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Extended warranties sound perfect. A simple service contract that at a minimal cost takes care of most pricy repair jobs for a long time. It looks too good to be true in some cases which may make people wonder, what is it that makes these contracts beneficial and more importantly profitable for the providers? What is the business model that supports this seemingly neat endeavor?
In this article, we will break down the economics of extended warranties. We will also talk about the basics of finding and purchasing an extended warranty which could save you from potentially devastating repair bills down the line.
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