When you buy anything from a car to a new television these days you're likely going to have the opportunity to buy extended warranty. For some things, like computers, there is a good chance that you're going to want upgrades in the next few years. But you might not be sure if you want to pay for the warranty for a simple camera or your printer. Here are some things to think about that might help you decide.
You should not have a firm rule as to whether or not you're the type of person who's going to buy extended warranty. There are people who will buy it for everything from the phone that they use as a salesman for flashing lead to their headphones. And then there are others who will refuse to buy without even listening to what the warranty includes. Treat each product with a fresh perspective of whether or not a warranty would be worth the money.
You should also know the difference between a warranty and a service contract. A warranty means that you are sending those used woodworking machines or music player back to the manufacturer and if it can't be fixed they are likely to send you a new one. A service contract usually goes through the store that you're buying the product from. For example, if you were to by a service contract for two years on a television from Best Buy that would mean that you could bring it in to any of these stores to be fixed for free for that time.
Weigh the difference between paying for the warranty and paying for a replacement should something happen to your existing product or getting it fixed. If you're buying a car to get you to your job than you will likely find that there is a big difference between the two numbers. But there might not be as much difference when you consider what happens if you break a stereo in a year's time. If you're someone who likes the latest model than you might be looking for a replacement anyway.
There is no right answer as to whether or not buying the extended warranty is going to be the right decision. You might find that with cheaper items that buying the warranty and needing to send something in when it gets broken is just not worth the extra effort. On the other hand, if you're buying something for your small business than you might be willing to spend a little more for the security that if your equipment doesn't work you can get a replacement.