Service Contracts

By Lisa Monroe

If you have purchased any type of electronics or home appliances recently you were likely asked if you wanted to buy an extended warranty on the product. Even if it already comes with one you can choose to lengthen the period of time. Generally these types of extended warranties are very affordable too so you can easily think they are a good deal. Companies are making billions of dollars each year with these types of warranties.

You need to make sure you understand what is covered in that service contract though. Generally you will be asked at the checkout if you want it. They don’t give you anything to read and they certainly don’t give you all of the details. As a result of this many consumers presume they have coverage that doesn’t really exist on their product. They are frustrated and upset when they try to get the item replaced or repaired and then they get the details of that service contract they paid for.

One way to avoid this issue is to get the information on what you are planning to buy and then go home with it. Call the company that makes what you are interested in and talk to them about their service contracts like these You can also access most of them online and read them completely before you make the purchase.

If you don’t like what information you find then you have a couple of options. You can choose to buy the product but not waste your money on the extended warranty. The other choice is to look at buying another brand that you like the terms of better.

The experts out there though are telling consumers to not fall for this marketing ploy though. They haven’t found these service contracts to be worth it. They are just one more way in which the manufacturer is taking in more money from consumers. They are offering lower prices on the product to make the initial sale and then making a profit at this point.

Another reason why they don’t recommend these types of service contracts is because the product should do well enough that you don’t need to extend the warranty. Look for items that offer a very good warranty from the moment you buy it at no extra charge to you. For more information about contracts go to

“Lisa Monroe is a Prolific Writer, Forensic Editor & respected Instructor in Social Sciences & Humanities. She enthusiastically studies past and current behavior & interaction, is a dedicated teacher & married mother of three children living in Sugar Land, Texas.” More of Lisa’s articles can be found here

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