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In this video tutorial, Alejandra on Twitter explains the reasons behind not buying extended warranties. She mentions that twelve percent of the typical extended warranty covers the statistical probability of the item breaking. The money paid for extended warranties goes towards salaries, overhead, profit, and marketing fees to the organization selling the warranty. For example, if you buy a $1500 extended warranty for your car, the dealership likely makes seven hundred thousand dollars, while the average repair cost is only a hundred and eighty dollars.
