It is no secret that "extended warranties" (EW) by and large are nothing more than a big "cash cow" for most companies. They do not push them because they have a sincere desire to replace the product should it go belly up. They push them because they make much more profit on EW than on many of the items that they sell. I do not purchase EW in most cases. I look for products that carry good warranties in the first place. Here is the fuzzy math that will incourage you to NEVER waste your money on one of these over priced cash cows again. Let's say they sell an upper end laptop computer for $1,000 (their cost is less). If they have a failure rate of 5% it means 5 out of 100 that they sell is going to have some type of problem during the warranty period. If they charge just $200 for an EW, that is an extra $20,000!!!!! Place that extra money in an interst bearing account and the interest alone may pay for the failures.It is insane when you run the numbers and see what they are REALLY up to when they try to make you think an EW is to your benefit. If you stop buying EW's, if would force them to either sell better quality products or go belly up.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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