16 December 2011

What You Should Know About Warranties

The holiday season you notice your city is flooded with sales. You grab this opportunity on making big purchase. From colorful curtains to refrigerator to plasma television. The moment you leave the store you’re inevitably faced with another option at the checkout: an extended warranty. Many of us ponder on what to buy, whether to purchase a warranty or an extended warranty. Wondering what is the difference between the two. Well, all goods are sold with an independent and standard manufacturer's warranty; this typically only covers particular parts or types of damage for a limited period of time. While an extended warranty can provide long-term peace of mind or provide a gift that is covered against any form of damage, it comes at a considerable cost. This can be as much as 50 percent of the initial purchase cost.

Before you give in to the persuasive deal check out these facts about warranties.

Retailers Love Them

Every single product that comes with a warranty, the retailers earn more profit from warranty contracts on appliances and major electronics than they do on the products themselves. That the reason you notice the sales people persuade you into buy the extra coverage. Did you know that you pay 10 percent to 20 percent more for an item to extend a one-year manufacturer's warranty?  It is very among the retailers to hand off the contract to a third-party administrator in exchange for up to half of what you paid.

Odds Are There But You Won't Need it

You feel the pressure within yourself to take a extended warranty when you make a big purchase like a refrigerator or a dishwasher. But most major appliances do not break down within the extended-warranty period. And even if they do, you can consider getting it repaired because you will notice that the cost of repair roughly equals the cost of the extended warranty.

You May Already be Covered

Now a day’s many credit card companies extend the length of the manufacturer's warranty by up to one year. The manufacturer may provide a free or discounted fix for a defect that doesn't reach the level of a product recall. Consider you purchased a laptop last year and the extended warranty that your credit card offers allows you to make a claim.  As the laptop warranty was for one year, the credit card extended warranty would bring the warranty for the next two years. If you purchased your item with a credit card, your card company may already extend the same coverage provided by the extended warranty. Check with your card company before making a purchase to make sure you don’t pay for coverage twice.

Check the Provider's Track Record

On singing for an extended warranty you have every right to know will provide service and check the provider online. These are a few intricate details that you will need to focus on. You need to check out the facts about the warranty. Read the contract and look for deductibles, limits to the number of covered service calls, exclusions to coverage and triggers for cancellation.

You can Cancel

You can cancel and receive a full refund for the warranty if you return it within the specified number of days. If you cancel after that the administrator may charge you a fee.