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4.6

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LAST UPDATED: August 17th, 2023

CarMax is a well-known car retailer that also offers different car warranty plans. It was founded in 1993 and has grown to be one of the largest used car dealerships in the United States. Buyers can be confident in when car buying from any CarMax dealer because all of its certified pre-owned vehicles come with a vehicle history and safety report.

CarMax dealerships have many different kinds of used cars for sale, from commuter cars to trucks and cars with low and high mileage. Certain vehicles may have unrepaired safety recalls, but consumers can find that information before ever stepping foot in the dealership and taking a test drive.

CarMax offers its signature extended auto warranties that can be purchased for any of the vehicles it sells. There are two kinds of MaxCare extended service plans. These options allow car owners some choice when finding a plan with good coverage that fits into their budget.

 

Car buyers can purchase a CarMax limited warranty with a 5-day money-back guarantee or an extended auto warranty plan which is underwritten by The Warranty Group, the largest underwriter for car warranties in the United States.

Details about the cost, the terms of the warranty, and corrosion coverage are not disclosed to the general public but are provided to each car buyer at the time of purchase. Potential clients should carefully read the provided vehicle service contract and consider cost, exclusions, and coverage information to determine if a CarMax warranty is a good deal for them.

Warranty cost, availability, and eligibility vary based on the car's make, model, and mileage, and the buyer's location. However, a CarMax extended warranty is available on all of the certified pre-owned vehicles the company sells. Working with a CarMax representative can help you understand details about coverage and what the monthly payment looks like or what you would pay if you purchased it all upfront.

A CarMax extended warranty also includes 24/7 roadside assistance and rental car reimbursement.

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The Good

  • Basic Warranty Features
  • Powertrain Warranty
  • Other Features
  • Time in Business

Basic Warranty Features

CarMax MaxCare extended warranty covers the pre-owned car's cooling, electronics and electrical systems, front suspension, steering, front and rear wheel drive (all-wheel drive), air conditioning system, assemblies and controls and the interior of the vehicle.

Excluded are aftermarket accessories (entertainment consoles, GPS, radar detectors, satellite 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 extended warranty.

Powertrain Warranty

The MaxCare auto warranty covers both the car's engine and transmission against defects. There is a deductible for each repair, usually between $50 and $100.

Some pre-owned cars may still have its initial manufacturer's powertrain warranty, depending on the age of the vehicle and its mileage. CarMax MaxCare coverage is supplemental to any to this warranty and may cover repairs which are not included in the original warranty.

Other Features

CarMax MaxCare, an optional add-on feature to any extended warranty, which includes several benefits that are designed to decrease the inconvenience when one's car needs repairs.

All CarMax MaxCare service plans include nationwide coverage, which ensure that cars 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 or service department for any necessary repair.

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 or repair shop overnight.

Courtesy same-day transportation or a loaner car(s) are not available during the repair.

If you buy a car from CarMax, it is eligible for coverage. Some vehicles which are purchased from CarMax are covered by the original manufacturer's factory 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 their MaxCare warranty 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.

Additionally, any accessories or upgrades issued and installed by CarMax are covered by the MaxCare extended service plan. CarMax offers customers the option to include the additional costs in most financing plans. Buyers have the option to make these upgrades to a CarMax vehicle:

  • Leather Upgrades
  • Bluetooth
  • Remote Start
  • In-Dash Navigation
  • Mobile Video
  • Obstacle Avoidance
  • Anti-theft systems
  • Lojack Theft Recovery

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 car dealers of certified pre-owned cars in the United States. CarMax used cars are all CarMax certified, which means that there is no flood or frame damage and no salvage history.

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The Bad

  • Warranty Cost
  • Exclusions
  • Basic Warranty Length

Warranty Cost

The MaxCare extended warranty cost is not disclosed by CarMax until a potential buyer is in the process of buying a car. 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 the deductible. 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 for the warranty repairs.

Exclusions

An extended warranty does not cover every car repair, and this is the case for CarMax warranties. While there is some variability in exclusions depending on the service contract, most warranties do not cover repairs or part replacements due to normal wear and tear.

Extended warranties typically also do not cover repairs from accidents or off-roading. Additionally, if damage was caused by a failure to ensure proper vehicle maintenance, like a regular oil change, most warranty providers will deny the warranty claim.

Car owners must ensure that their vehicle receives routine maintenance on a regular basis to ensure they are not voiding their car warranty.

CarMax helps make this easy for its clients. It has service centers that offer maintenance services and repairs. These are located throughout the United States. Customers who bought their car from CarMax can enjoy some perks by taking their cars to these centers for any needed repair and maintenance.

Basic Warranty Length

CarMax also does not disclose the lengths of service contracts which are available for MaxCare online.

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.

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The Bottom Line

CarMax is a great car dealership to choose when buying a used car that does not already come with a certified pre-owned warranty. CarMax offers extended warranties and clear vehicle histories with each of its certified pre-owned vehicles.

An automobile extended warranty can offer peace of mind to consumers buying a used vehicle. While other extended warranty companies offer extended warranties for almost any car, MaxCare warranties are typically only available for cars sold by CarMax. CarMax's vehicle protection plans or vehicle service contracts are a good option for car shoppers buying from CarMax.

Although there are several exclusions to MaxCare's covered repairs, a certified CarMax limited warranty provides good coverage for some of the most expensive ones. Car owners need to maintain their vehicle through basic maintenance visits to ensure the validity of the MaxCare warranty.

The lack of transparency is a concern as well; however, for those wanting to buy an extended auto warranty for their CarMax vehicle, MaxCare may be a good option. BestComany.com recommends that users read the contract and understand its coverage thoroughly before purchasing any warranty, from CarMax or any other warranty company.

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gale Windsor Mill, MD

I have a service contract with CarMax/Max Care which was not honor. They refer me to Jay's Auto Repair Shop to work on Cadillac ATS my air conditioner and CarMax authorized the owner to do the work. The owner worked on the car to the best of his ability and notify them that the car needed to go to a dealer (the owner was not paid). They them authorized me to go to GM car dealership to do the work and since Jay's auto had try to do the work they deny GM. GM stated that the car need to go to a Cadillac dealer and it was approved by them as well. Once the dealer check the air conditioner and found the problem they call for authorization and was told that it was not approved and that I had to paid $2,702.55 for my car repair. Frankel Cadillac found the founding problem: Heat was coming from the upper windshield vent. The circuits were tested and found faulty left side temperature door actuator and mode door actuator. I have contact my attorney since the CarMax and Max Care would not honor the warranty.

3 years ago

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Tori Arab, AL

I have had issues with my vehicle since I got it from CarMax. It’s been looked at by CarMax, the dealership, and a MaxCare preffered auto repair shop and it has taken more than 6 months for anyone to resolve the issues I am facing with my CarMax vehicle. Thankfully, I chose to get MaxCare and everything has been covered. Although MaxCare has been great, it’s almost not worth the terrible customer service I have received from both CarMax and MaxCare. As a young female in my 20’s, I have felt taken advantage of throughout the process of trying to get my car fixed. If I had to do this car buying experience over again, I would not choose CarMax to do it with.

5 years ago