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CarMax was founded in 1993 and has grown to be one of the largest used car dealerships in the United States. The company offers a warranty plan which is underwritten by The Warranty Group, the largest underwriter for car warranties in the United States. Details about the cost, the term of the warranty, and corrosion coverage are all undisclosed to the general public but are provided to buyers at the time of purchase.
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The Good

  • Basic warranty features
  • Powertrain warranty
  • Other features
  • Time in business

Basic Warranty Features

CarMax MaxCare covers the vehicle's cooling, electronics and electrical systems, front suspension, steering, front and rear wheel drive, air conditioning system, assemblies and controls and the interior of the vehicle. Excluded are aftermarket accessories (entertainment consoles, GPS, radar detectors, sattellite radio, CB radios) which were installed by the owner after purchase as well as oil change, tune ups, and other maintenance visits. Tires, headlights, interior bulbs, and brakes are not included in the MaxCare warranty.

Powertrain Warranty

MaxCare covers both the car's engine and transmission against defects. There is a deductible for each repair, usually between $50 and $100. Some cars which have been purchased as used vehicles from CarMax may still have their initial manufacturer's powertrain warranty, depending on the age of the vehicle and its milage. MaxCare coverage is supplemental to this warranty and may cover repairs which are not included in the original warranty.

Other Features

MaxCare includes several additional benefits which are designed to decrease the inconvenience when one's car needs repairs. All MaxCare Service Plans include national coverage, so vehicles are covered in all 50 states, no matter where the car was originally purchased.

Should one experience a breakdown and need to be towed, up to $100 of towing expenses is eligible for reimbursement to get the vehicle to an approved service center. Additionally, MaxCare includes car rental reimbursement for up to seven days at $40 per day for repairs which require the vehicle to be in the service center overnight. Courtesy same-day transportation or loaner vehicles are not available.

All used vehicles purchased from CarMax are eligible for coverage. Some vehicles which are purchased from CarMax are covered the original manufacturer's warranty. MaxCare enhances the coverage, rather than replacing it. If accessories or upgrades are purchased with the vehicle from CarMax, these are included in the MaxCare Service Plan.

Should buyers change their mind about MaxCare coverage, they can cancel their coverage and receive a prorated refund for the remainder of their service contract. The company charges a $30 administration fee for all cancellations.

Time in Business

CarMax was originally founded in 1993. While CarMax does not have as many years in business as many car companies, it has grown at an incredible rate and is one of the largest used car sales chains in the United States.

The Bad

  • Warranty costs
  • Basic warranty length
  • What customers are saying

Warranty Costs

The cost for MaxCare is not disclosed by CarMax until after the buyer has expressed interest in a vehicle and been a serious potential buyer. Anecdotal evidence suggests that the average price of the coverage is between $2,000 and $3,000. The service contract can be purchased upfront with a full payment or financed into the loan and paid with monthly installments. Those buying a MaxCare service contract select the cost of their deductible, which, according to anecdotal evidence, varies between $50 and $100. All deductibles are paid per visit, not per repair. Should additional visits to an authorized service center be necessary for the same issue, the deductible is only paid once.

Basic Warranty Length

CarMax does not disclose the lengths of service contracts which are available for MaxCare online. Attempts to receive this information result in company representatives stating that they are not able to give information on the specifics without first completing a sales document. The absence of this information is significant, as it places the buyer in the position of not being able to compare without investing significant time into the car-buying process, and potentially arriving at the last steps of the purchase process before being given this information. Some anecdotal evidence online suggests that the length of the warranty is variable and can be designed according to the customer's wishes, but there is no verifiable information about the term of the warranty from MaxCare.

What Customers Are Saying

There are several customer complaints which have been collected by reputable sources which allege that the underwriter, The Warranty Group, does not cover all repairs which are listed to be covered. Allegations of the underwriter include stating that the repair is not covered because the vehicle had not been properly maintained or that the repair is not in the covered scope of the service plan. While these complaints are generally unverifiable, the frequency that the issues are mentioned is significant. View the Top Car Warranty Companies

The Bottom Line

Many people prefer the peace of mind which comes with an automobile warranty when buying a used vehicle. There are several exclusions to MaxCare's covered repairs, many of which are basic maintenance visits. The lack of transparency is a concern as well; however, for those wanting to purchase a warranty for their CarMax vehicle, MaxCare may be a good option. recommends that users read the contract and understand their coverage thoroughly before purchasing any warranty, from CarMax or any other company.

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January 9th, 2018 Columbus, OH DETAILS

Value for your money
Quality of product or service
Customer Service
Company trustworthiness

CarMax warranty was well presented and covered what I know from my experience as the major issues that come up with out much notice. When compared to the $8. my wife pays in Iphone Insurance on a $700. devise, $28 per month for a $20,000 asset is smart money.



Eric Reyes

December 22nd, 2016

Overall I really believe maxcare has been a lifesaver for me. I have purchased atleast 10 cars from Carmax.Some never needed any major repairs. MOST RECENTLY my 2008 bmw 750i engine seals failed 3 of 4 were approved costing over 3500$. This warranty has paid itself off. I've had other repairs on this car adding up to a minimum of $10,000. Peace of mind is what I purchased and it paid off. Extended warranty for 125,000 miles or 5 year whichever comes first at a cost of $3500 deductible 50$ Free if done at carmax.