Extended warranties 'could be a waste of money'

At a time when many Aussies' bank accounts are looking far from healthy, the last thing we need is to be wasting money on unnecessary things.

According to fair trading minister Anthony Roberts, Aussies who buy extended warranties on new products and services could be throwing their cash away.

He told ABC Sydney that some retailers put shoppers under pressure to purchase the extra cover, even though there are already laws in place that protect buyers.

For example, somebody who buys a brand new, rather expensive flat screen TV would quite rightly expect it to work perfectly for more than two years – therefore, an additional two-year warranty really should not be needed.

"What we're seeing now with retailers is that with their margins decreasing, they're falling back on selling people extended warranties that quite frankly people don't need," Mr Roberts was quoted as saying.

A recent study undertaken by the Australian Securities and Investments Commission showed that Aussies have a habit of wasting money and only 54 per cent of the population can account for every single cent they spend.

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