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If you're spending $800, $1,500 or $3,000 for an appliance, then it's definitely worth getting one, Rimini says. Others, though, don't believe they're worth the cost. For example, warranties may run for as little as one year or extend up to five or more years, and cost less if purchased for a longer period of time.
While it may sound like a good idea in theory, extended warranties often come with a high price tag and don't necessarily cover everything that could go wrong. Plus, many people who buy extended warranties never use them. In that case, an extended warranty becomes a cost with no financial return.
Extended warranties are rarely worth your money. Products don't break on their own, and when they do, the price of repairs is usually lower than what you'd spend on an extended warranty. Sure, some people have saved a lot of money with extended warranties.
In general, we don't recommend buying an extended warranty on a used car. Warranty companies are in business to make money, and they've usually done their homework. This means you'll likely spend more on the warranty than any repair costs your car may accrue during the period when the warranty is valid.
In general, the average extended car warranty cost ranges from $350-$700 per year, but every person and policy is different. When your car needs repairs, and you don't have coverage, the mechanic will require payment in full.
Buying an extended warranty is always beneficial, especially if you are looking at keeping your car for long. Yes, it may not cover some parts and faults, but what you get is a lot. And even though it might cost you a premium, it can save you big money in the long run or help you sell your car.
But are they worth it or will what you spend be money down the drain? First, consider the manufacturer's warranty. While factory warranties do vary, most offer a year on parts and three months on labor. And, in most cases, out-of-pocket repairs do not cost much more on average than an extended warranty.
If you're spending $800, $1,500 or $3,000 for an appliance, then it's definitely worth getting one, Rimini says. Others, though, don't believe they're worth the cost. For example, warranties may run for as little as one year or extend up to five or more years, and cost less if purchased for a longer period of time.
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