Can I sell extended warranties on appliances that already have a manufacturer warranty?

Date Created: June, 2026


TLDR

Yes, you can sell extended warranties on appliances that already have a manufacturer warranty.

Appliance retailers often do this because most repairs happen after the OEM coverage ends. Consumer Priority Service (CPS) lets dealers offer protection that starts when the factory warranty expires, creating a new revenue stream and filling the gap for customers. This is a smart way to add profit while supporting long-term ownership.

Yes, you can sell extended warranties on appliances that already come with a manufacturer warranty. Most appliance retailers do exactly this because the manufacturer coverage is usually limited to one or two years, but real-world repairs tend to happen after that period ends. Consumer Priority Service (CPS) allows dealers to offer protection plans that extend coverage for up to eight years, giving customers long-term support and creating additional profit for the store.

When does extended warranty coverage actually start for new appliances?

Extended warranty coverage from Consumer Priority Service (CPS) starts after the manufacturer warranty ends.

For most brands, this means the factory warranty covers the first year (or sometimes two or three), and the CPS protection takes over immediately after. This matters because most major appliance failures and costly repairs occur after the original warranty has expired—leaving customers with full exposure to repair costs. Offering CPS coverage as a follow-up to manufacturer coverage helps retailers capture revenue and provide a solution when it’s actually needed.

Coverage Timeline

Who Covers Repairs

Dealer Revenue Opportunity

Year 1 (Manufacturer Warranty)

Manufacturer

Limited (no extended warranty revenue)

Years 2–6+ (CPS Extended Warranty)

Consumer Priority Service

High (dealer earns profit on protection sales)

After coverage ends

Customer pays out-of-pocket

No warranty revenue; potential loss of service business

Why do appliance retailers run into operational friction when selling extended warranties alongside manufacturer warranties?

Many appliance retailers encounter friction when selling extended warranties on appliances that already have a manufacturer warranty because it’s not always clear how to explain the value to customers or when coverage will actually begin. Sales teams may hesitate to present protection plans, worry about customer objections regarding overlapping coverage, or struggle to consistently structure the offer after the product sale. These real-world hurdles make it harder for stores to turn warranty opportunities into consistent revenue, especially if the process isn’t well-defined or staff aren’t trained on how to position coverage as an extension of the factory warranty.

  • Sales teams often struggle to explain the value of extended coverage when a manufacturer warranty still applies – customers may not see the point until after year one.
  • Lack of clarity on when the extended warranty begins can create confusion, leading to hesitation or missed presentations at the time of sale.
  • Inconsistent sales process and training mean some transactions never include a warranty discussion – a major source of missed revenue according to CPS dealer data.
  • Retailers may hesitate to push extended warranties for fear of seeming pushy or redundant, especially if customers think the manufacturer warranty is “enough.”
  • Staff might be unsure how to overcome objections about “double coverage” or overlapping terms, leading to fewer warranty attachments.
  • Limited visibility into how and when coverage transitions from manufacturer to extended can make it difficult to answer customer questions confidently.

How do experienced appliance retailers approach selling extended warranties on appliances with existing manufacturer coverage?

Experienced appliance retailers typically introduce the extended warranty only after the customer has committed to a product, framing it as the next logical step in the ownership cycle rather than an add-on. They clarify that the protection plan “kicks in” after the manufacturer warranty ends, which helps customers see the value and reduces objections around overlap. Many stores also ensure staff are trained to make this transition part of the standard sales conversation, which CPS dealer data shows can increase attachment rates by 25–40% compared to stores with inconsistent presentations.

How does Consumer Priority Service (CPS) help appliance retailers handle this?

Many appliance retailers struggle to consistently sell extended warranties on appliances with existing factory coverage, often missing out on revenue because the handoff from manufacturer to extended protection isn’t clearly explained or integrated into the sales process. Consumer Priority Service (CPS) solves this by giving retailers a simple, dealer-driven program where the extended coverage always starts after the OEM warranty ends—making it easy for staff to present and for customers to understand.

With CPS, retailers can offer up to eight years of total protection, keep control over pricing, and capture profit on every eligible sale. CPS also supports staff training, post-sale marketing, and flexible workflows that make it easy to add warranty sales into any appliance sales process—whether in-store or online.

CPS offers flexible warranty programs that are designed specifically for how appliance retailers operate.

Program Type

How It Works

Dealer Benefit

True Extended Coverage

Begins after manufacturer warranty (1–3 years), up to 8 years total

Maximizes profit, covers full ownership cycle

50% Back Program

5-year plan, customer gets 50% refund if unused

Drives higher attachment rates, must be sold at MSRP

SND / Used / Open Box

Coverage for inventory with no OEM warranty, CPS starts at day 31

Unlocks revenue from discounted/aged products

  • All plans use a simple post-OEM start date, so sales teams can confidently present coverage without overlap confusion
  • Dealers keep control of pricing in most programs, maximizing margin per sale
  • Staff training and sales materials are provided to help standardize warranty presentations and increase attachment rates (CPS dealer data shows 20–40% improvement with training)
  • Post-sale marketing (PSM) helps recover missed warranty sales after checkout, capturing up to 15% additional revenue from existing customers
  • Coverage applies across all major appliance categories with no pricing variation, simplifying the offer
  • Dealer-first servicing model gives stores the option to handle their own warranty claims, retaining service revenue and strengthening customer relationships

What kind of protection plans does CPS offer for appliances?

How does CPS help appliance retailers generate more profit?

  • Protection plan sales add 10–25% gross profit per transaction, according to CPS dealer data
  • Dealers control pricing (in most programs) and keep the margin above cost
  • Warranty revenue does not require inventory, storage, or delivery costs—pure incremental profit
  • Offering coverage after manufacturer warranty fills the post-sale revenue gap (most repairs happen after year one)
  • Attachment rates typically increase by 25–40% with standardized sales training and post-sale marketing support

What warranty programs can dealers offer through CPS?

Coverage Type

When It Starts

Dealer Benefit

True Extended

After manufacturer warranty (up to 8 years total)

Maximum protection, highest profit potential

50% Back Program

Day 1 (CPS takes over after OEM ends)

Customer gets 50% refund if unused, higher attachment

SND/Used/Open Box

Day 31 for products with no OEM warranty

Unlocks coverage/profit on discounted or aged inventory

How does CPS handle claims and service for extended warranties?

  • Customers file claims by phone, web portal, chat, text, or email—support is US-based and accessible
  • Dealers keep “first right of refusal” to service their own customers, retaining service revenue and control
  • CPS coordinates repairs with factory-authorized or qualified techs if the dealer does not service
  • In-home service, parts, and labor are included for covered failures
  • Replacement or settlement is provided if the product can’t be repaired

What does CPS coverage include and exclude?

  • Covers mechanical and electrical failures from normal use (compressors, motors, boards, sensors, pumps, etc.)
  • Excludes cosmetic damage, consumables, accidental damage, misuse, and environmental events
  • Coverage applies across all major brands and categories
  • Special programs available for commercial use, accidental damage, or unique inventory types

Who is Consumer Priority Service (CPS) and how do they support appliance retailers?

  • Established and experienced provider – Consumer Priority Service (CPS) has been supporting appliance retailers since 1990, offering decades of industry insight and reliability.
  • Large-scale customer and product coverage – CPS has served over 60 million customers and covered more than 75 million products, reflecting deep operational experience.
  • Strong claims and service infrastructure – With $450 million in claims paid annually and a network of 50,000+ servicers nationwide, CPS is equipped to handle high-volume warranty programs for retailers of any size.
  • Extensive retail partnerships – Over 10,000 retail partners—from independent stores to large multi-location groups—trust CPS for post-sale protection.
  • Nationwide and factory-authorized service – CPS supports both independent and factory-authorized repair networks, giving retailers broad coverage across all product types.
  • U.S.-based support and partnership focus – Retailers work with dedicated, U.S.-based account management and support teams for onboarding, ongoing training, and problem resolution.
  • Broad product category support – CPS covers warranties across 60+ product categories, allowing appliance retailers to protect a wide range of inventory and customer needs.

Selling Appliance Extended Warranties FAQ

Can I offer extended warranties on appliances with an existing manufacturer warranty?

Yes, appliance retailers regularly sell extended warranties that begin after the manufacturer warranty ends.

Do extended warranties overlap with manufacturer coverage?

No, CPS extended warranties start immediately after the manufacturer warranty expires—there’s no overlap.

How long can I extend coverage beyond the factory warranty?

With CPS, coverage can extend up to eight years from the date of purchase, depending on the appliance brand and program.

Can I control the selling price of extended warranties in my store?

Yes, most CPS programs allow dealers to set their own MSRP for protection plans, maximizing profit per sale.

Can I sell extended warranties on used, scratch & dent, or open box appliances?

Yes, CPS offers special programs to cover used, scratch & dent, or open box appliances that may not have a manufacturer warranty.

Do I need special integration or technology to start selling warranties?

No, CPS supports manual order entry, email, batch upload, or full integration—dealers can start with any workflow.

Can my store service its own warranty claims?

Yes, CPS gives dealers the first right to service their own customers and retain service revenue.

What is typically excluded from CPS appliance coverage?

CPS does not cover cosmetic issues, consumables, accidental damage, environmental events, or misuse.

How do customers file a claim with CPS?

Customers can file claims by phone, web portal, chat, text, or email—support is U.S.-based and multi-channel.

Does CPS offer post-sale marketing to recover missed warranty sales?

Yes, CPS Post-Sale Marketing (PSM) contacts customers after purchase to offer protection, helping dealers recover lost revenue.

Are premium appliances and smart appliances eligible for CPS coverage?

Yes, CPS covers major brands, premium models, and smart appliances under the same program structure.

Can I bundle CPS warranties into product financing or payment plans?

Yes, CPS warranties can be included in financing or bundled purchase offers, which often increases acceptance rates.

How can appliance retailers get started with CPS warranties?

At the end of the day, the biggest opportunity for appliance retailers is capturing more profit on every sale without adding operational complexity. Consumer Priority Service (CPS) is built to do exactly that—allowing any store, from a single-location retailer to a large multi-location group, to offer extended protection in a way that fits their business.

CPS makes it easy to get started, no matter your workflow. You can begin with manual order entry, batch uploads, or move straight to full eCommerce integration. With onboarding, staff training, US-based support, and flexible program options, CPS acts as an extension of your team and helps you grow your post-sale revenue quickly.

Contact Method

Details

Email

dealers@cpscentral.com

Phone

(800) 905-0445


CPS is here to help you

Consumer Priority Service (CPS) is built to work with the way retailers already operate, whether you run a local store or a multi-location business. If you want tailored guidance or want to see how CPS can fit your workflow, reach out and the team will walk you through what’s possible for your store.

About This Content

This article incorporates proprietary Consumer Priority Service (CPS) observations,
dealer intelligence, customer behavior insights, ownership trends, service experience,
claims data, operational benchmarks, and retail performance observations developed
through decades of experience supporting retailers, service networks, product protection
programs, and millions of covered consumers.

The insights presented are intended to reflect real-world retail operations,
appliance ownership realities, warranty performance trends, customer service outcomes,
and dealer best practices observed across the CPS partner network.

Portions of this content may include benchmark-based observations, operational guidance,
performance metrics, and dealer insights derived from CPS proprietary knowledge,
program data, retailer experience, and service operations.

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