Extended Warranties
A hot selling point for many manufacturers is to offer consumers an extended warranty. While warranties are a very important part of making a major purchase on appliances, vehicles, and property. The concept of an extended warranty is to offer protection that covers a longer period of time. Any extended warranty is going to cost the consumer more money and that price is added in at the time of purchase.
It isn’t just large ticket items that are coming with the option of an extended warranty anymore. A few weeks ago I purchased a TV at Wal-Mart for a couple hundred dollars. I was offered an extended warranty on it for $30. I refused as the TV already comes with a full five year warranty. I have the same brand of TV in my living room and it has worked perfectly for the past 12 years so I think I am safe.
One large ticket item that you may serious want to consider purchasing an extended warranty on is a vehicle. The more miles that a vehicle gets on it, the higher chance you will have of eventually needing some kind of repairs. Vehicle repairs generally cost you quite a bit - my experience has always been that I can afford the parts but paying for the labor is ridiculous.
If you consider getting an extended warranty on a vehicle make sure you ready it completely. There will likely be some loopholes or items not covered that you need to be aware of. If you the extended warranty offers you a good deal then you should make the investment.
You do need to be careful about extended warranty scams as well, especially in relation to vehicles. You can get an extended warranty through the dealer who sells you the vehicle but you can also get it through an independent company. You need to do your research to make sure they are a reputable company.
Extended warranties are one of the newest ways companies make more money off of consumers. In many cases you really don’t need the added coverage and in others you do. It has to be based on a case by case basis. If you do choose an extended warranty plan just make sure you fully understand what the coverage is that you are purchasing.
