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Extended Warranty – Part I

Extended Warranty – Part I
March 19
13:53 2018

When purchasing an appliance, electronic product or hardware, consumers often look out for the warranty offered on the product.

Everybody wants value for money and assurance that back up service will be available if the product becomes faulty. In cases where the warranty term is short,

consumers opt for an extended warranty for the safety of their newly purchased product.

An extended warranty is a prolonged warranty offered to consumers in addition to the standard warranty or manufacturer’s warranty on new items.

Extended warranties are sold as an add-on item at the time of purchase of goods, such as computers, washing machines, or services, such as trade services.

 

Extended warranty is:

 Entered into around the same time as the goods or services are purchased; and

 Purchased at a cost additional to the price paid for the goods or services.

 

When businesses sell extended warranties they must provide consumers with full information about the extended warranty, including what is covered under extended warranty and what is not covered under it.

Businesses must also clearly inform the consumers what action would the business take to remedy any complaint against products which is under extended warranty.

The business must also inform the consumers on how many times a business would repair or replace an item under extended warranty and what would they do should a particular brand of item be no longer available in the market.

Such information ensure that the consumer is aware of thebenefits that the warranty provides and can decide whether they are better protected through purchasing the extended warranty.

Retailers sometimes offer to sell you an extended warranty or care package to extend the length of time of the manufacturer’s warranty.

Some may tell you that an extended warranty provides extra protection that you wouldn’t usually get.

However, this is not true, as the extended warranty would provide same benefit and protection as manufacturer’s warranty, however, you may purchase the extended warranty for a longer period compared to manufacturer’s warranty which is mostly for one (1) or two (2) or three (3) years.
The extended warranty is an optional product and the consumer can decide either to invest in it or not, after weighing the options and risks associated with the product.

The businesses cannot put any undue pressure or use any unfair tactics on the consumer and get them to purchase the extended warranty.

A little-known fact is that extended warranty prices are not negotiable and the best way to get a great deal is to shop around and find best coverage that fits your needs.

 

Clever consumers

As a consumer, you must be clever enough to identify the lifetime of the product, for example, if the lifetime of a product is one year and the product does not have manufacturer’s warranty, then the business may trick you into buying warranty for a year, which means that as soon as the warranty finishes, the product will go bad.

In such a case, you as a consumer will not benefit as the business will not assist you.

If a product which is protected by an extended warranty stops working or develops some kind of problem, then the product can be taken back to the same business from where it was bought and it may be repaired free of charge.

If the product cannot be repaired then it should be replaced with a similar model as per the terms and conditions of the extended warranty.

If the good in question cannot be repaired due to the fact that that model is outdated, then it is the responsibility of the

business to replace the product with a similar product of the same value, specifications, free of charge.

With reference to the motor vehicle industry, if a consumer has purchased a firm out new vehicle from a car dealer and the vehicle has manufacturers or extended warranty, and if the current owner sells the vehicle to new owner, the residual warranty, be it manufacturers or extended warranty, would be transferred to the new owner of the vehicle at no additional cost to the new owner of the vehicle.

Next week, we will look into some of the questions consumers should ask themselves before deciding to purchase an extended warranty and identifying whether it is true value for money.

Feedback:  maraia.vula@fijisun.com.fj

 

 

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