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Are Extended Warranties a Waste of Money?

Extended warranties are offered by retailers to provide cover for the cost of repairs in case of product faults after the manufacturer’s warranty has expired. But the extra expense involved in these extended warranties are generally a waste of your money, according to Consumer NZ.

You’re usually already covered. Under the Consumer Guarantees Act (CGA), manufacturers and retailers are obliged to guarantee the products they sell are of an acceptable quality, fit for their purpose. and expected to perform well for many years, not just the period covered by the manufacturer’s warranty.

If your product develops a fault when it’s still reasonably new, you can have it repaired or, if that isn’t possible, replaced; if the fault is substantial, you can choose between a refund, repair or replacement.

Therefore, there’s probably no value in having an extended warranty.

Accidental damage should be covered by your home and contents policy – for example, your contents insurance should cover damage to computers and electronic appliances from power surges.

For more information from Consumer NZ click HERE

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