Difference Between Guarantee and Warranty

Introduction

When someone tells you they have your favourite movie lined up for viewing or your favourite pie baking in the oven or your favourite song cued for karaoke, they had better be telling the truth. What kind of a cruel trick is it to play when one says something is available and in truth, it isn’t. It is devastating to discover that the movie lined up is a spoof version of the franchise you love; the pie is a minced one and not apple pie; people still think you sing to ‘Hey now, hey now’, a song from your childhood! Even though it is people who have known you for a long time, they cannot be trusted to know what you truly desire.

Be it your best friend, a parent or your closest sibling, their knowledge of your choices is influenced by their own choices too. While it might not be a massive influence, there is a chance that they wanted to watch the horror-comedy movie or eat mince pie or sing that childhood classic that they wrongly declared your favourites. You can’t blame them for their heart being in the right place. That is at least what you will have to tell yourself to keep from yelling at them. Being promised something so good but not having it delivered can be a real bummer.

Guarantee vs Warranty

Such promises or declarations that say one thing but mean another are common in our daily life. When it comes to a transaction, though, they could get the one making the promises in quite a pickle if they fail to deliver. We have often heard the terms guarantee and warranty at the time of purchase. The enthusiastic dealer shakes your hand and broadly smiles, throwing those terms at you, while you assume they mean sweet promises of a long life for your appliance or whatever the product of purchase is. While those terms might sound the same, they mean different things. A guarantee is only a verbal declaration, while a warranty is a more binding written assurance. Let us see how else they differ from each other.

Differences Between Guarantee and Warranty in a Tabular Form

Parameters of Comparison	Guarantee	Warranty
Meaning	A guarantee is an assurance provided by the manufacturer to the customer that if the product of purchase is of a lower quality or doesn’t function as indicated, it can be replaced or refunded.	A warranty is a written assurance provided by the manufacturer that all the specifications and characteristics of the product of purchase are true.
Purpose	A guarantee is usually provided for products that are expected to stay strong and sturdy. These products could also be mechanical but they should have high quality or should be highly engineered. For example, premium pens.	A warranty is usually provided for products that are expected to have frequent breakdowns, for example, a microwave.
Refunds	Refunds are possible when a guarantee is offered. If a refund is not possible, a replacement is given.	There are no refunds when a warranty is given.
Payment	A guarantee is given free of cost. A guarantee can sometimes be given for only certain parts. For the remaining parts, a warranty might have to be given.	A warranty is given free for certain parts. Some parts may be out of warranty. For such parts, payment may have to be made.
Extensions	After a guarantee period, an additional guarantee is rarely offered.	After a warranty period, an additional warranty can be obtained after payment.
Liability	A guarantee covers all the aspects of the product. The manufacturer can replace the whole product. Sometimes the product may also get repaired depending on the terms and conditions.	A warranty has limited liability. The manufacturer will repair or replace only the damaged parts. Consumers have a right to demand that all the parts be changed.
Forms	A guarantee can be either in written form or oral form.	A warranty is always given in the written form. A warranty card is often provided that specifies the date of purchase of the product.
Period	A guarantee is given for a period depending on the type of product. For example – 100% guarantee for 90 days. Such a guarantee includes terms and conditions by the manufacturer.	A warranty is given for a particular period. For example – two years, five years or ten years.
Terms	A guarantee can be applied to both human faults and manufacturing defects.	A warranty is applied only to manufacturing defects.

What is Guarantee?

A guarantee is a commitment or a promise made by the manufacturer to the customer regarding the performance of the product that has been purchased by the customer. It is an assurance of the quality, content and performance of the product. After this promise is made, if the product fails to perform accordingly, the customer can bring the product back to the manufacturer, who will be obliged to either repair or replace the product. If a repair or replacement is not possible, the manufacturer can refund the customer. Although, this privilege can be redeemed only for a certain time.

A guarantee is offered only for a certain period. And this guarantee period acts as a right of the customer. Should a product begin to act faulty within this period, the manufacturer becomes liable to repair or replace the product or refund the customer without an additional charge. A guarantee includes all the parts of the product and is about the manufacturing defects. Usually, while selling a product, a guarantee is implied or verbally addressed by the manufacturer. For some products, though, it can be in a written form.

Advantages of a Guarantee

• Customers can demand a repair or replacement if their product becomes faulty in the guarantee period.
• Customers do not have to pay additional charges for a repair or replacement in the guarantee period.
• Customers can get a refund if the manufacturer cannot repair or replace the product.
• Customers have a right to demand a full refund if it has been specified in a written guarantee card. For example, ‘100% refund assurance’ or ‘no questions – money back guarantee’
• A warranty can be added to a guarantee at an additional cost. If the customer runs out of the guarantee period, a warranty can be purchased, which would give the customer added benefits.

A guarantee is usually for products that have a long life. Companies like Mont Blanc and Cross Pens offer a lifetime guarantee of their products as they are so confident of the quality of the product that a free replacement of the product is offered.

What is Warranty?

A warranty is a commitment of the manufacturer that the specified characters of the product are indeed true. A warranty means that the product is good in quality, performance and durability. Should a product perform unsatisfactorily before the termination of the warranty period, it can be repaired or replaced. The objective of a warranty from the perspective of the company is to build trust for the product and show the customers that they are confident in the performance of the product.

After a product is created, the company conducts multiple tests to figure out the appropriate time frame for a warranty period. The company then accordingly offers a warranty period for the product. A warranty is mostly provided for intangible products or products with a short life.

Advantages of a Warranty

• Customers can have their purchased product replaced or repaired if they find a fault in the product if the damage is within the warranty period.
• Customers need not pay additional charges for the repairs or the replacement of the product.
• Customers can get a product replaced if a repair is not possible. However, if a product has been repaired, a customer cannot demand a replacement.
• A warranty comes with the additional support of the extension. At an additional charge, a warranty period can be extended.
• A warranty card is provided with the product, which serves as evidence for availing of the warranty benefits.

An example of when a warranty is applicable is as follows – a person purchases a refrigerator with a warranty period of a year. If the light stops turning on after two days of purchase, the customer can ask the manufacturer to repair or replace the refrigerator at no additional cost.

An example of when a warranty is not applicable is as follows – if a person purchases an electronic tablet with a warranty period of a year and drops it and breaks the screen six months after purchase, the warranty would not be applicable since the fault is not the manufacturers.

Main Differences Between Guarantee and Warranty In Points

1. A guarantee is an assurance provided by the manufacturer to replace or refund a product that is not of the required quality. A warranty is a written assurance provided by the manufacturer confirming the specifications of the functions of the product.
2. A guarantee is mostly given verbally by the manufacturer but it can also be written. A warranty is always offered in a written form - usually a warranty card. This card can be used as proof to avail of the warranty benefits.
3. A guarantee is given for products that have a long life and are sturdy and robust, while a warranty is given for the products that are expected to have frequent breakdowns.
4. Refunds are possible when a guarantee is offered. In case a refund is not possible, the product is replaced. This is not the case with a warranty. There are no refunds offered when a warranty is given.
5. A guarantee is given free of cost for the product, whereas a warranty is given free of cost for certain parts of the product. For other parts, a warranty might have to be purchased.
6. After a guarantee period has passed, the guarantee cannot be extended, whereas after a warranty period has passed, the warranty can be extended with additional payment.
7. A guarantee is applied to all the parts of the product, while a warranty has limited liability.
8. A guarantee is offered depending on the type of the product, for example, a 100% guarantee for a month. A warranty is offered for a particular period. For example, three years.

Conclusion

A guarantee and a warranty are both kinds of promises or commitments. A guarantee is most times implied than written. It is the assurance provided that the product is of a certain quality. A guarantee is often offered for products that have a robust or sturdy nature. If a product performs unsatisfactorily within the guarantee period, then the manufacturer becomes liable to repair or replace the product at no charge. If a repair or replacement is unavailable, the customer is refunded the original amount.

A warranty, on the other hand, offers no refunds. It is a written commitment of the manufacturer that the specifications of a product about its performance and durability are valid. A warranty is often provided for products that have a shorter life or those that are tangible. Should the product have a fault or perform unsatisfactorily within the warranty period, it can be repaired or replaced at no additional cost. When the warranty period of a product runs out, one can always get an extension of the warranty period at an additional cost. A warranty serves the purpose of assuring the public of the quality of the product. Thus, a manufacturer is liable to honour the assurances they make when they provide a guarantee or a warranty. Whether or not your family keeps their promises might be hard to say. Maybe you could slowly introduce the idea of a warranty card or a guarantee card into the picture just so there is proof of their promise. So, the next time they promise you a pie and give you a mince one instead of an apple, you can demand a replacement. It will be at the risk of a clapback but you will have at least tried.

References

• https://www.marketing91.com/difference-between-warranty-and-guarantee/
• https://www.javatpoint.com/warranty-and-guarantee