We have all experienced it: you go to the store to buy a new DVD player, or television, or whatever, and the salesman tells you what a fantastic product it is, and you will love it. Then when you get to the cash register to pay, that same salesman wants to sell you a “three year warranty” in case something goes wrong. But wait, you say: if this is such a great product, why would it break?
Extended warranties and service contracts are free money for the store. Most products don’t break before the warranty expires, and even if they do, what are the chances that you have kept the original sales slip, the original packaging, and the extended warranty paperwork? Probably zero, so the store will never have to pay out.
Even worse, most products have a manufacturer’s warranty included, so you don’t need the in store warranty.
As a general rule of thumb, say no to store warranties, and save your money.