Adjust Elect Warranty For Free

alejandra on twitter says I saw you tweet about extended warranties why wouldn't you buy one well let me help you with the numbers on an extended warranty folks twelve percent of the typical extended warranty whether it's electronics computers cars twelve percent covers the statistical probability of the item breaking so if one thousand air conditioners are covered by an extended warranty twelve percent of the money paid in for extended warranties is paid back out to cover the repairs on the one thousand air conditioners or whatever item you want to put in that front in that sentence the rest goes to salaries overhead profit the majority of it goes in a marketing fee to the organization selling the extended warranty in most cases well over half so if you buy a $1500 extended warranty and add it into your finance plan on your car the dealership likely made seven hundred thousand dollars on that and on average your repair on that would be a hundred and eighty dollars on average during the covered repair during the time the warranty is on there out of fifteen hundred dollars on average you're going to receive a benefit of one hundred eighty dollars that's the national averages so what we're saying here is is the reason people sell extended warranties at best buy at your car dealer with your heating and air company and so on the reason people sell extended warranties is because they make a bundle on them in commissions you can't buy a freaking pencil at Best Buy without them pitching you an extended warranty I mean I bought an iPhone case a piece of rubber for goodness sakes and they wanted to give me a warranty on it you can't buy anything because they make more money at Best Buy on extended warranties and on your finance plan where you take 90 days same as cash no paid off in 80 days than they do on the sale of stuff they don't make a lot of money on this they don't that they actually the TVs and the stuff at Best Buy all right the you know that those type of big-box electronic stores that you know the washer and dryer there there is not a lot of margin in those things they don't make a lot of money on they make more on the extended warranties and on the credit around it than they do on the actual merchandise in other words they're an extended warranty store that sells financing oh and they happen to have some electronics mathematically that's where they make their money in other words so for you the consumer or for me the consumer if we self insure through that item breaking down instead of spending fifteen hundred dollars we have the average expense of a hundred and eighty let's say we have eight an expense that is twice the average oh three times the oh four times the whole five times the average we have five times as the thing breaks down five times more than the average thing does you still come out with half your money five times think about it you still come out so you're spending a bunch of money that you're not getting anything for it...