Say 'no thanks' to extended warranties - MoneySense

Say ‘no thanks’ to extended warranties

You’re better off repairing or replacing the item yourself



Purchase a new TV or computer these days and you’ll likely be offered an extended warranty that goes beyond that of the manufacturer. Don’t buy it.

Manufacturers and retailers know precisely how likely a product is to malfunction and they price warranties to yield a generous profit margin for themselves. You’re usually better off to pay for repairs or a replacement yourself.

Besides, if your new TV does break down three years after you buy it, how likely is it you’ll be able to find the receipt?