Extended Warranties. You know those things you asked to purchase every time you purchase an appliance, electronic equipment, or even a car. Ever wonder why?
The fact is the retailer gets as much as 50% of the price you pay. ALL PROFIT.
Do you really need it. Most likely not. The manufacturer’s warranty usually covers less time than they figure the item will last. If something goes wrong it is generally during the manufacturer’s warranty period. I usually divide the expected life of the purchase by the price I give. I find, unless I do something stupid and break it, my extended warranty goes unused.
My first experience with extended warranties came many years ago, (when they were something new). I purchased a VCR from a well known outlet store. They talked me into purchasing the EW, (extended warranty). After 1 month it broke. The manufacturer’s warranty was still in force. Of Course. But here is the kicker. The store would not replace it. Give me a loaner, or anything. The extended warranty did not entitle me to anything. It was another 3 months before I got my VCR back. I had to make the payments for 3 months, without having the product. A contract is a contract. I live up to mine.
My second encounter was when I purchased my first Big Screen TV, about 11 years ago. I still have that TV everything works fine. Knock on wood. The warranty went unused. Another TV I purchased 16 years ago is still running just fine. I did not purchase a warranty on this one.
It is up to you whether you purchase the extended warranty. As for me I don’t have the money to donate.
That Is How I See It.