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Extended Product Warranties: To Buy or Not to Buy?

RELEASED December 11, 2008
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Episode Summary
Statistically speaking, extended product warranties aren't generally worth the money, but there are some purchases that warrant extra insurance. Find out when it's smart to buy -- and when you should say "no thanks" -- in this HowStuffWorks podcast.

Announcer

Welcome to Stuff You Should Know from howstuffworks.com.

Josh Clark

Hey, and welcome to the podcast. How are you, Chuck?

Chuck Bryant

I'm good. This is Take 2. We rarely do two takes but Josh messed up so bad we had to do Take 2.

Josh Clark

Should we tell them what I said?

Chuck Bryant

No.

Josh Clark

Okay.

Chuck Bryant

Because then we'd have to do Take 3.

Josh Clark

All right. Well, anyway, this is Stuff You Should Know, and as Chuck just said, it's Josh here and Chuck there. And we were talking earlier about how it's getting to be that time of year again.

Chuck Bryant

Right. 'IT is the season'.

Josh Clark

Time to go cut down a perfectly healthy tree, prop it like some sort of corpse in the corner -

Chuck Bryant

Hang things on it.

Josh Clark

Yeah, exactly, decorate it, shuffle into the malls and turn out our pockets.

Chuck Bryant

Right. Buy things for your family and friends.

Josh Clark

Right. Have the endless debate over whether or not Walmart greeters should say Happy Holidays or Merry Christmas and just basically celebrate another year passed of surviving.

Chuck Bryant

Right. That's what we do at my house since Christmas is all about the survival of yet another year.

Josh Clark

Yeah, opening soup cans with pen knives and -

Chuck Bryant

Yeah, it's good stuff.

Josh Clark

Yeah. So, yeah, I guess what Chuck and I are saying is the holiday season, it's upon us. And clearly the one question that always comes to mind for me is should I or should I not buy an extended product warranty.

Chuck Bryant

Right. And I know a lot of times our podcasts are really interesting tidbits that you can share at the water cooler -

Josh Clark

Yeah, not this one.

Chuck Bryant

Well, no, this isn't interesting in that way but I think a lot of people don't know whether or not to purchase them because they're faced all of a sudden at the register and they're kind of in a panic so we're trying to help you out here.

Josh Clark

Exactly. This is precisely why we're broadcasting this podcast. It's - I never knew and once I found out, I was happy to know actually.

Chuck Bryant

Sure. Because, yeah, it's become like this real high pressure sales pitch and it comes when you're almost out the door and then all of a sudden, like, oh, well, of course you want the extended warranty, right? And I'm, like, I don't know. Do I?

Josh Clark

Right, it's, like, do you want the apple pie at McDona
lds.

Chuck Bryant

Yes.

Josh Clark

All of a sudden you're thinking, I don't want an apple pie -

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