Extended Warranty - $1.6 Billion Scam

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Extended Warranty - $1.6 Billion Scam

Post by Terry » Mon Nov 27, 2006 9:51 pm

According to the Consumer Reports, most extended warranties are not worth the money. Most electronics we buy these days don't break down that easily. The warranties sold last years amounted to $1.6 billion. Retailers make more money from warranty sales than the actual products.

Best Buy is especially aggressive about selling you a worthless warranty. I bought a $15 phone a few months ago. I was asked at the checkout whether I wanted a warranty for it. I said "No.", then the cashier asked me why, to my surprise. :roll:

For 2 items, Consumer Reports recommends buying an extended warranty, one for plasma TV and the other for Apple computers. I'd add that if you buy a laptop, you should get the best warranty you can afford. Repairing laptops is very expensive. Laptops are much more susceptible to damages than people think. If you ever need to make one repair service call during the warranty period, you get your money's worth.

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