The primary differences between a guarantee and a warranty are:
- Based on meaning
When a manufacturer promises a buyer that if there is any fault in the goods and
services they can be replaced or can be repaired or there would be a refund of
the money which is deposited. That is known as a guarantee.
When there is written assurance about the goods that it is true, but there is
one condition that the product would not be replaced or repaired.
- Based on what it is
A guarantee is a commitment and a warranty is considered as the assurance to the
- Based on applicability
Guarantee applies not only to the product but also to services and warranty
applies only to the product.
- Based on involvement of sale
In guarantee, the sale may or may not be involved. In warranty involvement of
sale is considered as a subsidiary condition which can be either expressed or
- Based on validity
The guarantee can be oral as well as written whereas the warranty is in written
- Based on money back
When a manufacturer gives a guarantee to any product it means a refund can be
done if there is some problem. In the case of a warranty, a refund against the
product is not granted.
- Based on cost
A warranty can be extended by paying an extra amount whereas a Guarantee is free of cost.
- Based on liability
A warranty has limited liability whereas guarantees make sure that it has its
covering on all aspects of the product.
Advantages of Warranty:
- The benefit of getting the product repaired and replace
- No payment for repairing or any services
- Replacement of the product can be done in case the manufacturer fails to repair
- By paying extra amounts warranty period can be extended
- Proof of warranty is given to the customer
Advantages of Guarantee:
- Replacement, repairing or refund options are available to the customer if it's
in the guarantee period
- In the guarantee period, no payment is given for repair or replacement
- In case the product is repaired or replaced then the customer cannot ask for a
- By paying some extra amount guarantee and warranty of a product can be clubbed.
The offer varies from product to product.
At some length guarantee and warranty are the two sides of the same coin as they
both are concerned about the performance of the product, but they both are