Finding a great deal on a new television is a big win for your wallet! As you add the TV to your cart and start to check out, you may be tempted to add an extended warranty in an effort to protect your purchase. Is it really worth it?
In this article, I’ll discuss whether an extended warranty for a TV makes financial sense and get money expert Clark Howard’s thoughts
Is an Extended Warranty for a TV Worth It?
Clark has a hard and fast rule on buying extended warranties:
“When should you buy an extended warranty? Never, ever on appliances or electronics,” says Clark. “Salespeople will tell you that an extended warranty protects your investment. But a TV, a washer or a DVD player is not an investment.”
But on big-ticket items — those that cost thousands of dollars —an extended warranty may seem to make sense.
Clark doesn’t want you to throw money down the drain on things that don’t appreciate in value. So while he’s a hard-liner when it comes to extended warranties, he does allow for one major caveat.
Clark’s Exception to His Rule on Buying an Extended Warranty
“The only meaningful exception to my extended warranty rule is on a car,” says Clark. “Yet I only suggest you consider a warranty if you know you don’t have enough savings to pay for a major component of a car breaking. …
“And then I only suggest the car manufacturer’s own warranty. Never buy a third-party auto warranty.”
Clark says buying extended warranties is almost always a waste of money, especially for electronics and appliances.
He allows for one more exception, but this one isn’t for buyers. “When it comes to homes,” says Clark, “I only recommend that sellers of homes might consider buying a warranty as a way to provide confidence on paper about the house to a potential buyer.”