Each week, the Students in the Free Enterprise (SIFE) Team from the Henry W. Bloch School of Management, with assistance from a group of respected business people, will answer your financial questions. John Valasquez, a business major, asked: “Are extended warranties worth it?” We have all been through it before. Anyone who has purchased an electronic device or some other expensive item has been offered the chance to buy an extended warranty. The question still remains, though, are extended warranties worth it? Well the simplified answer is: it depends, but in most cases, no. First, you need to realize these extended warranties are HUGE profits for sellers. They can sometimes make more of a profit selling the warranty than they do on the actual gadget or item! For digital cameras, flat screens, and vacuum cleaners, the chances … Read entire article »