Are you thinking of buying a new appliance> Maybe your old appliance broke down is about to break down. Either way, it is time for a new appliance. When you do inevitably go to your house appliance dealer, you will likely be offered the option to buy an extended warranty. Don’t buy the extended warranty.
You will end up losing money. In this video, you will learn why extended warranties will cost you more than they are worth.
Why are warranties so bad? On average, only 12% of extended warranty money is ever paid out. Not many people actually need their extended warranty. They only think that they do. This means that you will be losing 88% of your money on average. Those are obviously not good odds. This doesn’t just apply to appliances. This applies to cars and electronics as well. A better policy is to save some money in your budget for broken appliances or electronics. Things will inevitably break, but not enough for warranties to be worth the cost. On one last note, if the item comes with a warranty, that is completely fine. You just don’t want to be paying extra for it.