Understanding Warranties

After-sales service is a vital part of your computer purchase but home computer warranties tend to have a language of their own.

Warranty Types

Return-to-Base

Bottom of the list is a return-to-base (RTB) warranty. The machine must go back to the manufacturer for repair, and you must arrange and pay for transit. A variation on this type of warranty is return-to-dealer (RTD), used by manufacturers who do not sell direct but through authorized dealers. If you've bought from a local dealer, it may be more convenient to return the machine yourself.

Collect-and-Return

Next up the scale is a collect-and-return (C&R) warranty. In this type of warranty the manufacturer will arrange for a courier to collect the machine, fix the problem, and then return it to you. There is no cost except for the inconvenience of having to stay in for couriers and being without your computer for a while.

On-Site Warranty

An on-site warranty is the best type to have because, if there's a problem, a computer engineer will visit your home to fix it. On-site warranties vary so always check what's included in the cover. Some may only cover hardware problems, and exclude software glitches, while some companies may charge an additional call-out fee if the problems are due to improper configuration or use of software.

Extended Warranties

Deciding whether to have an extended warranty is difficult. The best guideline is to consider how quickly a computer's value depreciates over time. A five-year extended on-site warranty may cost $300 on a $1,000 PC, but you should bear in mind that, due to depreciation, your computer will only be worth around $200 by the fourth year.

Turnaround Time

With all warranties, you should find out if there is a guaranteed time for repairs. Most on-site warranties pledge to have an engineer to your home within two working days, although you can often get a faster service for an additional payment. If the machine has to go back for repair through a C&R or RTB service, most companies will return it within a week or two. However, even the most respectable manufacturers may only guarantee a 28-day turnaround time. Any company that refuses to say how long a repair will take or warns of repairs taking 'up to six weeks' doesn't have the resources to offer a decent service and is probably trying to sell you an extended or on-site warranty.

Assuming a reasonably quick turnaround, a return-to-base warranty is adequate for most home users. However, if you're running a home business, on-site maintenance may be essential. On average, an extension from the standard manufacturer's one-year warranty to three years on-site cover will cost around 20% of the purchase price.