Bangalore: The holiday season you notice your city is flooded with sales. You grab this opportunity on making big purchase. From colorful curtains to refrigerator to plasma television. The moment you leave the store you’re inevitably faced with another option at the checkout: an extended warranty. Many of us ponder on what to buy, whether to purchase a warranty or an extended warranty. Wondering what is the difference between the two. Well, all goods are sold with an independent and standard manufacturer's warranty; this typically only covers particular parts or types of damage for a limited period of time. While an extended warranty can provide long-term peace of mind or provide a gift that is covered against any form of damage, it comes at a considerable cost. This can be as much as 50 percent of the initial purchase cost.

Before you give in to the persuasive deal check out these facts about warranties.

Retailers Love Them

Every single product that comes with a warranty, the retailers earn more profit from warranty contracts on appliances and major electronics than they do on the products themselves. That the reason you notice the sales people persuade you into buy the extra coverage. Did you know that you pay 10 percent to 20 percent more for an item to extend a one-year manufacturer's warranty?  It is very among the retailers to hand off the contract to a third-party administrator in exchange for up to half of what you paid.