How to Avoid Making a Deal Not Such a Good Deal
Electronic items are popular gifts and where there is an electronics seller there is a seller of extended warranties. Should we or shouldn't we opt for the extra protection? According to Consumer Reports, usually we'd be better off taking a pass. The organization says products rarely break during the extended warranty period and when they do it seldom costs more than the cost of the warranty to repair them. The only items where extended warranties are recommended are rear projection microdisplay TVs and Apple Computers. Such TVs are expensive to repair and Apple only provides 90 days of tech support for free.
Matt's View
It'll take some resolve to resist the pressure to buy an extended warranty. After the sales person assures you of the quality of the product you decide to buy, the person who talks to you about an extended warranty often points out all that can go wrong with the product. Apparently lots of people cave in to fear. Consumer Reports estimates shoppers will needlessly spend a collective $1.6 billion on extended warranties for electronics and appliances this holiday season.
This article filed in: Spending
Managing Money by The Book
- "Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock." - Matthew 7:24-25
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