Don't waste your money on extended warranties
About seven out of 10 shoppers are being offered an extended warranty at Apple Stores, Harvey Norman and Noel Leeming.
While extended warranties promise to pay for repairs for a specified period after the manufacturer’s warranty has expired, you’re likely paying hundreds of dollars for protection you already have under consumer law.
Our latest retailer survey found that three big retailers – Harvey Norman, Noel Leeming and Apple Stores – were the most likely to offer an extended warranty.
Only 2 to 3% of shoppers at the three big retailers were told by store staff what protection they already have under consumer law.
The more expensive the item, the more people were offered a warranty. This is especially so for large appliances (54%) and home tech (50%) purchases across all retailers surveyed.
Extended warranties may also be marketed as product care or damage protection plans.
We were happy to see only 3% of people who were offered an extended warranty went ahead with buying one. Although, we suspect this is because we surveyed our members and supporters, and they’re likely to be more clued up on their rights.
You’re already covered
===================
Under the Consumer Guarantees Act (CGA), manufacturers and retailers are obliged to guarantee the products they sell are of an acceptable quality and fit for their purpose. Most appliances, certainly the big-ticket ones, can be expected to perform well for many years, not just the period covered by the manufacturer’s warranty.
This means that if your product develops a fault when it’s still reasonably new, you can have it repaired or, if that isn’t possible, replaced – even if the manufacturer’s warranty has expired.
If the fault is substantial, you can choose between a refund, repair or replacement.
Therefore, there’s no value in having an extended warranty if the only thing it gives you is cover beyond the period of the manufacturer’s warranty.
The extended warranty may cover accidental damage, but so does your home and contents policy – for example, your contents insurance should cover damage to computers and electronic appliances from power surges.
When is an extended warranty a good idea?
===================================
An extended warranty is worth considering if it goes beyond the protections provided by the CGA. An example would be if a warranty guarantees replacement with a new item if something goes wrong, rather than having to wait for repairs.
When selling you an extended warranty, the retailer should tell you the extra rights it gives you on top of the CGA.
And remember, the CGA doesn’t apply to goods normally used for business purposes. So, if you’re buying items for business use, extended warranties may give you protection you don’t automatically have by law.
=====================================================
Poll: Should we be giving the green light to new mining projects? 💰🌲
The Environmental Protection Authority announced this week that a proposed mine in Central Otago (near Cromwell) is about to enter its fast-track assessment process. A final decision could come within six months, and if it’s approved, construction might start as early as mid-2026.
We want to know: Should mining projects like this move ahead?
Keen to dig deeper? Mike White has the scoop.
-
53.1% Yes
-
46.9% No
Aucklanders, we want to know: How are you feeling about the current property market?
New Zealand homeowners are now more likely to sell at a loss than at any time since 2013, and if you’re in Auckland or Wellington, the odds are even higher.
But there is a silver lining: buyers are still in a strong position when it comes to negotiating prices.
So we’re curious…
How are you feeling about the current property market?
If you’re keen to dive into the details, Deborah Morris breaks down all the latest insights.
‘Tis the season to not get scammed ...
As Christmas gift shopping moves increasingly online, scammers are ramping up their activity across the country.
Dunedin’s Investigation Support Unit is seeing more and more people fall victim to scams and other fraudulent activity, particularly on Facebook Marketplace.
There are a few ways to avoid the scams and keep yourself safe doing online trades this holiday season, says Southern District Service Delivery Manager Senior Sergeant Dalton.
🔒 “A good first step when looking to purchase something on Marketplace is to check when the seller’s Facebook profile was created. If it’s very recent, there is a higher risk that they have just created this account for a one-off fake item.”
🔒 Another important step is to make sure the seller’s profile name and bank account name match up. “We’re seeing a lot of scammers claiming their bank account name is different because it belongs to their partner or family member - that’s a huge red flag."
🔒 “When you’re selling, never trust a screenshot anyone sends you showing that payment has been made. Check your own bank account to make sure a payment has gone through."
🔒 “Quite frankly, it’s best for all parties to agree to pay, or be paid, for items in cash and in-person. Ideally in a public place with CCTV coverage."
🔒 "If you’re buying a car, check Carjam.co.nz to see if it’s stolen or if there’s money owed on it.”
A reminder: Suspicious activity can be reported on 105
Loading…
