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The Cost of Warranties
Posted on 11/12/07
P. Klein
With many people buying new electrical items in time for Christmas, Consumer Direct East Midlands is advising people in Loughborough and Charnwood to think carefully before deciding to pay extra for an extended warranty.
Many of us are familiar with the sales pitch when buying electrical goods and millions of extended warranties are sold each year, but Consumer Direct is encouraging people to consider their options and assess the value for money an extended warranty offers when they are shopping in Loughborough or elsewhere.
Also known as service agreements, extended warranties are offered for all kinds of household goods from TVs and DVD players to vacuum cleaners and washing machines. They are sold on the basis that they save the stress and inconvenience of unexpected bills and take away the hassle of finding someone to fix an item. But they can be expensive and increase the cost of your Christmas.
Sara Barry, Consumer Direct East Midlands Manager said: I would urge people to think very carefully about whether they really need to take out an extended warranty when buying new electrical items. Consumers should think realistically about whether the product is likely to break and consider how much it would cost to repair or replace the item before paying extra for a warranty. When you buy domestic electrical goods you already have certain legal rights. If the appliance breaks down within a reasonable period of time, the retailer is obliged to put the problem right by repairing or replacing the product without the need for a warranty.
It may be worth buying an extended warranty if it gives you something over and above these rights, such as accidental damage cover - but you often get this under your home contents insurance anyway. Sara added.
For those people who decide that they want the protection and peace of mind which an extended warranty offers, Consumer Direct East Midlands has this advice:
- you do not have to buy a warranty at the shop where you bought the goods;
- make sure you understand the terms of the agreement and what extra protection the warranty has to offer before deciding to buy;
- dont be rushed into making a decision - retailers must offer the extended warranty on the same terms for 30 days if you choose not to buy it there and then. This includes any discount that was offered;
- retailers have to give you 45 days to cancel the extended warranty, and provide you with a written reminder of this right and the right to cancel at any time and receive a pro-rata refund;
- you can buy warranties that cover a number of appliances, such as all the electrical equipment in your kitchen, so its a good idea to shop around for quotes before signing up to a warranty.
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