Think carefully about the value for money offered by an extended warranty, as you may not need one and it is likely to be expensive compared with the amount you would normally pay out in repair costs - that’s the advice being issued by the OFT.

Making your money go further is important, so if you are thinking about buying any electrical items this Christmas, make sure you know the true cost of extended warranties.

From tablets to games consoles, TV's, cameras, laptops and kitchen ‘white goods’, extended warranties are often offered to give you 'peace of mind'.

However, as a consumer, you have statutory rights if something goes wrong. Consumers are protected by the Supply of Goods and Services Act 1996 which states that goods must be as described, of satisfactory quality and fit for the purpose.

In addition, the new goods you buy very often have a manufacturer’s guarantee that usually lasts for one year, so there may well be no little benefit in paying extra for an extended warranty when you buy the goods.

The OFT suggests that before you buy a warranty, you should consider the following:

• Be prepared to walk away – sales staff often get commission from the sale of these warranties and are therefore keen to offer them at point of sale, even if they duplicate manufacturer’s warranties.
• If you do decide to buy a warranty, remember you don't have to buy one in-store. Take time and shop around for the best deal.
• Although warranties generally do offer additional rights, you may also be covered by your household insurance.

It is certainly a good idea to shop around for some quotations before signing up to a warranty. You should also check that the warranty company has an agent on the Island to carry out any repairs, otherwise you might have to send the purchase away and pay the postage.