Good Afternoon, Readers!
Just so you know, the first of the checklists I promised earlier has officially been posted! The link I attached to this post should take you directly to my first unveiled creation, "Parts Pro Mom's Auto Symptom Checklist". Additionally, I have included it at the top of the list on the "Links of Interest" page.
My long-term plan is to have a separate page for links to the checklists I create to share with my readership base. But. until I have enough to warrant this move (my benchmark for now is at least two or three), you can find them on the Links of Interest page.
I'm always open to suggestions, so if you have any ideas you'd like to see incorporated here let me know. The comment floor is always open!
PPM
22 November 2011
19 November 2011
Clearing the Proverbial Air on Pro-Rated Warranties
Hello, Readers.
[This is another post that I started during the early part of my healing process, but have only now been able to complete. I originally began this post on 10.30.11, in the hopes I could completely write it up in short bursts within a few hours' time. Things didn't go according to plan, but I didn't give up. While I am on a roll, I'm posting this one now, tonight (on 11.19.11).]
Today, I want to demystify the 'pro-rated warranties' that apply to certain parts (think automotive tires and batteries). Have you ever wondered what that was all about, exactly how it worked? Let me shed some light on that subject for you.
We have already discussed that warranties exist for some items - both inside and outside the automotive industry. The next trick to the warranty process, is knowing what kind of warranty there is. Certain items - I will discuss tires and batteries as the examples here - involve a 'pro-rated' warranty. [As a side note to any Dave Ramsey/FPU fans: yes, this is along similar lines as the 'pro-rata' payment division used in the bankruptcy court repayment calculations.]
Just so you know, 'pro-rata' (the root term for 'pro-rated') is one of those Latin-based phrases, and it translates 'per-share' or 'proportionately'. When a warranty is said to be 'pro-rated', basically it means that the credit you receive is reduced 'proportionately' for the amount of use you did get out of it. If you return an item under warranty purposes - and wish to receive a refund in lieu of a replacement item - the receipt will show the item's full value as a refund, followed by a 'charge-back' for a certain amount (per month, per mile, etc) multiplied by the number of (months, miles, etc) you used it. The difference between the two is what your net refund would be.
Let's say you'd rather have a replacement item. You do still need a properly working (fill-in-the-blank-part) after all! In that case, the receipt would show the item's full value as a refund (for the return), followed by the item's full value as a charge (for the new sale), then finally the 'charge-back' outlined in the above scenario. The first two line items cancel each other out for a 'net-zero' invoice; the 'charge-back' is the part where you pay for the use you did get.
Is this still a tad confusing? Let's see if giving a few examples help us out.
Example 1:
You buy a set of 4 tires with a 65,000 mile warranty at Acme Tire Company. They cost you $150 per tire, plus taxes and fees (road hazard protection, old tire disposal, etc.). For some reason - and not from doing burn-outs or other such abuse - one or two (or more) of your tires fail after 15,000 miles of use. So, when you return to get the defective tire(s) replaced, Acme will put the new one(s) on for you. When you get checked out, you will be charged $34.62 per tire (plus tax, and any potential fees). Here's the math: 15,000/65,000 = 23.08% usage before failure. $150 * 0.2308 = $34.62. [Unless something changes in the near future, tire warranties have no free replacement period at all.]
Example 2:
You need a battery for your vehicle, but do not intend to keep it for more than another year. Of the options presented, you choose to purchase the battery that has a 60 month pro-rated/12 month free replacement warranty. Life happens, and you wind up still driving the thing 25 months later when the battery goes out again. When you get it replaced, you will pay for 25 months of use before failure; this will be charged at a flat monthly rate, not as a percentage of months used. You replace it with an identical battery, so that is all you owe (besides tax and any fees).
NOTE: Pro-rated battery warranties generally lose the last of their credit value somewhere between 1/2 and 2/3 of lifetime use. So, in the above example, you would start paying full price for a replacement battery somewhere between the 30th and 40th month of use.
Example 3:
Same situation as Example 2. Only this time, you decide that you deserve to upgrade to a battery with a longer warranty (and some more power, as well). The invoice you receive will show: 1. the sale (charge) of the better battery at full price; 2. the return (credit) for the full price of the defective, shorter-warranty battery; 3. the charge of 25-times the monthly usage rate for the period of good use you did receive. The net balance after all this is done is what you owe to get the upgraded battery. It may seem like you are paying a lot of money, but compare the bill to the original full-price of the better battery with tax, etc. You will see how much of a discount you truly did receive.
I certainly hope this article and the examples I have cleared up this foggy matter for you. If you wind up facing a pro-rated warranty situation not covered here, please contact me. It will be my pleasure to walk through it with you and make sure what is going on makes sense.
Until next time, remember to be an informed consumer.
PPM
[This is another post that I started during the early part of my healing process, but have only now been able to complete. I originally began this post on 10.30.11, in the hopes I could completely write it up in short bursts within a few hours' time. Things didn't go according to plan, but I didn't give up. While I am on a roll, I'm posting this one now, tonight (on 11.19.11).]
Today, I want to demystify the 'pro-rated warranties' that apply to certain parts (think automotive tires and batteries). Have you ever wondered what that was all about, exactly how it worked? Let me shed some light on that subject for you.
We have already discussed that warranties exist for some items - both inside and outside the automotive industry. The next trick to the warranty process, is knowing what kind of warranty there is. Certain items - I will discuss tires and batteries as the examples here - involve a 'pro-rated' warranty. [As a side note to any Dave Ramsey/FPU fans: yes, this is along similar lines as the 'pro-rata' payment division used in the bankruptcy court repayment calculations.]
Just so you know, 'pro-rata' (the root term for 'pro-rated') is one of those Latin-based phrases, and it translates 'per-share' or 'proportionately'. When a warranty is said to be 'pro-rated', basically it means that the credit you receive is reduced 'proportionately' for the amount of use you did get out of it. If you return an item under warranty purposes - and wish to receive a refund in lieu of a replacement item - the receipt will show the item's full value as a refund, followed by a 'charge-back' for a certain amount (per month, per mile, etc) multiplied by the number of (months, miles, etc) you used it. The difference between the two is what your net refund would be.
Let's say you'd rather have a replacement item. You do still need a properly working (fill-in-the-blank-part) after all! In that case, the receipt would show the item's full value as a refund (for the return), followed by the item's full value as a charge (for the new sale), then finally the 'charge-back' outlined in the above scenario. The first two line items cancel each other out for a 'net-zero' invoice; the 'charge-back' is the part where you pay for the use you did get.
Is this still a tad confusing? Let's see if giving a few examples help us out.
Example 1:
You buy a set of 4 tires with a 65,000 mile warranty at Acme Tire Company. They cost you $150 per tire, plus taxes and fees (road hazard protection, old tire disposal, etc.). For some reason - and not from doing burn-outs or other such abuse - one or two (or more) of your tires fail after 15,000 miles of use. So, when you return to get the defective tire(s) replaced, Acme will put the new one(s) on for you. When you get checked out, you will be charged $34.62 per tire (plus tax, and any potential fees). Here's the math: 15,000/65,000 = 23.08% usage before failure. $150 * 0.2308 = $34.62. [Unless something changes in the near future, tire warranties have no free replacement period at all.]
Example 2:
You need a battery for your vehicle, but do not intend to keep it for more than another year. Of the options presented, you choose to purchase the battery that has a 60 month pro-rated/12 month free replacement warranty. Life happens, and you wind up still driving the thing 25 months later when the battery goes out again. When you get it replaced, you will pay for 25 months of use before failure; this will be charged at a flat monthly rate, not as a percentage of months used. You replace it with an identical battery, so that is all you owe (besides tax and any fees).
NOTE: Pro-rated battery warranties generally lose the last of their credit value somewhere between 1/2 and 2/3 of lifetime use. So, in the above example, you would start paying full price for a replacement battery somewhere between the 30th and 40th month of use.
Example 3:
Same situation as Example 2. Only this time, you decide that you deserve to upgrade to a battery with a longer warranty (and some more power, as well). The invoice you receive will show: 1. the sale (charge) of the better battery at full price; 2. the return (credit) for the full price of the defective, shorter-warranty battery; 3. the charge of 25-times the monthly usage rate for the period of good use you did receive. The net balance after all this is done is what you owe to get the upgraded battery. It may seem like you are paying a lot of money, but compare the bill to the original full-price of the better battery with tax, etc. You will see how much of a discount you truly did receive.
I certainly hope this article and the examples I have cleared up this foggy matter for you. If you wind up facing a pro-rated warranty situation not covered here, please contact me. It will be my pleasure to walk through it with you and make sure what is going on makes sense.
Until next time, remember to be an informed consumer.
PPM
18 November 2011
Warranty Enforcement 101
[Disclosure: I originally started this on 10.1.11, but I was still recovering from being rear-ended on 9.28.11. It took me until today, 11.18.11, to finish that and post it.]
Greetings, fair Readers!
There seems to be a *lot* of people out there who don't fully understand the warranty-return process. Based solely on all the ones I have encountered over the years (and recently), I thought it prudent to take this opportunity to clarify the matter. Even if you are pretty confident that you know this topic inside-out, please humor me by reading through this anyway. If it turns out you were already 100% right, then you can use this blog as black-and-white-proof to show others who may doubt your wisdom.
By now, I am sure that most of you have probably purchased at least one item (car, home appliance, the latest techno-gadget...) where there was a "manufacturer's warranty" offered. The usual language in these warranties is something to the effect of, "warranted to be free of defects in material and workmanship (or craftsmanship), to the original purchaser". There are usually legal disclaimers of the warranty being void under certain conditions (misuse, abuse, neglect, modification, etc).
Most importantly, the warranty language always requires 'proof of purchase' (or 'proof of ownership'), to prove the "original purchaser" is the one making the defect claim. What exactly is this 'proof of purchase/ownership'? Your receipt! (In the case of vehicles, the title would be your proof - naturally. But, check on the warranty language in those cases. Some manufacturers may allow a one-time transfer of warranty coverage from initial owner to second owner. Get any promises of such in writing from the company that owns your vehicle's brand.)
All too often, I get a customer in my store who expects an alleged-defective part to be replaced...but he/she doesn't have a receipt, nor a package with the part number on it. He/she assumes we will just 'look [him/her] up in the computer', but that is simply not the case. I know those inferior parts stores have pretty much always logged customer information into their sales system. BUT, that will only help you as long as you stay locally all your life. What if you move to another town, state, or even region? The inferior chain store near your new home might not have access to 'your information', since even national chains are limited in their internal file-sharing. I submit, the era of 'personal responsibility' is long overdue to return!
Protect your warranty rights - and allow the store/manufacturer to help you - by doing the following.
1. Give yourself an attitude check. Angry? Understandable. Belligerence is not!
Any decent customer service employee will understand if you are frustrated and/or upset because of the failed product. However, if you start acting like you are 'entitled' to this and/or that (especially if you don't have your receipt) or become hostile with the employee for inappropriate reasons, don't be surprised if you are not only denied the warranty, but kicked out of the store. Respect must be shown by *all* parties, including you, the customer!
2. Know before you go: Store Hours and Warranty/Return Policy.
Of course, even the most calm-cool-collected person can get irritated when he/she gets to a store for a return, only to realize the business day is over. To save your sanity, always call the store *first* in order to verify what the business hours are. If it has been a while since your last visit, confirm their location (address) as well. Before you hang up, ask them what the return policy is, especially for warranty situations. Most likely, you will need to bring the 'alleged defective' product and your copy of the receipt from when you purchased it.
3. Protect Yourself: Keep your receipt legible and safe!
I'll bet you are wondering, "How are you supposed to preserve receipts, when they fade and degrade so easily?" And I have a simple solution, which involves 'basic' office supplies: Get a binder (1" size should be fine), some clear page protectors, and a Sharpie. With the Sharpie, write the year/make/model and color of the vehicle on the short filing edge of the binder. Write the same info on the front cover, including the full VIN (alternatively, you could type this up as a cover page to place there). Fill the rings with the page protectors. Then file all your receipts for this car in these page protectors. You might even consider making photocopies of your receipts before filing. [Most parts stores will happily accept a good photocopy of the original invoice, just as if you had supplied the original.]
And there you have it: an overview of how warranties work and how you can arm yourself to reap the benefits. I pray that you do not find yourself in the position of needing this article for reference anytime soon, unless it for the record-keeping tip. But, if you do wind up having a warranty replacement situation in the near future, please consider the above advice. In heeding it, you will have a far smoother, calmer, and quicker transaction, allowing you to move on with your life that much sooner. Wouldn't that be nice?
Until next time, remember to take care of your auto, so it can help take care of you.
PPM
Greetings, fair Readers!
There seems to be a *lot* of people out there who don't fully understand the warranty-return process. Based solely on all the ones I have encountered over the years (and recently), I thought it prudent to take this opportunity to clarify the matter. Even if you are pretty confident that you know this topic inside-out, please humor me by reading through this anyway. If it turns out you were already 100% right, then you can use this blog as black-and-white-proof to show others who may doubt your wisdom.
By now, I am sure that most of you have probably purchased at least one item (car, home appliance, the latest techno-gadget...) where there was a "manufacturer's warranty" offered. The usual language in these warranties is something to the effect of, "warranted to be free of defects in material and workmanship (or craftsmanship), to the original purchaser". There are usually legal disclaimers of the warranty being void under certain conditions (misuse, abuse, neglect, modification, etc).
Most importantly, the warranty language always requires 'proof of purchase' (or 'proof of ownership'), to prove the "original purchaser" is the one making the defect claim. What exactly is this 'proof of purchase/ownership'? Your receipt! (In the case of vehicles, the title would be your proof - naturally. But, check on the warranty language in those cases. Some manufacturers may allow a one-time transfer of warranty coverage from initial owner to second owner. Get any promises of such in writing from the company that owns your vehicle's brand.)
All too often, I get a customer in my store who expects an alleged-defective part to be replaced...but he/she doesn't have a receipt, nor a package with the part number on it. He/she assumes we will just 'look [him/her] up in the computer', but that is simply not the case. I know those inferior parts stores have pretty much always logged customer information into their sales system. BUT, that will only help you as long as you stay locally all your life. What if you move to another town, state, or even region? The inferior chain store near your new home might not have access to 'your information', since even national chains are limited in their internal file-sharing. I submit, the era of 'personal responsibility' is long overdue to return!
Protect your warranty rights - and allow the store/manufacturer to help you - by doing the following.
1. Give yourself an attitude check. Angry? Understandable. Belligerence is not!
Any decent customer service employee will understand if you are frustrated and/or upset because of the failed product. However, if you start acting like you are 'entitled' to this and/or that (especially if you don't have your receipt) or become hostile with the employee for inappropriate reasons, don't be surprised if you are not only denied the warranty, but kicked out of the store. Respect must be shown by *all* parties, including you, the customer!
2. Know before you go: Store Hours and Warranty/Return Policy.
Of course, even the most calm-cool-collected person can get irritated when he/she gets to a store for a return, only to realize the business day is over. To save your sanity, always call the store *first* in order to verify what the business hours are. If it has been a while since your last visit, confirm their location (address) as well. Before you hang up, ask them what the return policy is, especially for warranty situations. Most likely, you will need to bring the 'alleged defective' product and your copy of the receipt from when you purchased it.
3. Protect Yourself: Keep your receipt legible and safe!
I'll bet you are wondering, "How are you supposed to preserve receipts, when they fade and degrade so easily?" And I have a simple solution, which involves 'basic' office supplies: Get a binder (1" size should be fine), some clear page protectors, and a Sharpie. With the Sharpie, write the year/make/model and color of the vehicle on the short filing edge of the binder. Write the same info on the front cover, including the full VIN (alternatively, you could type this up as a cover page to place there). Fill the rings with the page protectors. Then file all your receipts for this car in these page protectors. You might even consider making photocopies of your receipts before filing. [Most parts stores will happily accept a good photocopy of the original invoice, just as if you had supplied the original.]
And there you have it: an overview of how warranties work and how you can arm yourself to reap the benefits. I pray that you do not find yourself in the position of needing this article for reference anytime soon, unless it for the record-keeping tip. But, if you do wind up having a warranty replacement situation in the near future, please consider the above advice. In heeding it, you will have a far smoother, calmer, and quicker transaction, allowing you to move on with your life that much sooner. Wouldn't that be nice?
Until next time, remember to take care of your auto, so it can help take care of you.
PPM
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