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.
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:
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:
CarMax Extended Warranty Benefits:
The most appealing aspect of an extended warranty is peace of mind that you won’t be on the hook for expensive repairs on an older high-mileage car that isn't covered by its factory warranty. You also get to take advantage of perks like towing, rental car reimbursement, and roadside assistance.
CarMax Extended Warranty Limitations:
Most buyers of extended warranties end up spending more on the warranty than what they would spend on repair costs. Or, you could end up paying for the extended warranty, but may require expensive repairs that aren’t covered.
There are more options for extended auto warranties through extended warranty companies outside of CarMax that might offer more coverage and be more cost-effective. Be sure to do your research before purchasing your vehicle to compare all available warranty costs. Check out our guide on Extended Used Car Warranties for more information.
If you’re interested in a new car or a used car, be sure to check out iSeeCars’ award-winning car search engine. It uses advanced algorithms to help shoppers find the best car deals across all used vehicle types and provides key insights and valuable resources, like the iSeeCars VIN check report. Filter by make, model, price, and special features to find the best deal on your next vehicle.