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Avoid the extended warranties to your purchases

Posted in: Money Saving Tips
Sep 20, 2010 - 11:34:38 PM


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Extended warranties are often pushed for a retailer to make a profit. Nowadays when you buy anything and chances are you will be pitched an extended warranty to go along with it. Extended warranties can come from the manufacturer, the retailer, or a third-party that does business with the retailer. Retailers that do not repair in the store, sell extended warranties that are third-party policies. Extended warranties that you buy the warranty from the retailer, another company deals with your claims. Extended warranties can be expensive as much as 10% of the purchase price of the product. If you buy a $2000 TV you don’t really need to spend another $200 just in case something goes wrong with it. It comes with a one year warranty anyway and if you buy it using a major credit card like a visa or master card in most situations the warranty doubles, you are already up to two years’ protection.

Extended warranties may be from a third party, there fore you may not even get service from the store you bought it from. Another tier of customer service can lead to delays. If you buy an extended warranty never lose your paper work as the company may say the burden is on you to prove that you do have coverage. No paperwork could equal no coverage. Extended warranties are sometimes worth having and there may be extra features that make them worth considering. When you bought your refrigerator, if you purchased an extended warranty for $100, you would receive three water filter which worth $30 each, so it seemed like the warranty was worth getting. Extended warranties for car that warranties offered through car manufactures and new car dealers are more reliable than warranties offered by used car dealers.

You will be pressured to sign an extended warranty when buying a new car. don’t do it, because if you decide later that you want the warranty then you can go back and purchase it when the three year warranty that comes free with the car is up. It means warranties are expensive and offer extremely limited protection.The best way is not to get pressured into spending more money on extended warranties just because a salesperson is advising you that it is a good move. You should spend as much time considering the warranty as you did the item you were purchasing.


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