Extended warranty scam

The other day I went to buy a new iron, you know the type used to press shirts and trousers etc. When finalising the sale I was asked if I wanted to buy extended warranty.
I said no.
It's all a scam and you rarely get any real value for this 'extra protection'.
It was a modest amount for the iron, but it can be a huge extra amount when buying a higher priced TV or a car. The salesperson pushes you hard, because they (and their company) get a cut on the sale ie. they get a commission.
Avoid the temptation and don't get sucked in; it doesn't make economic sense.

Here are some finer details about extended warranty from an official consumer protection source ...

The salesperson may offer to sell you an extended warranty or care package when you purchase goods such as a new computer, television or fitness tracker. But sometimes paying extra for an extended warranty doesn’t actually give you anything extra.
If a manufacturer’s warranty is only for 12 months the retailer may tell you that an extended warranty will cover the product for three years. But it is important to remember that you automatically have consumer guarantees under the Australian Consumer Law.
The supplier guarantees that your product will:
* Match the description given (e.g. by the salesperson, on the packaging, or in advertising about the product)
* Match a sample or demonstration model
* Be fit for purpose
* Be of acceptable quality.
Being of acceptable quality means that the product is free from defects and that it will work properly and last for a reasonable period of time.
If you buy a home entertainment system that costs $2,000 and the manufacturer’s warranty is only for 12 months, you would reasonably expect the system to last longer than that. If the system stops working when you’ve only had it for two years you would expect the retailer to offer you a remedy.
The type of remedy will depend on the problem and whether it can be fixed easily. For a major problem, such as the entertainment system not working at all, then you are entitled to a refund or to have the system repaired or replaced. For a minor problem, such as one of the speaker covers cracking after just a few months, the supplier could replace that individual speaker with a new one.
So before buying an extended warranty, always ask the supplier if it gives you anything over and above your automatic consumer guarantees.
You don’t have to buy an extended warranty – it is optional.
Suppliers must not:
* pressure you or use unfair tactics to get you to buy an extended warranty
* mislead you about your rights under consumer guarantees.
If you have a problem with something you’ve bought then contact the supplier about providing a remedy. If the supplier is not willing to cooperate then put your request in writing. Send the supplier a short email or letter outlining the problem and what you would like them to do. If the problem remains unresolved after seven days then contact Consumer and Business Services for advice about your rights.
Click here for more information about your rights
or contact Consumer and Business Services on 131 882.