By Clyde Noel

Town Crier Correspondent

Three years ago your brother-in-law bought a used car and invested an additional $800 in an extended warranty. Now he is bitching because he never used it.

A friend recently bought a refrigerator without an extended warranty and had to shell out $250 when it broke down right after the manufacturer’s warranty expired.

Whose decision was best?

Consumer Reports magazine has warned people for years that extended warranties are not worth buying. Statistics suggest that extended warranties are not worth it, especially for electronic items. Typically, the product doesn’t break down during the manufacturer’s warranty period or the specific repair needed isn’t covered.

“You’re buying peace of mind,” said a small appliance dealer. “Consumers think they are getting protection, but quite often the product is already covered by a warranty.”

An extended warranty is a form of insurance you can buy, in addition to a manufacturer’s warranty, for a specified length of time and coverage. A manufacturer’s warranty is included with the purchase of many appliances and provides limited coverage for a designated time at no cost.

Extended warranties are most common on expensive items with long life spans, such as cars, stereos and appliances.

The cost of an extended warranty depends on the type of item, length of contract and service required. It typically costs $50 to $1,500 for one to five years of coverage.

Consumer advocates say to base the decision on whether to buy a warranty on the type of product and how long you expect to use it. Extended warranties are common on cars, especially used ones, because of the unknown risk and possibility of expensive repairs.

Whatever the pluses and minuses, extended warranties are big sellers. Circuit City reports that more than 5 percent of their fiscal sales are from extended warranties.