Is a CarMax Warranty Better Than a Certified Pre-Owned Warranty?
- A car warranty ensures that certain repairs, including parts and labor, will be covered for a specific period or mileage.
- CarMax vehicles come with a limited warranty and the option to purchase MaxCare, an extended car warranty.
- Certified pre-owned (CPO) warranties are manufacturer-backed warranties with longer, more comprehensive coverage.
- CarMax limited warranties may be more affordable, but CPO warranties offer longer coverage and higher reliability.
Buying a used car can often feel like a gamble. You may not know the full history or condition of the vehicle, making a reliable warranty even more important for peace of mind.
But as you shop around, certain options may stand out. For example, CarMax warranty coverage provides affordable protection for used vehicles, while a certified pre-owned warranty offers more extensive coverage on cars that have been carefully inspected. Ultimately, consider your priorities, whether it’s affordability or more comprehensive protection, to make the best choice for your needs.
CarMax warranty review
CarMax is a major used car retailer and auto lender with over 240 locations across the U.S., offering a wide selection of vehicles both online and in-store. For every vehicle, CarMax provides a 10-day money-back guarantee and a limited warranty. However, buyers can opt for MaxCare, CarMax’s extended warranty, for added protection. While the limited warranty is free, the CarMax warranty cost depends on the selected plan.
Here’s an overview of CarMax warranty coverage options.
MaxCare
CarMax’s MaxCare is an optional, extended warranty that provides coverage for a variety of important vehicle systems and parts. It protects areas such as the engine, transmission, suspension, drivetrain, electrical systems and more.
In addition, the plan includes 24/7 emergency roadside assistance and offers nationwide coverage in both the U.S. and Canada. Rental car reimbursement is available for up to $40 per day for a maximum of seven days if overnight repairs are necessary. MaxCare also provides discounted deductibles when repairs are done at CarMax Service Centers or RepairPal Certified shops.
What MaxCare doesn’t cover:
- Routine maintenance items, such as batteries, brakes and tires
- Breakdowns resulting from misuse, abuse or overheating
- Damage caused by corrosion, accidents or poor vehicle maintenance
- Aftermarket parts or accessories added after purchasing the vehicle
- Emergency roadside assistance for flat tires — only covers removal or mounting of a spare, not tire replacement
- Emergency roadside assistance fuel delivery — covers delivery, but not the cost of the fuel itself
Limited warranty
Every CarMax vehicle includes a 90-day/4,000-mile limited warranty, even if it’s still under the manufacturer’s warranty. This warranty covers major systems and parts and labor at no extra cost. The coverage includes:
- Brake systems
- Cooling systems
- Differential
- Electrical systems
- Engine
- Exhaust systems
- Fuel systems
- Frame and body
- Gauges
- HVAC
- Restraint systems
- Steering
- Suspension
- Tires
- Transmission and drive shaft
- Wheels
Money-back guarantee
CarMax provides a 10-day money-back guarantee, allowing buyers to return the vehicle if it’s not the right fit. As long as the vehicle is in the same condition as when purchased, you can return it within 10 days for a full refund, minus shipping fees, with the refund processed within two weeks.
CarMax warranty coverage typically ranges from $1,559 to $4,289 and can be included in your monthly payment or paid upfront. Deductibles start at $50, with a maximum deductible of $600. For an accurate estimate, it’s best to contact CarMax directly.
Certified pre-owned warranty: How it works
A certified pre-owned (CPO) vehicle is a used car that’s been inspected, repaired (if necessary) and certified by the manufacturer or a dealership.
With a regular used car, you run the risk of buying a lemon. However, CPO vehicles usually come with a manufacturer’s warranty and meet stricter standards than other used cars. As a result, they often come with a higher price tag and must meet certain requirements on age, mileage and overall condition.
Coverage varies by manufacturer, with each offering different terms and conditions, for example:
- Hyundai: Purchasing a CPO vehicle from Hyundai comes with a warranty that offers powertrain coverage for 10 years/100,000 miles, roadside assistance and rental car reimbursement, with a $50 deductible for each repair service.
- Nissan: Nissan’s CPO warranty coverage lasts for seven years/100,000 miles and comes with prepaid maintenance the first year or 15,000 miles; however, a deductible of $100 per visit may apply.
- Honda: Honda‘s pre-owned limited warranty includes powertrain coverage for seven years/100,000 miles and an additional two years/100,000 miles of coverage for parts unrelated to the powertrain, along with a $0 deductible.
- Kia: Kia offers a 100,000 miles/10 year powertrain limited warranty and 12,000 miles/1 year of platinum coverage for their CPOs.
Which is better: CarMax or certified pre-owned warranty?
A car warranty is great in any capacity — but no two are alike, with some offering better coverage than others. For example, let’s take a look at how CarMax and CPO warranties compare.
CarMax’s limited warranty and CPO warranty are both included in the purchase, but many auto manufacturers offer longer coverage than CarMax’s limited 90-day/4,000 mile plan. In addition, CPOs receive a thorough inspection and reconditioning and are backed by the manufacturer. While CarMax vehicles are inspected, the manufacturer is not involved in the process.
When it comes to price, CPOs are often more expensive than buying an ordinary used car, like the ones sold by CarMax. If you can afford the higher cost, a CPO warranty will cover future repairs for longer. However, you could save money and still find a reliable car by skipping a CPO and purchasing a used car through CarMax, even if you choose to pay extra for a MaxCare extended warranty.
What to ask when choosing a warranty
The warranty impacts your overall ownership costs, so it’s important to understand your potential out-of-pocket expenses. Dealerships are required by law to post the Buyers Guide, which outlines the car’s warranty and protections. However, consider asking these key questions to assess coverage and make an informed decision:
- What is and isn’t covered? Understand which systems and parts are protected so you know what’s included in your warranty. You’ll also want to be aware of exclusions — such as routine maintenance or damage from accidents — to avoid surprises.
- Where can I get repairs? Some warranties require repairs at specific service centers, so this helps you plan where to go for service.
- How long is the warranty coverage valid? Understand the duration of your protection, whether it’s based on time or mileage and what maintenance or actions might invalidate the warranty. In addition, find out if the warranty is transferable in the event you sell the car.
- How much does the warranty cost? What are the costs associated with the warranty, including the price and deductible, and who covers the repair expenses? Be sure to clarify whether the warranty cost is included in the car price and whether you’ll pay upfront for repairs or be reimbursed later.
- What repair costs am I responsible for? Understanding typical out-of-pocket repairs and your share of expenses, including co-pays or uncovered parts, will help you budget accordingly.
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