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We all have been shopping online since we got lazy, and we shop for everything online, from groceries to electronic devices. However, when purchasing an electronic device, especially for a beginner, we always purchase an extended warranty for a specific product that costs a few extra rupees, and we are fine with that; however, do you remember when you used your extended warranty? And is it worth paying that much for an extended warranty? Nowadays, every device comes with a warranty for a month or a year, depending on the device; some machines also come with a 5-year or 7-year warranty. Still, you can also purchase an extended warranty.
What is an Extended Warranty?
An extended warranty sometimes called a service agreement, a service contract, or a maintenance agreement, is a prolonged warranty offered to consumers in addition to the standard warranty on new items. These warranties are usually limited in time and scope. Thus, you’ll frequently find the item’s reseller (sometimes the manufacturer) trying to (up) sell you on the extra coverage. That coverage is called an extended warranty or sometimes a protection or service plan/contract. The latter is more accurate, as no one can extend a warranty except the original manufacturer. For an Extended warranty, you need to pay an extra amount to avail of it depending upon the plans and the guarantee on the item. A whole firm of companies is giving you the best deals on extended warranties, but some banking credit cards also provide you with a free Extended warranty.
Is an Extended Warranty Worth Buying?
For most people, the answer is NO, and even the consumer report says that it is a waste of money to buy an extended warranty.
Let me tell you why; remember the two questions I asked above; when was the last time to have used your Extended Warranty? And is it used? Was it worth it? The reason for asking these questions is wherever your device breaks and its warranty period is over; it doesn’t cost more to repair from a local shop or a dedicated service center of the company. The cost of a single repair is less than the cost of a warranty. And in today’s world, people don’t even repair electronic devices. They directly replace it due to growth in technology. The last year launched device gets outdated within a year. And if you are using a device for three years, rather than repairing it, the majority of people surely will replace it, and the extended warranty will get wasted. Saving up a little cash for a possible repair is a much wiser investment than purchasing the extended warranty. At the very least, read the fine print on any extended warranty thoroughly because there will be plenty of limitations on the coverage.
Extended warranty repairs take forever or require several tries to get it right you see that a lot less if you pay for a fix outright. You may be directed to send your broken product away for who knows how long before it gets “fixed.” Chances of the warranty allowing a local establishment of your choice to do the fix are doubtful, so you can only reclaim the device if a repair takes less time. You are always better off dealing with the manufacturer for repairs. They have a reputation to uphold.
As extended warranties are more expensive, after purchasing one, you will have to pay for the warranty and interest on it. You will pay interest if you finance it on your credit card and don’t pay it off within 30 days. That warranty will cost you even more money over the years. Also, the warranty can cost you more than the item is worth. Always figure out the total cost before you sign up.