CarMax Warranty Options

Purchasing a used car can be unsettling. Even if the car has a clean vehicle history report and a passing inspection from an independent mechanic, it’s hard to get a complete picture of how it was previously driven or if it will need expensive repairs in the immediate future. One way to gain peace of mind with your used car purchase is with a warranty. CarMax, the largest used car retailer in the country, offers two warranty options with each used car purchase. What are these Carmax warranty options and which is right for you? We’ll break them down to help you decide. 

What is CarMax?

If you’ve shopped for a used car, you’re likely familiar with CarMax from its website or its used car dealerships. The national used car retailer has over 225 retail locations across the United States, and it also allows shoppers to conduct the car buying process completely online. Along with car buying, consumers also have the option of selling a car to Carmax.  The retailer has an inventory of over 50,000 vehicles that are mostly five-years-old or newer, with three-year-old off-lease vehicles comprising the largest share of its inventory. (If you’re considering buying a car from CarMax check out our article CarMax Vs. Carvana which compares the two major used car retailers.)

CarMax Warranty Options: Limited Warranty Vs. Extended Warranty

All CarMax cars are backed by a CarMax Limited Warranty for 4,000 miles or 90 days. When purchasing a CarMax used car, consumers also have the option to purchase the MaxCare extended car warranty that offers added coverage and benefits. We’ll examine the differences between these two options to help you decide if the limited warranty is sufficient or if you should purchase the extended warranty option.

CarMax Limited Warranty

One benefit to being a Carmax customer instead of patronizing a local used car dealership is that each car comes with protection that is provided at no additional cost. The CarMax Limited Warranty lasts for 90 days or 4,000 miles and according to CarMax’s website, and covers a vehicle’s important systems and hundreds of parts. By definition, a limited warranty has exclusions, so be sure to read the warranty terms carefully to understand what exactly is covered. Limited warranties generally include the following covered repairs:

• Mechanical components including engine, transmission, and drivetrain

• Electrical systems including an alternator, lights, and starter

• Climate control 

• Cooling systems

Limited warranties do not cover:

• Cosmetic damage

• Items that are subjected to wear and tear such as wiper blades, tires, and brake pads

• Aftermarket accessories such as custom lifts and stereos

CarMax Extended Warranty: MaxCare

If you are looking for extra protection, you should check out CarMax’s extended warranty, which is also known as a vehicle service contract.  MaxCare, CarMax’s extended warranty program, covers what is included in the limited warranty and extends the coverage period to five years and up to 150,000 miles.

MaxCare must be purchased at the time of your vehicle purchase from CarMax. The cost of this warranty varies depending on the year, make, and model of the vehicle and how much you choose to pay for a deductible. Deductible options include $50, $100, $200, and $300. The higher your deductible, the lower your monthly cost will be. Whatever you choose for a deductible is how much you will owe for each repair that is covered by the warranty.

You can estimate the pricing for your extended warranty via a tool on the CarMax website. We selected a 5-year-old used Jeep Grand Cherokee SUV, estimated our annual mileage between 9,000 to 14,000 miles per year, and chose a $100 deductible. It gave us an estimated monthly payment of $38-41, which could be added to our vehicle’s financing plan. If we selected a $200 deductible, our plan cost would be an estimated $35-37 per month. The extended warranty lasts 60 months, but you can choose the mileage terms. For example, if you drive less than 10,000 miles per year, it would make sense for you to have a 75,000-mile warranty because you would not exceed that mileage over five years. If you are a high-mileage driver who drives over 19,000 miles per year, you should choose the 150,000-mile plan. 

MaxCare is not administered through CarMax directly, but rather from a third-party warranty administrator. The warranty is transferable and can be cancelled at any time.

What Does MaxCare Include?

This CarMax MaxCare extended warranty goes beyond a typical powertrain warranty and covers the following:

• Engine

• Transmission

• Drivetrain

• Cooling system

• Climate control

• Electronics

• Electrical systems

• Steering

• Suspension

In addition to the warranty plan coverage listed above, the CarMax extended warranty includes the following extras:

• Rental reimbursement for up to seven days

• Emergency roadside assistance