Extended warranties
People blow hundreds of dollars a year on extended warranties. You don’t need them, you have alternate ways to get what you bought repaired, and the retailer benefits more than you. If you have ever bought an extended warranty, it was probably at the behest of a cashier or sales associate, right? That’s because the retailer keeps 50% of whatever they charge for extended warranties.
Most consumers do not spontaneously request to pay for an extended warranty. Over 65% of consumers were approached in-store and pitched the option of buying an extended warranty. According to Consumer reports, the average price consumers paid for extended warranties was $78. Consumers paid $126 on the average for larger, major purchase appliances and electronics.
The product itself usually has its own 12-month warranty . If it doesn’t, or requires too much paperwork bureaucracy to attain, most credit cards have free product warranty features for purchases made on the card. Also, any costs of repair may not cost more than the extended warranty plan. The difference between cost of repair against an extended warranty may be $26 on the average.
