I bought a house which is 7 years old. It has natural gas furnace and
central air conditioning which I know nothing about maintain or
repairing them. The Union Energy company called me to offer me a
proctection plan ($15.99/month) which has some services for diagnosis
and repairing parts (of course there is limit for no extra charge). I
don't have any problem with my central air conditionning and my
furnace now. Should I apply this plan?
Any comments are appreciated.
hi , i was just in a similar situation except the furnace system i
bought is around 30 years old ... for 199 i got a tune-up and 1 year
service plan (also covers parts) , to me it was worth it because i
also do not know much about the system and i could not be sure of how
well maintained it has been ...
the way i looked at it was that if i had one service call all winter
then i would already have saved money (and 2 problems were already
discovered during the tune-up which would have cost me at least 400 to
repair so im ahead of the game right off the bat) and it also
eliminates the stress of trying to find a service person in a rush
when i have no heat , which is extremely hard in my area , you are
lucky if they return your call nevermind actually show up ... with the
plan i am guaranteed they will get someone here ...
just my opinion , i am new to these kinds of things also ... good luck
On 7 Oct 2004 06:21:28 -0700, email@example.com (Helen) wrote:
There is one thing that is always true. There is no such thing as a
They want to sell you the plan because they expect to make money on it.
They either expect it to cost less than that or like the free lunch, they
figure it will put you right where they want you when something not covered
comes up or in the case of the free lunch, you get hungry after eating that
I would pass on it. Find a trusted local contractor and stick with
them. I am lucky and I have a trusted local contractor. When dealing with
Union Energy, who knows who they will send out?
I bought a $25 cordless phone at Best Buy, they tried to sell me a extended
warranty for $12! The salesman barely got a chance to say the price before I
said NO! Realizing I may be missing a GREAT deal that I would be SORRY for
missing, I retracted and let him give his pitch. When he got done, I asked
him if he could honestly say that a $12 protection plan for a $25 phone was
a good deal for me? He wouldn't answer, if fact he did not say a thing and
just sold me the phone!
Keep in mind it covers only repairs, not any regular maintanance. You should
have the equipment serviced regularly too. Pay a private dealer to come out
once or twice a year to check over the equipment and you will be money a
In my case my furace and AC would have cost me two service calls for repair
in twelve years, probably less than $300 parts and labor total. The plan
they are offering you would cost me $2300 in the same time.
I would take my chances and pay for the repairs when they happen.
Absolutely... extended warranties are almost never a good deal for the
consumer for any product. Unless you can honestly say that you are likely to
need the protection, e.g. you get a warranty that covers any kind of
breakage for your laptop computer, which you routinely carry with you while
mountain biking, these things generally have a payback as little as 10-30%.
You will have FAR better luck taking the money to a casino and playing the
worst games, like slots, which have maybe 90% payback.
And definitely don't kick yourself if you happen to have a repair to your
furnace (or whatever) that might have been covered (even though there are so
many restrictions on these things that you're lucky if it would have
been...). Think about all the money you saved *across the board* because you
never bought a warranty for anything. And also remember that when you get a
repair under one of these warranties you are stuck with using the repair
service offered by the vendor, which could be of poor quality, timing or
It's pretty safe to assume that ANY service contract for ANY product is a
rip-off; whether offered at time of sale, or aftermarket. They are VERY
profitable items for folks to sell. Which means most of what you pay is
profit / commission and little goes to providing service.
My standard response to any salesperson who tries to sell me an extended
warranty is "If this product is so bad that it needs an extended warranty, I
don't want to buy it at all".
About the only exception I've ever made to this rule is for very complicated
electro-mechanical devices that are often subject to abuse. I got a
camcorder on end of year closeout at half price: thus the 3 year warranty
was also half price, $30 instead of $60. [Warranty based on purchase price,
not item purchased!] The original battery needs replacement after not quite
2 years, at which point I'm money ahead.
Bob Kaplow NAR # 18L TRA # "Impeach the TRA BoD"
>>> To reply, remove the TRABoD! <<<
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