Extended Warranties – Worth the Money?
Extended warranties-are they worth the cost? Like most insurance policies, extended warranties are a guard against risk: the risk of premature failure/breakdown of the product being warranted. They are frequently offered on new and used cars, appliances, electronics, and other household goods.
Extended warranties are a common source of profits for the makers of these products. There are also a number of third parties who offer extended warranties, especially on vehicles that are reaching the end of the original manufacturer’s warranty.
Consumer Reports did a study of extended warranties several years ago, concluding, in general, that extended warranties were not a good buy-the amount of money saved, on average, was not worth the cost.
However the extended warranty, for many people, is not just about money, it is a source of comfort or peace of mind.
The extended warranty products offered frequently have a better profit margin built in, than the profit from selling the product in the first place.
These days most auto profit margins are extremely thin, so extended warranties are pushed to give dealers a little more profit per vehicle.
The majority of buyers of new cars, so far in 2009, have actually purchased extended warranties suggesting consumer unease about their own abilities to finance repairs in the next few years.
Many extended warranties on consumer electronics cost anywhere from 20-70% of the original cost. Many consumer experts do recommend purchasing warranties on products whose use may be above average or known to have a more unreliable lifespan.
In summary extended warranties are not recommended unless you:
- Will sleep better at night.
- High use item that might require more frequent replacement/repair.
- Need confidence of a quick replacement and have no reserve savings.
If you do purchase an extended warranty, make sure you read all the fine print, including information such as deductibles and exclusions that may make the warranty worthless to you.
About the Author
Dr. Dean is an established and successful OBGYN, and professional author. He can be reached at Info@TheMillionaireNurse.com or 229.220.0339 http://www.themillionairenurse.com
Extended Warranty: Buy or Don’t Buy? – Tekzilla Clips
|
|
Cuisinart Elite Collection Food Processor $500.00 All-inclusive food processor from Cuisinart surpasses all other brands with the speed, multiple-performance and precision that has made Cuisinart the internationally-acclaimed brand of choice for gourmet chefs. Powerful 1,000 watt motor starts with touchpad control operation. Pulses or kneads dough with a simple press of a button. Two interchangeable discs, plus two interchangeable blades, let you… |
|
|
Cuisinart CWT-240 19-by-12-Inch Warming Tray $62.00 Keep foods at the perfect serving temperature with the Cuisinart Warming Tray%2E Big enough to hold several dishes at once%2C it features elegant styling that enhances the appearance of any table or buffet%2E The glass surface and brushed metal housing are easy to clean and three different heat settings maintain the optimum serving temperature for a wide variety of dishes%2E… |
|
|
Zojirushi NS-ZCC18 10-Cup (Uncooked) Neuro Fuzzy Rice Cooker and Warmer, Premium White $165.99 With advancedNeuro Fuzzy logic technology and a spherical pan and heating system, rice is perfectly prepared every time. Other features include extra large LCD display, timer, nonstick inner cooking pan; reheating cycle, extended keep warm, quick cook cycle and multiple menu settings including rinse-free rice setting. Features: – Advanced neuro fuzzy® logic technology – multi-menu settings–brown… |
|
|
SquareTrade RD-CE0799R1B Extended Warranty Finally, A No Hassle Warranty That Comes With All The Bells And Whistles And No Hidden Gotchas!Every Squaretrade Warranty Comes Fully Equipped With A 5-day Service Guarantee, 24/7 Online Access To Your Warranty Contract And Protection From All Mechanical And Electrical Failures.The Choice Is Simple, But Squaretrade Lets You Make That Decisionnote: Squaretrade Warranties Are Currently Only Valid In… |
|
|
Belkin BE112230-08 12-Outlet Home/Office Surge Protector with Telephone and Coaxial Protection $16.00 SAFETY COVERS FOR OUTLETSSLIM DESIGN FOR COMPACT STORAGEORGANIZES CABLES WITH DETACHABLE CORD MANAGEMENT CLIPFLAT-PROFILE PLUG12 OUTLETSTELEPHONE & COAXIAL PROTECTION3780 JOULES8-FT POWER CORDLIFETIME WARRANTY$300000 CONNECTED EQUIPMENT WARRANTYUPC : 722868594322Shipping Dimensions : 14.75in X 6.00in X 2.00inEstimated Shipping Weight : 2.15… |
|
|
Fiskars 9240 Telescoping Pruning Stik $75.99 Spare yourself the effort of climbing trees to reach far-off branches with this convenient and powerful telescoping pruning tool from Fiskars. The Pruning Stik’s fiberglass outer pole and aluminum inner pole extend to a full 13 feet, allowing you to trim upper branches from the safety and security of the ground. Its extremely sharp cutting blade can be manipulated by pulling a rope or the pole’s e… |
|
|
Zoeller 98-0001 115-Volt 1/2 Horse Power Model M98 Flow-Mate Automatic Cast Iron Single Phase Submersible Sump/Effluent Pump $189.99 FLOW-MATE” SUBMERSIBLE PUMP 1/2 HP For sump/dewatering septic tank effluent Thermal overload protected Cast iron Stainless steel screws 2-pole float operated mechanical switch 1-1/2″ NPT discharge Passes 1/2″ solids 115 volt 3420 GPH at 5, 3060 GPH at 10, 2580 GPH at 15 head One year limited warranty Display carton… |
|
|
John Pinette: Still Hungry $3.99 … |
|
|
Conair Infiniti Pro AC Motor Styling Tool $49.99 Powerful ionic technology hair dyer. Quiet, powerful AC motor. 1875 watts, 3 speed/2 speed switch. Ceramic and ionic technology for healthier hair. 2 concentrator attachments and removable filter included. Manufacturer’s warranty included…. |
|
|
Jerdon Classic JGL9W Lighted Tri-fold Mirror, 5x Magnification $34.99 The Jerdon Deluxe Lighted Makeup Mirror features two adjustable side mirrors…. |
|
|
Canon EF 70-300mm f/4-5.6 IS USM Telephoto Zoom Lens/ Accessory Kit/ 5 Year Extended Warranty $565.99 The EF 70-300mm f/4-5.6 IS USM telephoto zoom lens has been developed to meet the high-performance standards that today’s photographers demand. Improved Image Stabilizer Technology provides up to three stops of ‘shake’ correction. |