Private Warranty Contracts

[Cap'n Preshoot]

I recently learned that TWEETER in some markets is now doing their own in-house service and has begun writing extended warranties on "their own paper", meaning that they (Tweeter) is the warranty company.

It surprises me that the in-house warranty from Tweeter is so far one of the most expensive I've found. Ordinarily an extended warranty offered by a third party warranty company represents a 50% profit item to the selling dealer with the remainder actually going to the warranty company as the actual wholesale cost. So what is Tweeter doing here? The $599 price for a 4 year warranty on a $3600 DLP would at first glance appear to be a 100% profit item, with the entire $599 going to Tweeter's. More than likely the sales staff has a major financial incentive to push these.

The Tweeter in-house warranty offers annual cleaning & adjustment, unlimited servce calls for in-home service, replace or repair, and a no-lemon guarantee (3 strikes with a 4th repair for the same problem needed) but notably does not include a DLP lamp replacement.

One problem with an in-house warranty from a private underwriter is you're betting the farm that they're still going to be around when you need them. Chances are they will, but what if you move? Tweeter stores are only in major markets and not all of them have their own in-house TV service. What do I do if I move to somewhere like Douglas, AZ?

[lcaillo]

I would not trust that Tweeter will be around to honor the contract. You want a stable company with lots more backing it than they probablility of Tweeter's longevity, which is suspect.