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Alejandra on Twitter questions why people wouldn't buy extended warranties, explaining that 12% of the cost covers the likelihood of the item breaking. The majority of the money goes towards salaries, overhead, and profit, with a large portion going towards a marketing fee. She gives an example of buying a $1500 extended warranty and adding it to a car finance plan, stating that the dealership likely made $700 and the average repair cost would be $180.
