An extended warranty can sound like a safe and really good investment when you are making a large purchase such as a new car, a big flat screen TV, or an expensive set of luggage. But, in my opinion it ALWAYS best to stay away from extended warranties, as the ones I’ve had over the years have been near impossible to cash in on at all, even when the language in the contract appears to say I should get a benefit.
In this episode of What Ted Says, I’ll share with you the specific reasons why I FORBID you to get an extended warranty and what you should be doing with the money instead of buying that piece of paper.
Why, you may ask? Well, the worst thing about an extended warranty is that it is overpriced. In fact, about half of what you pay goes to the salesperson's commission. So a lot of the money you hand over doesn't even go toward the purpose of the warranty, which is to pay for things that go wrong with the car over the contract period.
