Extended Warranty Contracts

What is it? Warranty coverage on an item that kicks in after the warranty coverage provided by the manufacturer or seller expires. Many consumers are encouraged to buy extended warranties (also called service contracts) when they buy cars or appliances. In the case of appliances and electronic equipment, extended warranties are all profit for the seller and not much benefit to the buyer because only about 3% of goods ever break down during an extended warranty period. An extended warranty may make sense, however, if you are buying a brand new model in the first few months after it has been manufactured.

Added By: Ella

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We hope you now understand the meaning of Extended Warranty Contracts. If you need any more information on this term, please don't hesitate to contact us.