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Why Buy the Extended Warranty?

Updated: 9/16/2019
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11y ago

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If there is one piece of paper that has been vilified through history without just cause, it is any piece of paper that contains an extended warranty. The extended warranty is definitely seen in society today as a complete taboo a piece of add-on salesmanship that the unscrupulous commission-based employee of the company is trying to tack on to your sale at the end of a purchase, almost as if he is trying to sneak it by you in the time between him ringing up the sale and you actually signing the credit card receipt.

When you put it like this, it is more the salesman that it is the extended warranty that should be given a bad rap. The extended warranty is actually a very good investment for many large assets, and can save people a great deal of trouble when it comes to protecting those assets without having to come out of pocket for a large lump sum expense.

The extended warranty is the only document that a manufacturer will usually take when it comes to defective products. Other types of insurance may protect against accidents and things of that nature, but only the warranty can protect you from bad parts or bad delivery. The extended warrantee, because it expands on the manufacturer's warranty, is also usually the most complete document of protection that a large asset can have.

What people should do when they are trying to decide whether or not to get an extended warranty is to forget the salesman completely. They should weigh the actual terms of the warranty against the money that they have to spend, and only after they have done this and determined the potential economic fallout of giving up an extended warranty should they say that the warranty itself is not worth the extra money.

However, you can even turn the situation of a pushy salesman to your vantage. If the salesman is overly pushy, in certain industries this is actually a good thing, as it shows a weakness in his position. Perhaps he has to make a certain quota to keep his job. If this is the case, then you can definitely negotiate on the price of the extended warranty.

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