Selling extended warranties can be profitable for stores, which is one of the reasons why many merchants encourage consumers to purchase them. Such warranties are particularly popular for the following items:
Electric appliances
Vehicles
Computers and phones
Unfortunately, extended warranties fail to live up to the hype in most cases. Generally, electric appliances and electronic equipment do not develop defects within the first few years. If they break down, the items are most likely still covered by their original warranty. According to Consumerreports.org, you may be better off by saving up for car repairs. Extended car warranties are overpriced, and most consumers pay more for the warranty than the coverage they receive.