Extended Warranty: When is it worth it?
TG
Last updated 06/27/2021 by
Tania GallowayAll right, I’ll admit it; I’m a real cynic. I always think there’s a hidden agenda. Furthermore, I still think there may be a scam hiding in every offer made by a retail business. So, when I purchase an electronic gadget and get offered the extended warranty, my suspicion is automatically aroused.
Are extended warranties manifest money grabbing scam or are they worth it?
According to consumerreports.org, you should skip the service plan on purchases like electronics and appliances. They also mention that products rarely break within the warranty period. Also, they the fact that some repairs may already be covered by the manufacturer’s basic warranty on the product.
If these plans are such a scam, why are major retailers, with precious reputations to protect, offering them on such a regular basis? I did some additional research and found these scenarios where having bought the extended warranty will save you time, effort, and money.
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Repairs Outside The Manufacturer’s Warranty
![warranty](/_next/image?url=https%3A%2F%2Fcdn-blog.supermoney.com%2Fwp-content%2Fuploads%2F2015%2F10%2Fbest-full-coverage-extended-warranty-company-whats-covered.jpg&w=3840&q=75)
You can also ask your friends, who have bought similar items, what repairs theirs have needed since they’ve bought them. Find out what the most common complaints are about certain products or certain brands and then compare those to the manufacturer’s warranty.
When Products Are Cheaply Made
![warranty](/_next/image?url=https%3A%2F%2Fcdn-blog.supermoney.com%2Fwp-content%2Fuploads%2F2015%2F10%2Flaptoprepair.jpg&w=3840&q=75)
When Products May Outlast The Warranty Period
![warranty](/_next/image?url=https%3A%2F%2Fcdn-blog.supermoney.com%2Fwp-content%2Fuploads%2F2015%2F10%2Flewis-watch-repair-1024x576.jpg&w=3840&q=75)
When Repairs Or Parts Are Expensive
![warranty](/_next/image?url=https%3A%2F%2Fcdn-blog.supermoney.com%2Fwp-content%2Fuploads%2F2015%2F10%2FCar-Warranties.jpg&w=3840&q=75)
When Products Rate Low For Reliability
![Repair](/_next/image?url=https%3A%2F%2Fcdn-blog.supermoney.com%2Fwp-content%2Fuploads%2F2015%2F10%2FIphone-5-Repair-San-Diego.jpg&w=3840&q=75)
When Buying A Used Product
Sometimes you can buy an extended warranty on a reconditioned or pre-owned product. Again, taking into account all the above criteria, it may not be a bad idea to have the extra coverage. This is especially for big-ticket items that may require expensive repairs or have more potential for breakages. Purchasing the extended coverage may buy you peace of mind.
The secret to making the right decision, when it comes to extended warranties, is to educate yourself on the product. Know what’s already covered by the manufacturer’s warranty and by your credit card’s guarantee, familiarize yourself with the moving parts of the product, ask your friends what they think of the product, and know how much it would otherwise cost you to repair it yourself. After you’ve done this initial amount of research, you can breathe easy, knowing you’re covered.
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