The market for second-hand/used products is growing rapidly. The buyers are demanding warranties for items purchased from second-hand or used product market. In response to buyer’s demand, public policy makers have begun enacting laws requiring dealers to offer warranties and service warranty claims. Dealers of used products are using warranty to promote sales. Offering warranty results in additional costs associated with warranty servicing. Dealers of second-hand products need to formulate policies and do a proper cost analysis of alternative warranty policies. This section gives an overview of warranty policies for second hand products and the mathematical models, which have been developed for cost estimation of warranties for second-hand products.
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