Get the Extended Warranty, Or Not?

Next time you are faced with the surprise decision whether to buy an extended warranty on your next computer or refrigerator or service contract for your new car, or not…

Stop and think. Because chances are you will lose money if you do.

According to Consumer Reports, retailers push hard to sell you extended warranties and service plans because they are “cash cows” for them.

Stores typically keep 50 percent or more of what they charge for warranties, much more than they make selling the actual products.

Here are 3 things to consider before you buy that extended warranty:

1. Some repairs are covered by the standard manufacturer warranty that comes with the product.

2. Products seldom break within the extended-warranty period.

3. When electronics and appliances do break, the repairs will cost not much more than an extended warranty, on average.

Now not all extended warranties are bad deals. Repair-prone brands may be a consideration. As well as Apple products that do not give you much support unless you buy the Apple Care.

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