CNET Article: Should you pay for an extended warranty?
In our rush to purchase that gift or other "shiny new" gadget from local retailers, there is sometimes the tendency to ignore important small details especially the issue of warranty for the item. In most instances the item will be one which may not necessitate the extra few bucks on extended warranty, however, where the price of the purchase is significant, you should give serious consideration to the extra investment.
Tom Merritt, the Executive Editor of CNET.com discusses the details surrounding the usefulness of the extended Warranty.
"When you buy a product at a big electronics store, sales folks always push the extended warranty on you. Some people buy them every time, just to be safe. Others flatly refuse before the salesperson can mouth the letter W. You should probably behave somewhere between these two extremes but lean toward politely saying no.
Stores see extended warranties as pure profit. They cost a small amount of a salesperson's time and since most gadgets don't need repair, there's a huge profit margin. So does it ever make sense to buy one of these things?
You have to judge every warranty purchase on a case-by-case basis, but here are a few guidelines when making the call."
Read: Should you pay for an extended warranty?
Source: CNET