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Appliance extended warranties are not worth the cost most of the time. A scenario is described where a faulty oven is not repaired promptly despite having a warranty. The video explains why extended warranties usually do not work and how they operate. It also mentions one instance where purchasing an extended warranty may be beneficial. The high demand for appliance service is highlighted, with over 40,000 service calls logged in Boston last year for appliances bought from the store. The lack of technicians to handle appliances purchased elsewhere is a major issue that is expected to worsen due to manufacturer shortages.