While most products sold today come with a short-term manufacturer’s warranty, customers are increasingly encouraged to invest in extended coverage for an added layer of protection.
However, there are instances where such warranties don’t necessary offer value for your hard-earned money, depending on the type of product in question, your purchasing method and your existing statutory rights. The cost of an extended warranty may also be an issue, as there are some instances where this outstrips the value of the purchase in question.
In this post, we’ll look at the basic principles of warranties and consider the instances in which extended guarantees offer the best possible value for money.
Warranty Basics – What do You Need to Know?
Manufacturer guarantees are free at the point of purchase and will last for a predetermined period of time, depending on the nature of the product in question and its expected lifespan.
Extended, third-party warranties work in a similar way to those issues by manufacturers, as they cover the cost of future repairs and maintenance over time. However, these guarantees are usually purchased directly by consumers, while they can also include variable lengths and terms that impact on the value for money that you’ll receive.
This is an important consideration, as there are times when an extended warranty is either not required or disproportionately expensive. There’s little point in purchasing an extended warranty for inexpensive and relatively disposable products, for example, while you must also appraise the cost of this coverage in relation to the potential price of repairs.
Don’t forget, you also have statutory consumer rights that apply to everything you buy as a consumer.
In fact, the Consumer Rights Act of 2015 already dictates that you can seek an immediate refund if your TV or washing machine breaks down within six months of purchase, with the onus placed on the manufacturer to prove that the appliance was not faulty when you bought it.
Under some circumstances, you may even be allowed to return goods (particularly consumer electronics) up to six years after you’ve bought them, so it’s always important to make an informed decision that enables you to save as much money as possible.
So, When do You Need an Extended Warranty?
Despite these considerations, there are also several instances in which extended warranties offer huge value to consumers.
This rule particularly applies to big-ticket purchases such as a new boiler, as while premium brands occasionally offer extended warranties of up to 10 years on selected products, others come with much shorter guarantees that don’t reflect the average lifespan of a modern boiler.
Make no mistake; modern, A-rated boilers often boasts a lifespan of up to 15 years, so considering third-party coverage from a supplier like Warrantywise can slash maintenance costs over time.
A similar principle can be applied to buying a car, as most vehicles come with a manufacturer’s guarantee that lasts for around three years.
So, without an extended warranty from a third party, you’ll be liable for the full cost of automotive repairs as your vehicle ages and its value depreciates.
