Should I buy an extended warranty on my Dell Inspiron?

Episode 1004 (2:13:04)

Steve from Culver City, CA

Steve wants to know if he should get an extended warranty on an old Dell Inspiron laptop. Leo says no, that Dell is only worth about $200. If the computer breaks, it's just cheaper to buy a new computer.

Extended warranties are revenue streams for retailers. If it fails, it's going to likely do it in the first year. One thing to consider is to see what a comparable laptop will cost and then compare it. If he can't replace it with anything comparable, it may be a good deal. Generally speaking, they aren't a good deal.