It is no secret that "extended warranties" (EW) by and large are nothing more than a big "cash cow" for most companies. They do not push them because they have a sincere desire to replace the product should it go belly up. They push them because they make much more profit on EW than on many of the items that they sell. I do not purchase EW in most cases. I look for products that carry good warranties in the first place. Here is the fuzzy math that will incourage you to NEVER waste your money on one of these over priced cash cows again. Let's say they sell an upper end laptop computer for $1,000 (their cost is less). If they have a failure rate of 5% it means 5 out of 100 that they sell is going to have some type of problem during the warranty period. If they charge just $200 for an EW, that is an extra $20,000!!!!! Place that extra money in an interst bearing account and the interest alone may pay for the failures.It is insane when you run the numbers and see what they are REALLY up to when they try to make you think an EW is to your benefit. If you stop buying EW's, if would force them to either sell better quality products or go belly up.
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Today's Featured Article - The 8N and the Fox - by Zane Sherman. Dec. 13 1998, Renfroe, Alabama. Last niht I dreamed about the day that I plowed the field of about 10 acres over on what Jimmy and Dandy called the Ledbetter field. I was driving the 1948 8N Ford tractor that Jimmy bought in 48 new This was prebably in about 1951 and maybe even befor the house was built. This would have made me to be about16 years old and I drove the tractor for nothing and would have paid to drive it if I had had any money which I didn't, but neit
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