When buying products like home appliances or electronics, consumers may be offered the option to purchase an extended warranty.
However, these warranties may not always provide extra value, as some protections may already be covered under standard legal and commercial guarantees.
An extended warranty can be defined as prolonged protection beyond the standard guarantee, allowing consumers to claim free repairs for defects.
However, before paying extra money for this additional protection, consumers should carefully review the terms and conditions, as usually these warranties cover only specific mechanical failures while excluding accidental damage or wear and tear.
Consumers should also consider the type of remedies the extended warranty provides.
Does it offer a full replacement with a new product, or only repairs or part replacements? Additionally, for repairs, it is important to check whether labour costs are covered or if separate charges apply. Consumers should also verify if there are any extra costs, such as transport fees or call-out charges, that may be incurred when using the warranty.
Ultimately, it is the consumers’ responsibility to carefully evaluate whether the extended warranty offers real value or if the likelihood of using it is minimal, making it an unnecessary expense.
Compare different brands and sellers to understand the guarantees they offer. A seller’s standard guarantee might include benefits others charge extra for
Consumers should also compare different brands and sellers to understand the guarantees they offer. Some sellers may provide a commercial guarantee of five or even seven years. In certain cases, a seller’s standard guarantee might include benefits that others charge extra for.
Additionally, consumers should be aware that consumer law grants a two-year legal guarantee on goods purchased from traders, covering free repairs or replacements for defective or non-conforming products.
If these remedies are not viable or cause significant inconvenience, consumers may be entitled to a partial or full refund. Keeping these rights in mind can help determine whether an extended warranty truly offers additional value.
Finally, buying an extended warranty is optional and consumers should not feel pressured by sellers.
Before committing, consumers should ensure that all terms and conditions of the extended guarantee are provided in writing. If a trader fails to honour a guarantee, consumers have the right to take action by filing a complaint with the MCCAA’s Office for Consumer Affairs.
Odette Vella is director, Information and Research Directorate, MCCAA.