What is a Pro Rata Warranty?Updated a year ago

Pro-Rata Warranty

Pro-Rata Warranty is the partial warranty coverage provided on a product when the replacement warranty period expires. The Pro-Rata credit value is calculated based on the remaining time in the Pro-Rata period and a coinciding percentage of the purchase price. 

A 3yr + 2yr Pro-Rata means there is a 3 year (36 months) repair/replacement warranty period, with an additional 2 year (24 months) Pro-Rata warranty period.

 As the total period of cover is 5 years (60 months), a value per month is calculated by dividing the initial purchase price by 60. The value per month is multiplied by the remaining months in the total coverage period to derive the available store credit.

If the product is confirmed to have a defect within the repair/replacement period, it will be repaired, replaced or refunded.

If the product is confirmed to have a defect during the Pro-Rata period, the Pro-Rata value is calculated and provided as a credit towards the purchase of a new product.

Example:

A product is purchased for $549 and confirmed to have a defect after 41 months of use. The product value pr month is calculated as:
- $549 / 60 months = $9.15/month
As there are still 19 months left in the total 60 month period, the Pro-Rata value is calculated as:
- $9.15 x 19 = $173.85
The customer is entitled to $173.85 credit towards the purchase of a product, or as a stand alone store credit.