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Part-by-Part Extended Warranty Torture | 53 comments (53 topical) | Post A Comment
It's not about one item, it's about many[ Parent | Reply to This ] (none / 0) (#17)
by Anonymous User on Fri Nov 16, 2007 at 10:54:31 AM PDT

If you look at an extended warranty in the context of actually having to use it on a single item, it makes sense. But if you look at the failure rates on pricey items, over time it never makes sense mathematically. You will save more money in the long term if you never buy an extended warranty, even if you have to pay repair or replacement costs out of pocket. If it were any other way, it would not make financial sense for retailers to offer extended warranties.

If you worry about repair and replacement costs, try this: Every time you are tempted by an extended warranty offer, don't do pay for it. Instead, take 20% of the cost of the extended warranty and put it aside in a repair fund. I guarantee you that over time you will be paying more into the fund than you are taking out for repairs.

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video joiner[ Parent | Reply to This ] (none / 0) (#70)
by Anonymous User on Thu May 22, 2008 at 02:18:08 AM PDT

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Part-by-Part Extended Warranty Torture | 53 comments (53 topical) | Post A Comment
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