Extended Warranties in a Nutshell
You’re at the store, about to check out, when the cashier suddenly asks you if you want to add the extended warranty. You’re about to drop $800 on a new flatscreen TV and you have only a few seconds to decide if you want to dish out an extra $100 for an extended warranty. What do you do? If you’re like many Americans, you probably agree to the extra $100 in exchange for peace of mind.
An Extended Warranty Isn’t Worth the Money
Most people who purchase appliances or electronics are encouraged by store salespeople to buy the extended warranty. Why is that? Why are we encouraged to purchase extended warranties? Because extended warranties are an easy way for retailers to make an extra buck off of you.
Here’s the deal, an extended warranty is really just a form of insurance. It gives you peace of mind that on the off chance something does break, you’ll be covered. But the fact of the matter is, products today are made better than they have before.
Products Rarely Break Within the Warranty Window
If a product is defective and is going to break, it will likely break within the first few months that you purchase it. It is extremely rare for a product to break 2-3 years after you have purchased it.
Repairs Aren’t Very Expensive
According to a recent Consumer Reports study, if your product does break, repairs often don’t cost very much. In fact, according to Consumer Reports, repairs cost on average $16 more than the cost of the extended warranty.
Manufacturers May Be Willing to Work With You
In today’s day and age social media has a lot of power. Consumers have more power now than ever to voice their opinion and have it heard. Rather than face the wrath of a social media nightmare, many manufacturers are willing to work with consumers to resolve issues.
Feel Confident Without an Extended Warranty
Before you make a major appliance or electronic purchase, do your research. Make sure you know the pros and cons of the product you are going to buy. If you have done enough research, you should be confident in your buying decision. Ask your friends, family, and neighbors for recommendations then hit the internet. If you buy a quality product, you shouldn’t worry about it breaking.
If you’re looking for other ways to save money, check out my post on why I never pay full price at Gap. And, check out the Honey Google Chrome extension to make sure you’re getting the best deal online.