The Difference Between Warranty and Guarantee

When it comes to parting with your money for a product or service, one of the questions that will probably cross your mind is getting a warranty or guarantee for the product/service you are paying for. This is because if there is a failure in the promises made by the manufacturer or vendor, you can easily return it to be replaced or repaired. 

However, surprisingly or maybe not so surprisingly, the words "Warranty" and "Guarantee" are often used interchangeably because they seem similar. But they are different and this article has been written to explain the significant benefits of each of them and the differences between them.

Before diving straight into the differences, let us define both terms. 

What is a Warranty?

A warranty can be defined as a written assurance or promise by the manufacturer/seller of a product to a customer who is buying the product that all the facts specified about the product are true and authentic. It shows that the product is up to standard in terms of quality, durability, performance, e.t.c. 

In case the product fails to meet the standard, it will be returned back to the manufacturer/seller for it to be repaired or replaced within a specified period of time.

A warranty is not just given on products. When manufacturing companies produce a product, they take the product through several test stages in order to know the durability and lifespan of the product before giving a warranty on it. 

For instance, if after taking the product through several product testing stages and it was discovered that the product can last at least 1-5 years without request for repair or replacement, then the manufacturing company can decide to give a 3 years warranty on that particular product.

There are two types of warranties:

• Implied Warranty: This warranty is the assurance that a product meets the purpose for which it was bought. 
• Express Warranty: This can either be clearly written down or said orally. But it is a guarantee stated by a seller to a buyer promising to provide a replacement or repair for any damaged product within a specified period of time after purchase. These types of warranties are mostly printed on product packages. 

Benefits of Warranty

Here are a few of the numerous benefits of a warranty:

• Customers don't have to incur any extra cost to repair or replace their product if the damage is the manufacturer's fault and not the customer's fault within the warranty specified period.
• It increases customer loyalty and satisfaction.
• It helps protect your reputation and goodwill.

What is a Guarantee?

We can say a guarantee is an advanced level of a warranty. It can be defined as a promise made by a manufacturer or seller of a product to its customer about the quality of a product and if the product fails to meet up with the promises made, the customer can return it for repair or replacement. But in case it can't be repaired or replaced, the money will be refunded.

Just like a warranty, a guarantee is within a specific period of time; it is not available forever. A guarantee protects a customer's interests and rights and helps reduce the risk of making a wrong purchase decision. 

Differences Between Warranty and Guarantee

• A Guarantee is a promise made by the producer of a product to the buyer of the product, while a Warranty is an assurance given to the buyer of a product by the producer.
• A Guarantee is applicable to products, individuals, and services, whereas a Warranty is applicable to products only.
• A Guarantee can either be in a written format or an oral format. And a written Guarantee can be easily proven, unlike an oral guarantee, which can be hard to prove, whereas Warranties are often in written format, which makes it easy to prove.
• A Guarantee is less formal than a Warranty.
• In the case of a Guarantee, the customer can demand a refund if stated by the producer of the product, but in the case of a Warranty, a refund cannot be demanded unless the product is beyond repair and can not be replaced again.
• "Guarantee is free." No cost is attached to it, but on the other hand, the Warranty comes with a little price to be paid for its activation. It's not free.
• A Guarantee is not an important condition of sale, whereas a Warranty is an important condition of sale that can be implied or expressed.
• A Guarantee can be given for both the customer's and the producer's fault, but that is only applicable if specifically stated, Whereas a warranty is only given when the fault is from the producer's end.

Conclusion

Having extensively discussed the differences between Warranty and Guarantee above, we can say warranty and guarantee are similar but not the same. So, it is important to know the differences between them, so you can make an informed decision as a seller or a buyer of a product or service. 

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