Friday, July 3, 2009

Should you Buy Extended Warranties

I have heard from different sources the cons of buying extended warranties on automobiles, electronics, etc. Most of the time you pay more for the warranty than you will get out of it. Some salespeople will try to talk you into it by saying it is insurance against things going wrong with the car. But they price them higher than the average cost of repairs to make a profit on it.

I have had the extended coverage on a couple of my cars. In one case the one thing that went wrong wasn't covered by the warranty and the other one what it cost for the repairs was about the same as the price I paid for the warranty.

Stores offer extended warranties on most types of electronics. About a month ago, I bought a battery for a spotlight flashlight and they asked if I wanted the warranty for it. In a lot of cases, with electronics, it pays more to fix it than to buy a new one.

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