With the holiday season rapidly coming to an end, it is likely that you have heard the word warranty multiple times while purchasing or receiving gifts and other items. While the term is slightly overused by sellers and buyers alike, its full meaning remains somewhat unknown to the majority of people.
A warranty is a legal obligation for the manufacturers of a range of different products. The items have to meet certain quality standards so as to ensure that they can function as intended for at least a particular amount of time from the moment they are sold.
Warranties state that if the product in question were to stop working, the manufacturer or dealer would take care of replacing or repairing it at no additional cost to the final user. These contracts feature a few clauses, though, and often won’t cover damage deriving from an improper use of the item or ordinary wear and tear.
In layman’s terms, a warranty is a safety device for your new item. If, for instance, your shiny new tech gadget were to suddenly refuse to work as intended, the brand that created it would have to take care of the repairs or provide you with a suitable replacement. Of course, dropping your phone from the 10th floor of your apartment complex or dipping your new media player in a bucket of cold water won’t be valid reasons to request free maintenance.
Should You Buy A Warranty Extension?
When sold, the largest part of high-value products will come with some form of warranty. Tech gadget and other electronics are usually guaranteed to work for at least a year, while larger items such as cars or appliances might be protected longer.
Still, several shops will allow you to extend your warranty by paying an additional amount of money. The terms of service will vary from place to place and might include free repairs, eligibility for a replacement, a discount on spare parts or the possibility to send your defective item to an affiliated shop that should, in theory, perform the repairs at a lower price.
Whether you should consider paying for extended warranty or not mostly comes down to your lifestyle and to the use you intend to make of your item. Most professionals, for instance, end up swapping their personal phone for a new one every year to keep up to date with current technologies and trends.
In such a case, paying for extended warranty might be an unnecessary expense. Before doing so, consider taking a few moments to analyze and plan the life of your purchase.
If you think the item you are buying is worth the additional protection or you feel like it could break easily, extending its warranty might be a winning move. Electronics, as well as appliances and tech gadgets, turn out to be extremely hard and expensive to repair once they break, after all.
Your ability to fix the item in question yourself, at the risk of incurring more damage also come into play when making the decision to buy a warranty. Is your knowledge of the item proficient, and are you confident you can make the repairs yourself?
With specialists charging exorbitant rates for a repair, some owners have turned to trying their luck with soldering guns and screwdrivers. Spare parts for the majority of common appliances and gadgets can be found online. Once you have acquired them, a bit of practice might save you a small fortune.
When To Insist On Getting A Warranty
The scenario in which you are most likely to be unprotected against scams is, of course, when buying used goods. Especially when dealing directly with a previous owner, the risk to be sold a defective item is a lot higher than it would be brand new.
In these cases, insisting or directly asking for a warranty is a must. A used car sold at a much lower price is appealing, but having to spend additional money to fix its problems over the course of the next six months would be an unpleasant experience. The same goes for appliances, electronics, and the majority of other goods.
Dealing with used items is a lot more complicated than it seems. As the merchandise has been inevitably subjected to wear and tear, most sellers won’t feel like guaranteeing that it will be perfect.
Reading the terms and conditions you are to abide by before finalizing the purchase becomes vital. Vehicles, for instance, will often only be protected against damage to “lubricated parts” such as the components that make up their engines and accessories. A failing light or braking system are thus not covered and repairing them might end up costing you as much as you paid for the whole car.
As a rule of thumb, only buy used items from someone whom you can trust. You might have to spend a bit more, but you’ll be sure of the quality and durability of what you are acquiring. Referring to specialized shops that deal in antiques or to E-commerce sites such as Ebay or Amazon might also be best, as these usually offer extensive customer protection plans.
A Matter Of Risks And Rewards
Ultimately, purchasing an extension of your warranty or insisting on receiving one is a matter of personal choices.
Just like you’d do with your car or health insurance, you are investing money for a chance to avoid spending more money in the future. The warranty you were so eager to extend might save you from a headache, but there’s also the possibility that your gadget will run as planned for the amount of time the warranty would have covered.
When making a choice to warranty or not to warranty, it is important to take into consideration the following.
1. The initial cost of your item (This will determine the cost of an entire replacement).
2. The parameters of its use (How long do you need or expect it to last? Will it be used rarely or often?).
3. The average cost to fix common problems (For example the amount of things that may break in a car and cost to fix it, is much more expensive and likely than the cost to repair a radio).
As a final piece of advice, all purchases should be carefully considered before you invest your hard-earned savings. Everything made by people will eventually break, and the probability of forking over additional cash for a repair or replacement is assured, it is simply a matter of when. It is important to always carefully consider whether your purchase is necessary, that you have the funds to maintain it and that it is priced right. Remember, the best way to save money is to resist the urge to spend money.