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Extended Warranty or Not? |
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So you've bought a new HDTV and the salesperson insists you need an extended warranty. You may want to keep your money in your pocket. However, if purchasing a rear-projection TV, do consider purchasing the extended warranty since repairs for these televisions on average cost about three times as much as other TVs.
Extended warranties are a gold mine for retailers. These warranties often generate a profit margin of 50 percent or higher – sometimes more than the profit on the items themselves. A recent Consumer Reports study found that extended warranties are often a waste of money because products rarely break down within the covered period, typically three years. If indeed, the item does break down, repair costs are generally about the same as the warranty costs
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