Never a fan of Extended Warranties (Service Contracts), Consumer Reports once again published an article against buying Extended Warranties.

Consumer Reports suggests you should put money away for a potential event which is a great idea if you have enough put away when you have a failure – and hopefully not a major failure.  There are many article on recent surveys where over 60% of households don’t have $500 for emergency situations.

Extended Warranties (Service Contracts) are not a good deal if you don’t need it and your product never experiences an expensive failure before you buy a new one.  If you knew in advance which products will fail and which would not fail that would be perfect – but that’s not possible.

If you can afford major repairs then don’t buy an Extended Warranty (Service Contract).   If not, consider buying one for Peace of Mind and to protect your investment.

Not all plans are created equal and you should know who you are buying from and what is covered.

Article:  http://www.consumerreports.org/shopping/dont-buy-extended-warranties/