Bearer of Bad News Decides to Advertise It

[gristy]

Source: NY Times

Consumer Reports is getting feisty in its old age. After more than 70 years, the magazine has decided that a review isn’t enough for a bad product — it deserves a provocative ad campaign, too.

The ads warn against buying extended warranties on new cars, saying, “Pushover on board.” They will begin to appear Monday on car-buying Web sites like Caranddriver.com and Edmunds.com, and a full-page version is scheduled to appear Tuesday in USA Today.

The basic message is not new — Consumer Reports, published by the nonprofit group Consumers Union, has said for years that extended warranties on new cars and many other products cost more than they are worth.

Read more: http://www.nytimes.com/2008/03/17/business/media/17consumer.html?ref=business

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As a long-time reader of Consumer Reports (my Dad has been paying for my subscription for as long as I can remember), I find this interesting. I wonder if they will see a jump in subscriptions.

[Ian David]

1. I bought the extended warranty on my Consumer Reports subscrition. n/t

[Purveyor]

2. In 1994, I bought a 3rd party extended warranty for my new GMC Yukon for

about a third of what the dealership offered.

Being my first 4x4, I went for the offer. It cost me around $900 and saved me at least $6,000.

The rear-end went out twice, something happened with the main bearing in the engine and the air conditioner pump failed...all within the warranty coverage.

Still own the vehicle and haven't had a major problem after we got through all of THAT!

That was a long time ago and now new vehicles already have decent warranties. Not sure I would purchase a extended IF I was to buy a new vehicle today.

[high density]

3. I think the internet minimizes the value of Consumer Reports

People can get much larger amounts of information on the internet about anything they want to buy. Reviews from owners or media are all over the place for just about everything. I was looking through their car issue and everything was so summarized and brief that it seemed almost useless. I guess it would be a good start point for people without computers, to learn what vehicles are currently on the market.

I will agree with them on auto warranties, though. People would be better off putting $xx/mo into a savings account for future automobile expenses if they are that concerned about it. I was offered one when I bought my car and I think the most expensive option added something like $6,000 over the cost of the loan.

[Frances]

5. One problem with internet reviews is that you don't know

who wrote the reviews. It could be that the manufacturer writes some of the reviews. There is no way to tell.

Also, when I read reviews online, they often run the gamut of opinions. I can't tell how objective the reviewers are.

I guess you've had good luck, though.

[raebrek]

11. I'll go you one better on internet reviews.

I was doing some research on a product awhile back. I don't recall what it was. I found one very interesting review. I found the identical review on at least 6 different websites. I don't know that I trust internet reviews that much.

Raebrek!!!

[DissentIsPatriotic]

4. My credit wasn't good when I bought my car...

and one of the conditions the bank placed on the loan was that I take out an extended warranty. I'm pretty sure I got rooked, but I needed the loan, and I needed the car.

[IronLionZion]

6. I'm a strong supporter for extended warranties on laptop computers

those things break often simply because you carry them around. And they are quite expensive to fix.

[raebrek]

12. I used to support the long extended warranty's on laptops.

It used to cost 700.00 to replace either the screen or the motherboard plus labor. So the warranty seemed like a good idea to me. I purchased my wife a great portable last Christmas and I did not get the extended warranty because the laptop cost 600.00. If it fails in a year or two it would be just as easily replaced to me. But then that is just me.

Raebrek!!!

[TXDemGal]

7. The only products hubby & I have bought extended warranties for

are laptops and our new (less than 1 yr.) side-by-side with water dispenser in door refrigerator. Everything else, forget it. Not surprisingly, we've already had to get the refrigerator's ice/water dispenser serviced, so I think that warranty already paid for itself. All our laptops have had to be serviced, as well.

[Liberty Belle]

8. Extended warranties have paid off for me, big-time.

I got a brand new washing machine, dishwasher, printer and FAX machine -- All because I'd bought an extended warranty. In each case, the new item failed very shortly after the original warranty ran out. The washing machine was over $1,000 and the main computer board failed, third major repair it needed in 13 months. My rule of thumb is I buy an extended warranty on anything with a computer in it, or anything that I tend to be hard on (which includes all office equipment, which I use heavily).

[LibertyLover]

9. We rarely buy the extended warranty, but when we bought our HDTV

we decided to go ahead and get one. We are glad we did - just a little over a year after we got it, when the manufacturer's warrenty would have been expired, a small but vital part died. Had we had to pay to have it fixed, it would have been expensive - but because we had the extended warranty, we didn't have to pay either for the part or the technician's time. The warranty's cost paid for itself with just that one problem.

[kittycat1164]

10. I confess, I bought extended on one thing....

my 15 YOs IPOD....She's so rough on them. I've already replaced it once since she broke the screen...so it was well worth the 25.00 or 30.00 for 4 years replacement.