When you’re out shopping this holiday season, you may be tempted to buy an extended warranty for your new gadget. But, before you do, the BBB wants you to consider these questions first.
If the product breaks, will you WANT to get it repaired? With technology improving so quickly, you might want to upgrade to a newer version rather than fix the old one.
Will the repair cost more than the extended warranty? Ask the salesman for the cost of a typical repair, and calculate a “break even” point.
Is there a good chance that the product will break – and if so, will it break when the warranty is still in effect?
If the answers to these questions are “yes”, than buying an extended warranty may be a good investment. Otherwise, save your money for a “rainy day” repair fund.