'Dave Ramsey Gets Them!': Store Worker's Warranty Pitch Backfires When He Realises Who He's Talking To

Financial guru Dave Ramsey recently shared on his 'The Ramsey Show' an incident that occurred when he visited an electronics store. While trying to purchase a product, the store assistant immediately suggested he buy an extended warranty at checkout. When Ramsey declined, the assistant said: 'Well, Dave Ramsey gets them.'

Ramsey burst into laughter, assuming the person knew who he was. When he clarified, saying, 'Dave Ramsey does not get them,' the store assistant insisted that he did. The conversation escalated as the person began arguing, until Ramsey handed over his driver's licence, and he ended up uttering a colourful expletive.

What is an Extended Warranty?

Ramsey had previously explained in a 2025 post that you might have been eyeing an espresso machine for some time and finally decided to purchase it. Before completing the transaction, the cashier suggests adding an extended warranty, which might seem appealing if you're worried about something happening to the machine.

You end up paying the extra cost for peace of mind, even though the product comes with a manufacturer's warranty. A warranty is essentially a promise from the company that if a product malfunctions or breaks within a specified period, they will repair or replace it free of charge. Today, warranties are common on electronics, cars, backpacks, washing machines, and many other products, lasting from 60 days to a lifetime.

An extended warranty, however, is an additional insurance policy that covers the product beyond the original warranty period, sold separately for an extra fee.

Ramsey Thinks Extended Warranties Are Not Worth It

Ramsey argues that the likelihood of needing to use an extended warranty is very low. Companies have conducted research to determine when their products are most likely to develop issues. They then sell you an extended warranty that expires just before the typical fault occurs.

If most customers actually used their extended warranties, companies would lose a lot of money. He believes that the standard warranty included with new products is usually sufficient, and paying extra for an extended warranty is unnecessary.

Furthermore, an extended warranty doesn't guarantee full coverage. For example, your TV might be covered if there's a faulty wire, but it might not cover damage caused by lightning striking your house and frying the device. These warranties often exclude specific parts or types of damage.

Companies also push extended warranties because it's a lucrative scheme. If you think you're saving money, be aware that these plans are often overpriced. Additionally, a significant portion of the commission from selling extended warranties goes to the salesperson, not the customer.

Business incentivisation is clear: sales staff are encouraged to promote extended warranties because they boost profits. Overall, Ramsey considers an extended warranty to be a total rip-off that benefits only the seller.

An Emergency Fund Is a Better Investment

Ramsey recommends instead setting aside the money you would have paid for an extended warranty into an emergency fund. This fund could cover repair costs if your product fails after the standard warranty expires. If it doesn't, then the money remains yours — a win-win situation.

In fact, building an emergency fund provides greater peace of mind, giving you financial flexibility and protection without paying inflated prices for warranties that you're unlikely to use.