Understanding the Difference Between Extended and Manufacturer Warranties.

• Date: 29 April 2019
• Author: Scott, Tom

* Generally defined, a warranty is a contract between a company and a consumer in which it's agreed that the company will replace or repair a consumer's purchase if it breaks within a specific time period. Structured as such, all warranties basically point toward a similar goal with advantages that vary depending on industry and coverage.

From a consumer products perspective, there are two types of warranties that dominate the industry: manufacturer warranties and extended warranties. Though these warranties differ greatly, each offer substantial benefits for both consumers and retailers.

Manufacturer warranty: automatically included

Otherwise referred to as "limited warranties," manufacturer warranties are automatically bundled with the purchase of a manufacturers product. What makes them "limited?" Manufacturer warranties are only viable for a very specific window of time...