When it comes to purchasing products, or services, warranty and guarantee are the few things that come across our minds. The warranty and guarantee seem similar; however, there are differences between them. There are certain advantages of both warranty and guarantee, and it is the consumer’s right to ensure whether the products or services they are purchasing fall under any of these.
In this article, we are discussing the significant differences between the warranty and the guarantee, which helps decide which one is more beneficial. This will also avoid the chances of getting cheated by the manufacturers. Let’s first understand both with the definitions:
What is the warranty?
Warranty is defined as the manufacturer’s written assurance to the customer who is buying the product, stating that all the product specifications and facts are true. That means the product is well built in terms of quality, fitness, performance, durability, etc. In case these facts don’t satisfy, the product will be repaired or replaced if necessary, within a specified warranty period. Companies provide warranty to build trust for the product, showing consumers that the company is confident about its quality.
After manufacturing products, companies run several tests to decide a proper time frame for the warranty. Once companies ensure that the manufactured products can last at least 1-2 years and so on without any service requirement, they are more likely to give warranty on such products for a limited time frame accordingly. Warranty is mostly given with tangible objects like electronic equipment and machines, etc.
There are two types of warranty, namely ‘express’ and ‘implied’.
Few advantages of having a warranty are listed below:
- Consumers will have the option to get their products repaired/ replaced if there are any manufacturer defects within the warranty period.
- Consumers don’t have to pay for the repairs or services when the product lies within the warranty period.
- Consumers can get a replacement for the product only if the manufacturer cannot repair the product. However, consumers don’t have the right to ask for a replacement when the product is repaired.
- The warranty comes with additional support, and so consumers can avail extra warranty period by paying additional amounts.
- A warranty card is given with a product, which acts as proof while availing the warranty benefits.
What is a Guarantee?
The guarantee is an advanced version of the warranty where the manufacturer is more confident about its quality. The guarantee is defined as the commitment made by the manufacturer to the buyer that states if the product is of low quality or does not satisfy the specifications and facts promised, then the product will be repaired, replaced or refunded. Unlike Warranty, guarantee comes with an assurance that if a product cannot be repaired and there is no product to be replaced, then the money paid by the buyer will be refunded.
Like a Warranty, the guarantee is also given for a specific period. However, it acts as the right of the consumer. The guarantee includes all the aspects of the product and is related to the manufacturer defects. The manufacturer guarantees repair/replacement of the entire product with a new one without asking for additional charges. In most cases, the guarantee is usually implied; however, it can be given in a written form for particular products. The contract of implied guarantee is tough to prove.
Few advantages of having a guarantee are listed below:
- Consumers will have the option to get their products repaired/ replaced/ refunded if there are any manufacturer defects during the guarantee period.
- Consumers don’t have to pay for the repairs or services until the product is covered under the guarantee period.
- Consumers can also get a refund for the product only if the manufacturer cannot repair/ replace it. However, consumers don’t have the right to ask for a refund when the product is repaired or replaced.
- Consumers have the right to ask for a full refund if it is specifically written in a guarantee card, e.g., ‘no question money-back guarantee’, ‘100% refund assurance’, etc.
- The guarantee can be clubbed with the warranty by paying the extra amount of extended warranty. Once the guarantee period is complete, consumers can get the benefits of the warranty. However, this option may vary from product to product.
Key Differences between Warranty and Guarantee
Few key differences between Warranty and Guarantee are listed below:
- The warranty assures the customer that the product’s specifications are true and comply with all such specs genuinely. In case the product doesn’t meet the specs or has any manufacturer defect, it will only be repaired or replaced. There will be no refund for that specific product. Besides, the guarantee is a kind of promise made by the manufacturer to the customer who purchases products. In case the product does not meet the expectations, it will be repaired, replaced, or the money will be refunded.
- The warranty includes only products, whereas the guarantee includes products, services, persons and their satisfaction.
- Customers don’t have to pay for the guarantee. But the warranty is not free of cost, and customers will have to pay for the warranty. For example, most laptops come with an option to add an extended warranty by paying an additional amount. This warranty gets applied after the guarantee period is over.
- Guarantees can be given to the customer in written or verbal formats, where it is too tough to prove verbal guarantees. On the other side, the warranty is usually given in the written formats by the authorized manufacturer or partnered vendors, and so it is easy to prove.
- In case of a guarantee, customers can raise complaints to get their money back if they are not satisfied with the product or have issues. However, this is not possible in the warranty. Warranty does not cover money-back assurance unless the manufacturer is unable to repair and replace the product.
- Warranty is a contributory condition of sale, which can be expressed or implied. Besides, the guarantee may or may not be a sale condition.
- A guarantee is usually considered less formal as compared to a warranty.
Major Differences between Warranty and Guarantee
The other major differences between a warranty and a guarantee can be explained in a tabulated form, as below:
|Meaning||Warranty is a written assurance, which states that the given information regarding the product is true and accurate. If there is an issue, the product will be repaired or replaced by the manufacturer.||The guarantee is a commitment provided by the manufacturer to the consumers. In case of guarantee, if the product does not meet the specification or expectations, it will be repaired, replaced, or the money will be refunded.|
|Money-Back (Refund)||Refunds are not issued in case of a warranty.||Refunds can be issued in case of a guarantee only if stated specifically. Otherwise, a replacement will be given.|
|Applicable to||Warranty is usually given with the products and services.||The guarantee is only given with the products.|
|Form||Warranty is always given in a written form, and a warranty card is provided with the product. The warranty card is used to confirm the date of purchase of the product.||The guarantee can be in a written form or implied. If the guarantee is given in the oral form, then it hard to prove.|
|Condition of Sale||Warranty is a subsidiary condition of sale that comes with the product as either expressed or implied.||Guarantee may or may not be a condition of sale. The guarantee is given with limited types of products.|
|Cost||Most products come with a limited warranty, and consumers don’t need to pay extra within that certain period. However, the additional warranty can only be taken by paying extra amounts.||The guarantee is provided free of cost, and it is limited to certain terms and conditions. Only limited types of products come with a guarantee.|
|Liability||It has limited liability. The manufacturer will only repair or replace the defective parts of the product. Consumers have to right to ask for changing all the parts.||It covers all the aspects of the product. The manufacturer may replace the entire product and save the user’s time. The product may also get repaired according to the specified terms and conditions.|
|Terms||Warranty is given when there are manufacturer defects in the product.||The guarantee can be given for both the manufacturer defects and human faults. However, it is only applicable if stated specifically.|
|Time-Period||It is usually given for a particular period-for example- two years, five years, ten years, etc.||Depending on the type of product, it can be given in different ways with a limited period -for example, 100% guarantee within 90 days, 100% money-back guarantee within 30 days, premium quality guarantee, etc. These guarantee options include specific terms and conditions by the manufacturer.|
|Additional Support||Warranty can be extended by paying some additional amount. For example, most laptops come with a one-year limited warranty; however, the warranty can be extended by paying extra money.||A guarantee is not usually given as extended support. It is very rare to get an additional guarantee. However, the guarantee can be clubbed with the warranty with additional payment. After the guarantee period is over, consumers can benefit from the warranty.|
How does a warranty or guarantee work?
Suppose we purchase a smart TV that comes included with a one-year warranty. After a few days of purchase, it starts behaving weirdly like some of its functions start working automatically. The sound might automatically go up or down even when you are not even holding a remote. As the product is covered under one year of warranty, and we have just used the product only for a few days, we can take the product to the authorized service center for repair. Because the fault is a type of technical error, they will repair the product without asking for extra charges.