Are Extended Warranties a Waste of Money?

The sales pitch is almost so solid and based in logic that it is hard to argue when you are at the register with your new pricey purchase. "Would you like to get the 2 year extended warranty today for only 14.95?" The numbers and the choices zip around in your head and you are left scratching your noggin, does it make sense? While it may seem very logical, there are a few things you should consider before you buy an extended warranty.

First, remember that these warranties are put together and scrutinized by people that are much more intelligent than we are. If a company thinks it is a good business move to assume the risk for your product for an extra two years for this price it is because they can make a profit. You can be sure that testing has been done and this project is as durable as the warranty offered with it.

Next, consider the amount of money it would take to repair the product you are buying if it failed and you didn't have an extended warranty. In most cases the risk of having to pay something in the future, or not paying something, is enough to not get a warranty. If your television goes out after the manufacturer's warranty, how much would you pay to have it repaired or would you just buy a new television?

Finally, most people don't understand that simply by using the products they buy as they are intended to be used will extend their life. Reading the manual that comes with your new purchase may not be overly exciting, but it can save you a lot of money and frustration down the road. Using the product as it was intended will, in most cases, render the need to buy a warranty useless.

The next time you are asked about purchasing an extended warranty it will help to remember these facts. Remember that your product is important, but so is getting it for the right price.