Is It A Good Idea To Get An Extended Warranty?
For sure an extended warranty is not new to you when you’re someone who had made major purchases. An extended warranty serves as an insurance policy in the form of consumer purchases. This means if your brand new entertainment showcase stops working at the time your warranty is expired, you’ll still be covered when you’re able to purchase an extended warranty for it.
Besides, there’s a good reason why retailers offer extended warranties for consumer purchases – to boost profits. If you think that it will favor you at all costs, well it does, but most of the time it is a marketing strategy for retailers to gain more profit. So, before you jump ahead and accept the deals, you might need to learn more of the few reasons why an extended warranty may not serve you well as you’d think.
The Manufacturer’s Warranty is Good Enough
Almost every pieces of equipment and other products comes with a standard warranty from the manufacturer. Your manufacturer’s warranty will adequately cover the necessary parts and labor that you need for your purchases for a year if deemed needed. It is not new that most consumer products may have a minor breakdown during the first years, and more costly problems during the span of several years. However, if to sum the expenses, an extended warranty is deemed to be overpriced insurance that you might not be able to utilize.
Extended Warranties is Limited
Extended warranty has limitations, meaning it does not cover everything as youd think it would. So, before you sign up, make sure that you read everything including the ones stated in teh fine prints. In fact, in most cases, at times when there are minor breakdown, your extended warranty for $60 might not cover a few of what is needed for its parts or labor.
The Depreciation in Value
Surely, you’ve heard the statement about a buying a car losing half of its value when driving it out of the dealership parking lot. This can be the same proposition in terms of consumer electronics. With the fast phase industry and advancement of electronic sets such as laptops, Blu-ray players and many more, you can potentially own the latest one out of what you are paying in your extended warranty. Thus, rather than throwing your money or bundle, it would be wiser to save it for rainy days in your emergency fund. This way you can easily afford to buy a new one or repair any bread down that may occur.
Know If You’re Already Covered
If making major purchases through your credit card, it is possible that it comes with an insurance that you may need to verify as to what extent. This is because whenever making purchases through your credit card, your insurance warranty duration or lifetime may be doubled. To find out whether you are covered or not, the best thing that you can do is contact your card issuer and check with them. If covered, this is more than what you can get rather than getting an extended warranty and paying for it. Additionally, you also have to ensure that you have sufficient funds in paying your credit card debt in time if not in full after the said purchased. This way, you can avoid sky-high interest rates and the drastic effects of facing debt problems. You might also find out on how you can lower your credit card interest rates.
Products Rarely Break Down on Their Own
Consumer reports revealed in their study that 5% to 37% of the small electronics and home equipment or appliances are likely to break down. Most of the time several products break down due to negligence and the usual wear-and-tear, which is automatically not covered by an extended warranty. This would mean that before you decide to spend or throw a dollar on extended warranty, you might need to ask yourself and weigh your chances through the facts stated mentioned in this article.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.