Extended warranties: Don’t waste your money

Consumer Reports feels so strongly that extended warranties are a waste of money (with two possible exceptions) that the consumer organization took out a full page ad in USA Today that says simply:

“Dear Shopper,
Despite what the salesperson says, you don’t need an extended warranty.
Consumer Reports”

Yet, according to Consumer Reports, shoppers are expected to spend $1.6 billion on extended warranties this holiday season. Think about that -- that's not for merchandise, it's just for warranties. Read Why You Don’t Need an Extended Warranty to learn more about this issue and to find out the two exceptions to this advice.

Salespeople can be very pushy with extended warranties because they are so profitable for the stores. A technique that I have used to halt that part of the sales process is to ask, “Are you telling me that I’m buying a product that will likely break in the near future? If the quality isn’t any better than that, maybe I should reconsider this purchase.”

Sometimes it works, sometimes it doesn’t. Some salespeople are more persistent than others. But the bottom line on extended warranties is that, in most cases, you should just say no to them.

Jackie