Deal? Or No Deal?

3. Extended Warranty


Your new PC is just a few mouse clicks and $700 away. Like most desktop computers, it comes with a limited one-year warranty. But for another $190, you can extend the coverage to four years. Deal?

NO DEAL!There's a reason extended warranties are highly profitable for manufacturers: Buyers seldom cash in. PCs, and consumer electronics in general, are very reliable these days.

"If you take care of your equipment, you really don't need a warranty," says technology analyst Rob Enderle of the Enderle Group.

Besides, four years is an eternity in the computer world. If your PC breaks down in three years, you'll want a newer, faster machine by then, not a replacement. Save the $190 for a down payment on your future upgrade.

If Warranties Don't Matter, Perhaps Security Does: Most Secure Computers

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