Greedy? No. Mad as hell? You betcha!
In other words, there was no balance. While many consumers have excellent experiences when it comes to extended service plans and receiving parts and labor far beyond the cost of the actual warranty (and sometimes primary product), those examples were mysteriously absent from the report.
“We think their painting of warranties as being nothing good but for greedy retailers is bogus,” Drake says. “Warranties are profitable [for dealers]; we’re not disputing that. But they’re equally beneficial to consumers.”
What the magazine didn’t talk about was the number of failures that occur and the billions of dollars that are reimbursed to consumers, money they don’t have to spend to repair or replace the products. Consumer Reports mentioned consumers who felt they’d wasted money on extended service plans, but there was no mention of the countless cases where customers didn’t purchase a warranty and wish they had.