Something that hasn't been mentioned is the friends financial situation.
Can he afford to spend $1000 next year if something needs to be fixed? If he is bad at budgeting and will instead spend the savings on gravy with his fries and organic free trade food leaving him in a dire financial situation should a repair bill come up then the warranty may be a good thing.
I assume the warranty is rolled into the price so he would be paying for it for a few years.
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