The Truth about Extended Warranties

When “More Coverage” Means Less Protection

In today’s competitive market, warranties are often used as a sales tool rather than a genuine commitment to quality. While extended warranties of two, three, or even five years may sound reassuring, many of them are misleading, unrealistic, and ultimately dishonored. Unfortunately, these practices damage trust and distort the market.

The Illusion of Extended Warranties

Some suppliers advertise long warranty periods despite only receiving 12 months of coverage from the manufacturer themselves, The extra years are not backed by parts, labor, or service agreements. Instead, the supplier relies on carefully written terms and conditions to limit their responsibility.

At first glance, the offer looks generous. In reality, it often provides less protection than a standard manufacturer warranty.

Common Tactics Used to Avoid Warranty Claims

Buyers frequently discover the truth only after a problem occurs. Common tactics include:

• Warranty covering parts only, excluding labor and call-out fees

• Claims rejected as “wear and tear” or “misuse” without technical justification

• Requirements for installation or servicing only by the supplier, not clearly disclosed at purchase

• Long approval processes that delay repairs until the claim becomes impractical

• Responsibility shifted to the manufacturer, even when the warranty was sold by the supplier

These tactics are not designed to protect the equipment — they are designed to protect the supplier from honoring the warranty.

How Dishonest Warranties Harm the Market

When extended warranties are used dishonestly, they create several serious problems:

• Buyers make purchasing decisions based on false security

• Honest suppliers are undercut by unrealistic promises

• Trust in the industry declines

• End users face unexpected repair costs and downtime

Over time, this behavior spoils the market and rewards those who promise the most, not those who deliver the best service.

What a Real Warranty Should Look Like

A genuine warranty is simple, transparent, and enforceable. It should clearly state:

• Who is responsible for the warranty (supplier, not the manufacturer)

• What is covered — parts, labor, and service

• What is excluded, in plain language

• Clear response and repair timelines

• No hidden conditions introduced after the sale

If a warranty requires pages of exclusions to explain why it does not apply, it is not a warranty — it is a disclaimer.

How Buyers Can Protect Themselves

Before purchasing, buyers should:

• Ask who actually pays for repairs after the manufacturer warranty expires

• Request warranty terms in writing before placing an order

• Be cautious of unusually long warranties offered at no extra cost

• Compare warranty quality, not just duration

A shorter, honest warranty is far more valuable than a long one that cannot be enforced.

Raising Standards Through Transparency

Extended warranties are not the problem — dishonesty is. When warranties are clear, backed, and honored, they build trust and long-term relationships. When they are used as a marketing trick, everyone loses.

The industry does not need longer warranties. It needs better ones.