What Is It With An Extended Warranty?

washing machine

When you buy any white goods, or in fact any electrical goods, you will often be asked if you want an extended warranty. Is it worth buying one, what is an extended warranty and more than anything, are they worth it?

If you want to get piece of mind an extended warranty for your electrical goods may be just what you need - right?

Where Do You Get A Warranty?

At a local branch of a well-known electrical goods shop you've identified the right brand and product for you, checked it's in stock and are settling up when the issue of taking out an extended warranty (EW) rears its head. What do you do?

The simple answer emanating from most consumer groups is, "Just say no". And the government tend to agree. The Competition Commission in a report concluded that there is a complex monopoly situation within the EW market, which operates against the public interest.

What's In The Report?

The Commission identified four characteristics :

  • Almost all EWs are bought at point of sale. Few consumers consider EWs prior to their purchase and have little opportunity to consider alternatives in the shop;
  • EWs on offer at point of sale are nearly always from one provider, usually the retailer;
  • There is generally no information available on reliability of electrical goods or likely repair costs;
  • There is generally no information available at point of sale on prices, terms or conditions about EWs from alternative providers

As a result, profits earned by retailers on Extended Warranties are shown to be consistently and substantially above the cost of capital.

What's Going To Change?

In future retailers will have to:

  • Show the price of the extended warranty alongside electrical goods, in store and in their printed advertising material;
  • Provide consumers with information about their statutory rights, cancellation rights and details of the warranty, including whether or not their warranty provides financial protection in the event of insolvency and terminates if a claim is made;
  • Give consumers 45 days to cancel their extended warranty, including issuing a written reminder of this right and the right to cancel at any time and receive a pro-rata refund

Useful Websites

Add Your Site Here
  • Warranty Wise - Open your eyes!
    Comprehensive after-sales insurance for your car, covers all parts and labour, including replacement car and hotel accommodation
  • motoreasy
    Your servicing, breakdown, warranty and MOT costs fixed for a simple monthly payment
  • Network Q
    Nearly new Vauxhall cars, ex-demonstatrors and more, full manufacturer warranty on every car
  • Net Insurance Services
    Independent insurance specialists, offering on screen prices for holiday insurance, travel insurance, self employed liability insurance, warranty insurance and quotes for other types of insurance
  • ScotGold Products
    Manufacture and design of domed bubble labels for PCs, branding equipment, key fobs and promotional giftware, serial labels, warranty stickers, barcode labels, ID badges, mouse mats and personalised p
  • REL Acoustics Subwoofer Resource
    World-renown manufacturer of subwoofer assemblies, providing 3 year world-wide warranty, on-line manuals, home and theatre hi-fi advice and product manuals
  • Add Your Website Here

Further Reading

  • Cheap Household Appliances

    Buying cheap household appliances is a great way to save money, applicances for the home can be very expensive.
  • UK Adults Underestimate Their Calorie Intake

    Research suggests that UK adults do not estimate their calorie intake very well, This may explain why we are becoming bigger as a nation. Here we explore the research and suggest how we can improve this.
  • Are Extended Warranties Worth it?

    Is it worth taking out an extended warranty? They can work out expensive so are they worth it or not?
  • Which Type of Mens Coat Suits You?

    Do you know which type of men’s coat works best for you and your style? Find out with our simple article to help you choose a coat that suits your body.
  • Property Guide

    To buy or let? What type of mortgage is right for you? Check out our guide to all aspects of property.

Register for updates