Tag: Extended Warranties

Cyber Monday Advice: Don’t Buy the Extended Warranty

 

For a change in pace from all the politics, I thought I’d offer a little consumer advice as we head into the Christmas shopping season. To wit, buying an extended warranty is almost always a bad idea.

To explain why, let me show you a graph of the typical life-cycle of a manufactured product. In engineering we call this a ‘bathtub curve’ because of its resemblance to the shape of a bathtub:Bathtub Curve