Let me tell you a story:
In 2005, I bought both a $329 Mini-DV camcorder and its $79 service plan. After almost four years of travel video and homemade porn, the camera was still it pretty good condition, which I considered a disappointment. I wanted there to be a problem with the camera, for reasons that will soon be clear. Finally, though, my wishes were answered when it fell off a table while the cord was plugged in. The contacts became loose and now the camera would only charge if the cable was held in a certain position.
So, three years and 361 days after buying the camera--four days before the deadline--I went to my local Best Buy. According to the policy, Best Buy will replace your damaged item with a new one (even if you caused the damage!). Since four years is a cosmic epoch for electronics, they didn't have the same camera in stock, which was exactly what I wanted.
Since they couldn't replace it with an new one, the plan dictated that they give me a store credit for the original purchase price. In 2005, $329 could get you a one-chip SD camera that took expensive Mini-DV tapes. In 2009, $329 would get you a remarkably small HD camcorder with flash storage.
The price of this brand new camera to me in real terms? The $79 I paid for the plan four years ago.
I essentially leased it for that price and then was given an upgrade.
When I got the HD camcorder I also got the 4 year service plan to go with it. Who knows? Four years from now, $329 might by me a contact lens with a camera installed on it. Either way, I've already paid for it, and will go get it as soon as I'm tired of my current camcorder.
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