Should I buy an extended warranty on my Dell Inspiron?

Episode 1004

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.

Scott Wilkinson

Episode 983

Scott Wilkinson says that the average lifespan for a TV, whether due to failure or users just wanting the next best thing, is about 5 years. With the current pace in the development of the state of the art, people are moving on. Scott doesn't recommend extended warranties in general. Electronics are either going to fail right away, or after a long time. Leo says that extended warranties are a profit center.

Scott also says that because of decreasing profit margins, and losing market share to Korean electronics firm, Japanese companies like Sony are really struggling.

Should I get the extended warranty on the 2013 car I buy because of it being more computerized?

Episode 913

Victoria from Santa Ana, CA

Leo thinks this extended warranty is just an upsell. He doesn't generally recommend extended warranties on personal electronics. It's basically insurance, and it is a profit center for the company selling it. Ultimately, the decision is up to her on whether or not she thinks she'd benefit from this.