Talk of The Villages Florida - View Single Post - a/c and appliance service contract
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Old 05-03-2012, 08:23 PM
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When you're buying a car, a home or an appliance, more than likely you'll be pressured to buy a service contract, or "extended warranty," as part of the purchase. The warranty, you'll be told, covers repairs not covered by the manufacturer's warranty, or will extend coverage after the manufacturer's warranty expires.

But is this really true?

Are extended warranties a good buy? Companies selling them insist that they are, claiming they save consumers hundreds, even thousands, of dollars in costly repairs. But consumers filing complaints with ConsumerAffairs.com tell a different story.

Judging from the seemingly countless complaints we've received, there are five good reasons why consumers shouldn't buy the extended warranty.

1. They Usually Cost More Than They're Worth
2. Warranty Work May Be Unreliable
3. The Warranty May Not Cover What You Think It Does
4. Warranty Underwriter May Go Out Of Business
5. The Extended Warranty May Overlap Manufacturer's Warranty

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