extended warrantiesThere was a time when extended warranties for electronics made sense, but has that time come and gone?

With the ever decreasing prices for computers and gadgets, extended warranties have gotten to a point that they seem pointless on anything except really high-end desktops or laptops.  For instance, on a $499 Dell right now, it would be $209 for a 3-year warranty.   My thinking has become over the years it is better to put that $209 away into a side fund and let it collect interest for the three years.

Almost all computers come with a one year warranty any more, and speaking from experience, that is when most problems occur.  In all my years of running computers, I think I have used an extended warranty a grand total of one time.  As I noticed this, I started setting aside the money from each “warranty”, and about every third computer I needed was bought with warranty money.  (mind you, I buy more computers than the normal person as I run a business)

Now, this rule doesn’t apply to laptops for me as they are still so expensive, and the same with higher-end gaming desktops, but for pretty much everything else such as TVs, video game systems, DVD players, while it is tempting to protect your investment, when you do the math of how long the warranties last verses the cost of the item, you generally will find they don’t make the most financial sense.

Our recommendation is you always do the math for yourself, but in general, we have given up in believing in them.

Categories: General Computing Tips   
 

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