Extended warranties that only promises to fix what ever breaks in your computer for the next 5 years are pretty much just a scam. Companies know that most people will decide to upgrade rather than fix an ageing computer. The cost of the replaced parts will be less in the upcoming years making those 500$ extended warranties an odd thing to purchase. You also don't have a choice of the parts they put in.
To give you an example, the graphic card on my ageing, 5 year old, computer died recently and I manage to get a better one for 60$. If I would of been on the 5 years, 500$, extended warranty – they would of replaced my graphic card with the same one that probably would of also cost around 60$ today. I would of lost 440$!
Buying extended warranties on products that depreciate in value is an odd thing to do since you almost always end up on the loosing end. It is usually best to learn how to fix things ourselves rather than buy those extended warranties.
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