Difference Between Warranty and Guarantee (With Table)

We have always come across different products available in the market and when we attempt to buy them, we may receive a certain guarantee for the product beforehand, we also receive a warranty for the same. Warranty and Guarantee are two terms that are often misunderstood by people. Warranty and Guarantee help in protecting consumer rights. To simply put, a Guarantee is a type of assurance given for the customer and a Warranty is a Guarantee in a written format.

Warranty vs Guarantee

The difference between a Warranty and a Guarantee is that a Warranty is a type of assurance made to the consumers during the purchase of goods whereas a Guarantee is a promise made by the sellers. In Warranty, the seller may provide free repair within a stipulated time period. But in a Guarantee, the seller may take responsibility for a product, assuring that the product is of excellent quality and the seller will return the money paid or replace or repair the product if required.

Warranty is assurance made to the product by the seller of goods. Here, the seller gives assurance to repair the product within a given time period. The warranty comes in written format. An individual may receive a warranty card upon purchasing a new product. Here, no replacement of the product is made from the seller’s end.

A guarantee is a promise made for the product in terms of quality, safety, performance, and reliability by the seller. The seller may ensure replacement or provide a refund of the product if the product does not meet the expectations. In terms of promoting the product, the company may appoint a brand ambassador who guarantees the product and encourages the public to buy the same.

Comparison Table Between Warranty and Guarantee

Parameters of ComparisonWarrantyGuarantee
MeaningAssurance is made to customers by the seller or manufacturer. Warranty is more formal when compared to Guarantee.  Commitment or Promise made by the seller to the buyer.  The guarantee is less formal.  
FormatThe warranty often comes in written format. Example: Warranty card. The warranty card contains the date of purchase, duration of the warranty, terms, and conditions as to repairing of the product.    Guarantee often comes in oral form and sometimes as word of mouth. Guarantee also comes in written format.  
CoverageWarranty is covered only for products.    It is covered for products and services.  
ExpenseThe buyer needs to incur expenses for extending the warranty and so on.  The guarantee comes at free of cost.  
Benefits  Repairing of product is possible.Repair or replacement of the product is possible. In some events, even a refund is made possible.

What is a Warranty?

A warranty is an assurance or a breakdown coverage provided by the seller before buying the goods, stating that the product can be repaired within a stipulated time period. The warranty often comes in a written format such as warranty cards which include the date of purchase, the time period, and the terms and conditions relating to the claim of warranty. The warranty comes for the long term as compared to the Guarantee.

The types of Warranty include Implied Warranty and Extended Warranty. Implied Warranty is a presumed assurance, written or orally, that a particular product is implied to perform its role effectively. An extended Warranty is known as a service agreement, which is a prolonged period of warranty offered to the buyers, in addition to the standard warranty. Warranty is also considered a collateral condition. Warranty is often given for products that undergo break down and need examination at given intervals. The warranty comes only for certain parts of the product or machine (example: Refrigerator). A customer has to pay if he/she wants to extend the duration of the warranty.

For example, A customer buys a Refrigerator that comes with a warranty of 6 months. Within three months of usage, the Refrigerator leaks water on the floor. Here, the customer can claim a Warranty for repairing the product by approaching the Service Centre of the refrigerator’s company.

What is a Guarantee?

A guarantee is a commitment or a promise made by the seller of goods to its purchaser for replacement or refund of goods sold. The seller stands as a promiser or like a guarantor. A guarantee is given for a specific period. The manufacturer promises that the product is of at most quality and performance and if it did not meet the buyer’s expectations, the product can be replaced at no minimum cost or even the amount paid can be refunded. For example, a customer buys a vacuum cleaner that sells with a guarantee that money will be refunded fully if the product didn’t satisfy the customer. In this case, the customer can get a refund upon dissatisfaction with the product.

Guarantee often comes as oral and rarely in written format. The formality level is less when it comes to Guarantee. The guarantee protects the rights of the consumer and it holds legal status. Under Guarantee, a customer can demand a full refund if the customer did not find the product to be satisfying. The duration of the Guarantee period can vary from product to product in Guarantee. Guarantee is not necessarily a condition of sale. It is often associated with manufacturing while Warranty revolves around distribution. In short, a Guarantee ensures replacement or refund of the product, and Warranty gives coverage for repairs of the product.

Main Differences Between Warranty and Guarantee

  1. Warranty and Guarantee differ completely in their essential meanings. Warranty is when a seller provides assurances to the customer regarding a product. While Guarantee is a promise made by the sellers to the buyers, about the quality of the product.
  2. Warranty is more professional as it is officially provided by the seller and can be legally binding. Guarantee is more informal as it is a seller’s promise and cannot be legally binding.
  3. Warranty does cover only the products associated with it. But, Guarantee can be applicable to both products and services.
  4. While extending a warranty, the buyer needs to incur the necessary expenses as it is expected to benefit the buyer. Guarantee is provided at free of cost by the seller.
  5. The format of a warranty differs totally, as it is in the form of a written or printed card. The warranty card includes all the details about the provided warranty. But Guarantee is frequently an oral and a word-of-mouth process.

Conclusion

Though the terms Warranty and Guarantee are somewhat similar, they have significant features that make them unique. It is always important to read the conditions prevailing to Guarantee and Warranty as they both protect the rights of the consumer.

A Guarantee is a verbal promise made to the consumer of the goods by the manufacturer or seller as they are very confident about their product in terms of quality, reliability, and performance. On the other hand, a Warranty is written assurance from the sellers’ end as to providing coverage for repairs or fixtures of the product supplied within a stipulated time period.

References

  1. https://doi.org/10.2307/795882
  2. https://doi.org/10.1287/mksc.14.4.442
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