Extended warranties are the "Flim Flam", "Snake Oil Salesman", Carnival Barker and "Old tyme Used car salesmen" scammers your Mommy and Daddy used to warn you about!
1) Put the money you were going to waste on such a poor investment in the bank.
2) From the Consumers Affairs Website...Industry sources put the profit margin on consumer electronics extended warranties at between 40 percent and 80 percent.
3) It's particularly infuriating to consumers when they purchase an extended warranty, only to be told it doesn't cover their repair when they try to use it!
4) Hundreds of thousands of American motorists found they were holding worthless extended warranty policies following the bankruptcy a National Warranty Insurance Co. Offering extended warranties through 5,000 car dealers nationwide, the company had about a million active contracts when it went under.
5)The Federal Trade Commission says consumers, before signing any extended coverage contract, should fully understand its terms and coverage. The agency also stresses that what consumers are actually buying is not an extended warranty but a "service contract."
I know that Consumer Reports has said for many years not to bother with extended warrnties..BUT also a Harvard University Study says the services included in Exrended Warranties aren't as valuable as they are made out to be.
In fact most warranties expire unused...either way, if you do choose to buy an extended warranty understand that chances are good that you're simply paying for peace-of-mind and probably not much else.
All of which implies that you can certainly buy extended warranties if you wish..or just eliminate the middle man and flush the money directly down the toilet!
