Buying big items wisely: warranties, extended warranties and refurbished

A laptop, phone or bed is one of the biggest purchases you will make as a student. Knowing what protection you already have, and what is worth paying extra for, stops you being talked into cover you do not need.

Before you buy: a research routine

• Write down what you actually need first: for a study laptop, think battery life, weight, storage and whether your course needs specific software.
• Compare the same model in at least three shops, including the manufacturer's own site, and note the total price with delivery.
• Read reviews from several independent sources, not just the seller's website, and look for repeated complaints about the same fault.
• Check the returns policy and the warranty before paying, and keep the receipt (a photo or the email confirmation works) in a 'Purchases' folder.
• In the UAE, u.ae says businesses must give a dated invoice in Arabic showing the business name, address, the goods, price and quantity. Ask for one and check it is complete.

Your legal rights come first

• In the UK, goods must be of satisfactory quality, fit for purpose and as described under the Consumer Rights Act 2015 (Which?).
• These legal rights exist whether or not you buy a warranty. Citizens Advice says warranties and guarantees 'add to your legal rights', they do not replace them.
• GOV.UK tells businesses that warranties or guarantees do not remove a customer's right to a free repair or replacement.
• In the UAE, u.ae says suppliers must repair or replace defective products without charge, and a law firm summary of the 2023 Executive Regulations says suppliers must give consumers a warranty document (Bracewell).
• Citizens Advice says using your legal rights is often easier than a warranty, especially in the first 6 months.

Extended warranties: are they worth it?

• The US Federal Trade Commission (FTC) says an extended warranty is 'not a good value if it doesn't offer more coverage than the warranty that came with the product'.
• Work out the yearly cost: the FTC suggests dividing the total price by the length of the contract. AED 450 for 3 years is AED 150 a year.
• Check what is covered. The FTC says if something is not listed in the contract, 'assume that it's not covered'. Many plans exclude accidental damage, which is often what students actually need.
• Look for hidden costs: excess or deductible payments, per-repair fees, postage to a repair centre and claim limits (FTC).
• Find out who backs it: the FTC notes the provider may be a company you have never heard of, not the manufacturer.
• The FTC suggests that putting the same money in a savings account may be a better option. Compare with any device cover on your contents or student insurance (see the Money Basics module).

Cancelling an extended warranty (UK example)

• Citizens Advice says you may get a 14-day cooling-off period if you bought the warranty by phone or online.
• For electrical goods, Citizens Advice says you can get a full refund within 45 days if the warranty lasts at least 12 months and was bought with the goods.
• After 45 days you can usually still cancel, but you get only a partial refund, and you cannot cancel once you have made a claim.
• If you were pressured into a warranty at the till, it is worth checking these rules the same week.

Refurbished and second-hand from a business

• Refurbished items can save money, but quality varies between sellers. Buy from the manufacturer's own refurbished store or a well-reviewed retailer, and check the warranty length and the returns policy.
• In the UK, Citizens Advice says your rights for faulty goods apply whether the item is new or second-hand, and Which? notes that cheaper goods are not held to the same standard as luxury ones.
• In the UAE, according to Bracewell's summary of the 2023 Executive Regulations, the condition of used, defective or refurbished goods must be stated on the item, at the shop and on the invoice or contract.
• Before paying, ask: What grade is it? Is the battery new or tested? What is missing from the box? How long is the warranty, and who honours it?
• Test the item before you leave the shop or as soon as it arrives, and report any problem in writing straight away.