I have long been of the belief that extended warranties offered on any product are an absolute waste of money. The benefit that you get out of them is usually zero, and most companies know that. For the majority of all products which generally have this extended warranty, their average lifespan far outweighs the short time of these extended warranties. On a side note, I am the type of person that likes to buy a brand new electronic (whether it is a laptop, flat screen TV or something else) and keep it for a long time. So if there were ever a person that an extended warranty was designed for, it would be me.
Let’s say for a moment that you were an expert in the following areas: computer repair, auto repair, insurance, mortgages, purchasing electronics, credit cards and your credit score.
If that were the case, wouldn’t life be sweet? You could fix your computer for free, you’d never have to take your car into the shop, you would always know that you were getting the best rates on all types of insurance, you would know that you had the best mortgage available, you’d get the best prices on the electronics you buy, and so on. All without ever having to enlist the services of a paid professional.
I remember my days back when I was about 7 or 8 years old. I started my own business, so to speak, cutting grass in the neighborhood. I had just finished cutting a neighbor’s grass, and life was just grand. There was the smell of fresh cut grass in the air (what could ever be wrong with that?) and I had a fresh $3 in my pocket. Yes, back in those days, my going rate was the whopping sum of $3 per yard. It took me about an hour per yard. And that $3 in my pocket made me about the happiest kid on the block.