Are Extended Warranties a Waste of Money? #AskTheMoneyGuy

Are Extended Warranties a Waste of Money? #AskTheMoneyGuy

Hey money got family chose bran preston back with another episode of ask the money guy that’s right you guys have financial questions we’ve got your financial answers go out your favorite social use the hash tag ask the money guy or go directly to our website money guy calm you can ask a question there it’s bryan preston the buddy guy so bryan this is what we get

All the time in the consumer space so what makes a big purchase or a big product and as soon as you sign the dotted line that you’re gonna buy that thing the sales person immediately asks do you want to buy the warranty should you buy an are they worth it extended warranties you just said the perfect thing that we didn’t talk about and preshow these sales persons

Will ask you if you’re interested look these things are big business this industry is now as big as 40 billion dollars a year and we did some research on this from consumer reports which i always find out roenick because consumer reports hates the tesla but man i still kind of am stuck in my way so i like hearing their input on how i spend my dollars and they did

A whole deep dive on it and this is one of those things i think you need to know you can equip yourself on should you do extended work but what do you think if you like them eyes off the cuff i personally don’t like them but however i also don’t like when i spend a lot of money and i’m naked and unprotected so i like the thought of knowing if something goes wrong

I’ve got this warty little step in and pay for it it’ll show me some money so p some it makes me sleep at night right so it surely it’s got to be a good thing so the research shows that about a third of consumers do buy these extended warranties primarily on major appliances that’s why that’s where a lot of them are buying but so what does consumer reports take

On it they think you ought to pretty much give it the hand and not be interested for three main reasons the first one is is that you probably in your head and this is pretty common human nature is we always think the worst of everything is that you are overestimating the risk that this piece of equipment or technology is actually going to break yeah so that’s the

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First thing is that you’re probably thinking something’s going to go wrong when the odds of it are very small the second thing is if something does go wrong especially like a major appliance the cost of repair is probably a lot cheaper than you realize you know it’s always amazing is that like i had an era frigerator go out after like seven years now this is not

Part of an extended warranty but you know i freaked out because the food starts getting hot but the guy comes out and after you pay the service call the part really wasn’t that expensive so and then some fixes typically don’t cost much if you weigh that to what you’re paying for the the extended coverage plus if there’s any deductibles that they require you to pay

On the repair you might find that the expense of repairing it it’s actually not that out of pocket and that’s actually the exact math that i do i ask myself how often how many things can go wrong that i have to fix before i should recoup my costs the extended warranty and usually it’s like you have to have two or three service calls or two or three things go wrong

Before you make your money back and odds aren’t just like you said the chances are pretty low probability that something is going to happen that mad with a brand new piece of equipment and then that leads to the third thing you probably already have coverage and don’t realize it so what’s kind of transition into what are those hacks using that fancy word that it

Seems like all the cool kids use what are the hacks that make sure that you’re actually getting this extended coverage and let’s do it the best way possible let’s just make it free so prepaid or included to what you’ve already done the first thing in boat you know about this most credit cards if you’re buying a piece of equipment with a credit card come with an

Extended warranty that’s right just simply by purchasing on that credit card it doesn’t really matter what thing it is or what item it is just by using that credit card it extends the protection above the normal manufacturer’s warranty that comes with a problem usually it’s 12 months so if you if most electronics come with like a one-year warranty you use a credit

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Card it’s go push it to where you have a two-year warranty right from that and and bow if you’re wondering is this legit is this something that actually works i had a roku player probably two or three years ago go out on me and it went out a year it wouldn’t went out around 14 months into it so it was out of warranty found my receipt because i think i bought it

On amazon or something so it’s easy to go find receipts on amazon and it was so easy to actually follow the extended warranty i got a replacement and what i thought was cool is not only did they reimburse me they just sent me a check for what i paid for this thing that i’d already gotten 14 months worth of enjoyment out of but i was able to buy a better unit that

Was like in 4k or whatever because they had upgraded the model obviously since the time i did it so it is true protection so that’s one thing look at credit cards that’s a great hack the second thing is pay attention to where you’re buying the goods from because there’s a chance that you might get some added protections just by where you buy it for instance if you

Buy major appliances or electronics like tvs computers just because you bought them at costco costco automatically just gives you an extended warranty coverage of up to two years okay now listen to this this is what’s crazy if you use the costco visa credit card and you buy it at costco and then use the costco visa the costco visa is going to get you an additional

Two years of protection on these electronics those four years of coverage you potentially have four years of coverage just by where you bought it and then using the credit card that had the extended warranties so all these things as you can see it’s going to be hard even if they offered you an extended protection plan are you really gonna need protection that’s

Going to take you past four years so my question is brian if extended warranties are not a good deal and not bad are they all bad should we forgo all extended warranty question because there is one major exception and though i know you know where i’m going with this because you have a wife you have kids or kids i have the teenager what is the thing we all are just

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Addicted to but and we walk around with it but it’s expensive yet next your smartphone guys if you have a smartphone look it’s not even this is how the technology world has changed it’s not only the smartphone it’s your smartwatch it’s your ipads so consider apple care or samsung offers on their galaxy phones and so forth there’s extended protections you really

Might want to consider that is the one exception to the rule is that you can consider buying on those smart phone phones some protection i can tell you the i got this brand new apple watch this is the second one i had i kid you not the first two weeks i owned it i don’t know who did it i’m not gonna look at my wife but somehow it was knocked off the charged and

In our bathroom and i noticed the back crown was completely busted i thank goodness i had the applecare on it and it was a complete they replaced the namib got a brand new one they asked him when i went to apple and i said hey um what would have happened if this is the only two weeks in owning this they said yeah you just be out of the hundred dollars you’re the

Basically go buy a whole new one because there’s no protection and so i would definitely consider it on those smart phones on those smart gadgets that you’re wearing the wearables look at the extended protection on that this was a great question if you have a question about how you can stretch your dollars a little bit farther how you can make the most of your

Money go out to our website money you can ask us a question right there or on your favorite social you can use the hashtag ask the money guy we will answer your question right here in the tesla guys thanks for the questions keep them coming and bo and brian will talk to you soon money guys out

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Are Extended Warranties a Waste of Money? #AskTheMoneyGuy By The Money Guy Show