Understanding extended warranties
Extended warranties have become a common offering when one buys various products, ranging from electronics to appliances and even vehicles. These warranties provide added protection beyond the manufacturer’s or seller’s standard warranty, providing peace of mind to consumers. However, understanding how these warranties work is crucial to ensure consumers make informed decisions.
What are extended warranties? An extended warranty can be defined as prolonged protection on the purchased product, allowing consumers to request a free remedy from the guarantor in case of defects after the standard commercial and legal guarantees expire. For this additional protection, consumers are required to make an additional payment.
“Consumers may discover products with standard warranties that offer benefits comparable to the extended warranties
Before purchasing an extended warranty, consumers should be aware of their legal rights and the protection these rights give them. These rights stem from the Consumer Affairs Act, which mandates that all consumer-purchased goods match the description and specifications in the contract of sale. Goods must also be suitable for their intended purpose, and must exhibit the typical quality and performance expected of similar goods.
If the purchased goods fail to meet these criteria, consumers have the right to claim a free remedy from the seller. These remedies can take the form of a repair or replacement of the problematic good, or part or full refund when neither repair nor replacement prove to be feasible solutions. The time limit for consumers to claim these remedies is two years from the date the consumers take possession of the purchased goods.
Consumers should also be aware that the majority of the products available for sale include a standard commercial warranty, typically offering sufficient protection. By shopping around and evaluating various brands and sellers, consumers may discover products with standard warranties that offer benefits comparable to the extended warranties they are contemplating purchasing.
Before deciding whether or not to buy an extended warranty, consumers must make sure they read the fine print. It is in their best interest to gather information about the real benefits the warranty offers. While the length of the guarantee is important, it is even more important to check what the guarantee really covers.
Does it only cover mechanical breakdowns or does it also cover wear and tear and accidental damages? If the possibility of using the extended guarantee is quite remote, then it might not be worth its price.
Special attention should also be given to the remedies available under the guarantee. Does the guarantee only cover repairs of the defective good or does it also offer replacement with a new product?
Consumers should also check if the extended warranty includes additional costs to be paid when executed, such as transport costs or a call charge. In instances where such expenses are applicable, they should be explicitly outlined in the terms and conditions of the warranty. If these costs are not mentioned in the guarantee, they cannot be imposed on consumers after purchase.
Additionally, it is crucial to ascertain whether the extended warranty covers both parts and labour. If it only covers replacement of the damaged parts, consumers should inquire about the company’s hourly repair rates.
Other factors to consider include the price of the extended warranty, the value of the product it covers, and the expense of replacing it without warranty coverage. An extended warranty typically proves beneficial if it does not have many restrictions of use and if the covered product entails high repair or replacement costs.
Prior to purchasing an extended warranty, consumers are also advised to check whether they already have similar coverage through a homecontents insurance policy. For example, if the consumers’ existing home insurance already includes protection against accidental damages for such products, there may be no need to acquire additional coverage.
In summary, extended warranties can provide consumers with added protection, but they come at a cost and often also with limitations. The decision to purchase an extended warranty is ultimately the consumers’ choice; sellers cannot compel consumers to buy one.
Moreover, when opting for such a warranty, consumers must ensure that all terms and conditions promised by sellers are clearly written on the guarantee’s documents. These conditions are legally binding and must be honoured by the guarantor. When guarantees are not honoured by traders, consumers can seek the assistance of the MCCAA’s Office for Consumer Affairs.
Odette Vella is director, Information and Research Directorate, MCCAA.
WWW.MCCAA.ORG.MT ODETTE.VELLA@MCCAA.ORG.MT