of an $8,000 plasma TV, you could be charged interest on the original $8,000 over the full loan period. On a two-year loan with a 24 percent rate, that would tack thousands more onto what was a $1,000 balance.
Study the fine print before signing up for any financing, and think hard about the costly downside to such loans,
WEIGH WARRANTY COSTS
For most products, extended warranties aren’t worth if. Appliances and electronic gear such as conventional TVs, camcorders, and digital cameras aren’t likely to break down during the warranty period. And even if they do, the typical repair costs roughly the same as a service plan.
But an extended warranty might be worthwhile for high- priced plasma and LCD TVs and rear-projection sets using LCD, DLP, or LCoS. Those TVs are too new to have a track record for reliability, yet most have the same one-year standard warranty as more-proven products. Extended warranties typically cover parts and labor for two to five years from the date of purchase—or one to four years beyond the standard one-year warranty. Costs vary by the type of TV, its price, and the length of the warranty. At Best Buy, a four-year service plan on LCD TVs 13 inches and larger costs $200 to $400, depending on size. For a plasma TV, a four- year plan costs $400 to $600, depending on the TV’s price. We’ve seen other service plans that cost as much as $1,000.
Find out exactly what is covered by any plan. Typically, TVs with screens smaller than 25 or 27 inches have to be carried in or shipped to a store or repair center, while larger sets are serviced in-home. If a set can’t be repaired, make sure that a plan will provide a replacement.
HAVE A PRO INSTALL IT
If you’re daunted by the idea of moving a huge TV and connecting it to all your gear, pay a pro to do the job for you. Large retailers like Best Buy, Circuit City, and Sears offer several levels of in-home installation. Prices start at $100 to hook up a cable box and a VCR or a DVD player; they can top $1,000 to wall-mount a plasma or LCD TV, connect numerous audio/video components, and hide wiring behind walls or under floors. (Add $200 to $500 for mounting brackets.)
THE INSIDE SCOOP ON FINANCING, WARRANTIES, AND INSTALLATION
BEWARE LOAN GOTCHAS
In an effort to drive sales of higher-priced TVs and other electronics, some retailers now offer zero-interest loans for up to two years. Be sure you keep up with payments. Most retailers make you sign up for a credit card that carries a high annual interest rate—up to 29 percent.
If you don’t repay the loan in full before the term expires, you could be socked with interest from the date of purchase. With some loans, missing three payments in a row triggers the same hefty penalty.
So even if you’ve paid $7,000 toward the price of an $8,000 plasma TV, you could be charged interest on the original $8,000 over the full loan period. On a two-year loan with a 24 percent rate, that would tack thousands more onto what was a $1,000 balance.
Study the fine print before signing up for any financing, and think hard about the costly downside to such loans,
WEIGH WARRANTY COSTS
For most products, extended warranties aren’t worth if. Appliances and electronic gear such as conventional TVs, camcorders, and digital cameras aren’t likely to break down during the warranty period. And even if they do, the typical repair costs roughly the same as a service plan.
But an extended warranty might be worthwhile for high- priced plasma and LCD TVs and rear-projection sets using LCD, DLP, or LCoS. Those TVs are too new to have a track record for reliability, yet most have the same one-year standard warranty as more-proven products. Extended warranties typically cover parts and labor for two to five years from the date of purchase—or one to four years beyond the standard one-year warranty. Costs vary by the type of TV, its price, and the length of the warranty. At Best Buy, a four-year service plan on LCD TVs 13 inches and larger costs $200 to $400, depending on size. For a plasma TV, a four- year plan costs $400 to $600, depending on the TV’s price. We’ve seen other service plans that cost as much as $1,000.
Find out exactly what is covered by any plan. Typically, TVs with screens smaller than 25 or 27 inches have to be carried in or shipped to a store or repair center, while larger sets are serviced in-home. If a set can’t be repaired, make sure that a plan will provide a replacement.
HAVE A PRO INSTALL IT
If you’re daunted by the idea of moving a huge TV and connecting it to all your gear, pay a pro to do the job for you. Large retailers like Best Buy, Circuit City, and Sears offer several levels of in-home installation. Prices start at $100 to hook up a cable box and a VCR or a DVD player; they can top $1,000 to wall-mount a plasma or LCD TV, connect numerous audio/video components, and hide wiring behind walls or under floors. (Add $200 to $500 for mounting brackets.)