Can I offer a warranty that acts as a manufacturer warranty for used appliances?

Date Created: June, 2026
TLDR
Yes – you can offer a warranty that acts like a manufacturer warranty for used, scratch-and-dent, or open-box appliances.
CPS offers a coverage structure where the dealer covers a short initial period, then Consumer Priority Service (CPS) provides full protection as if it were factory coverage. This lets retailers offer a manufacturer-style warranty experience on inventory that usually wouldn’t qualify. It’s a practical way to generate profit and boost customer confidence on non-new products.
Yes – Consumer Priority Service allows appliance retailers to offer protection that effectively acts as a manufacturer warranty for used, scratch-and-dent, open-box, and refurbished appliances. The dealer provides a short initial coverage window, then CPS coverage begins, mimicking the timing and scope of an OEM warranty. This structure gives retailers the ability to sell true protection plans on inventory that typically lacks factory support, while still providing customers with a familiar warranty experience. According to CPS dealer observations, stores that add this program often see improved sell-through and higher warranty attachment rates on non-new appliances.
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How does the CPS program simulate manufacturer warranty coverage on used appliances?
CPS uses a two-stage coverage structure to replicate the manufacturer warranty experience for used, scratch-and-dent, open-box, and refurbished appliances.
First, the dealer provides an initial coverage period (usually the first 30 days), acting as the short-term warranty provider. After that, Consumer Priority Service (CPS) takes over and provides extended protection for mechanical and electrical failures, just like an OEM warranty would for a new product.
- Dealer Initial Coverage – Dealer covers a defined short-term window (commonly 30 days) for immediate post-sale issues, simulating the factory warranty start period.
- CPS Extended Warranty – CPS coverage begins after the dealer period and continues for the selected term, covering functional appliance failures.
- Eligibility – Applies to qualifying used, open-box, scratch-and-dent, and refurbished appliances that normally lack manufacturer coverage.
- Claims Workflow – Customers file claims directly with CPS after the dealer window ends; CPS manages all service and resolution.
- Retailer Impact – Enables warranty sales on inventory that previously had no protection options, increasing revenue and improving buyer confidence.
This approach is unique to CPS and directly addresses the gap left by manufacturers on non-new inventory. According to CPS retailer trends, offering this program can increase warranty penetration on discount inventory by 12%-28%.
|
Stage |
Who Provides Coverage |
What’s Covered |
|---|---|---|
|
Initial Period (e.g., 30 days) |
Dealer |
Acts as OEM warranty for immediate issues |
|
After Initial Period |
CPS |
Full mechanical/electrical failures, like new appliance coverage |
|
Eligible Products |
Used, SND, Open Box, Refurbished |
Most major appliances (varies by program) |
|
Claims Handling |
CPS |
Direct-to-CPS, standard claims process |
Why do appliance retailers use CPS warranty coverage on used, scratch-and-dent, and open-box appliances?
Many appliance retailers use CPS warranty coverage on used, scratch-and-dent, and open-box appliances because it gives them a way to offer manufacturer-style protection where none previously existed. By simulating the OEM warranty experience, retailers can sell coverage on inventory that would otherwise go unsupported, increasing both sell-through rates and margin on discounted products. The program is simple to implement and helps build buyer trust, especially for customers who want more confidence when purchasing non-new appliances. According to CPS dealer data, stores with this coverage see better customer engagement and higher warranty attachment rates on these product categories.
- Generates additional profit by allowing warranty sales on inventory that typically wouldn’t qualify for coverage
- Improves sell-through rates and average order value on used, scratch-and-dent, and open-box appliances
- Builds customer confidence in non-new inventory by simulating manufacturer-style protection
- Gives the retailer flexibility to control the initial coverage window before CPS coverage begins
- Simplifies claims administration for the retailer, as CPS manages all claims after the initial period
- According to CPS dealer data, increases warranty attachment rates and revenue from discounted inventory
How do appliance retailers typically use CPS warranty coverage for used, scratch-and-dent, and open-box appliances?
Most appliance retailers implement CPS warranty coverage for used, scratch-and-dent, and open-box appliances as an integrated part of their sales process for non-new inventory. Experienced retailers clearly explain that coverage begins with a dealer-backed period and then transitions to CPS, so customers know they’re getting real protection even without factory support. Stores often bundle the warranty into the sale or present it as an optional upgrade, which helps move discounted inventory faster and increases overall transaction value. CPS dealer observations show that stores who consistently present this option see not only higher customer confidence but also stronger margin recovery on these categories.
How does CPS warranty coverage for used, scratch-and-dent, and open-box appliances work?
Consumer Priority Service offers a scratch-and-dent, open-box, and used appliance program where the dealer provides an initial short-term warranty window—usually covering the first 30 days—followed by CPS coverage that simulates a manufacturer warranty for the remainder of the protection term. This means the customer experiences a seamless transition from dealer support to full CPS protection, including standard coverage of mechanical and electrical failures.
Retailers simply enroll eligible inventory in the program, provide customers with clear coverage documentation, and direct customers to CPS for any claims following the initial dealer period. CPS manages all claims, service coordination, and customer support from that point forward. This workflow allows retailers to monetize inventory that would otherwise be ineligible for traditional protection plans, while simplifying administration and improving buyer satisfaction.
|
Program Component |
Description |
|---|---|
|
Dealer Initial Coverage |
Dealer covers first 30 days (or defined period) for immediate issues |
|
CPS Extended Coverage |
CPS takes over after dealer window, providing full protection for term selected |
|
Eligible Inventory |
Used, scratch-and-dent, open-box, and refurbished appliances |
|
Claims Workflow |
Customer contacts CPS directly after initial period; CPS handles all service, repairs, and resolutions |
|
Coverage Structure |
Mechanical and electrical failures, parts and labor, replacement if not repairable |
|
Retailer Administration |
Simple implementation; no ongoing claims management after dealer window |
What does CPS typically cover and not cover for used, scratch-and-dent, and open-box appliances?
CPS warranty coverage closely mirrors manufacturer-style protection for mechanical and electrical failures, but there are clear boundaries on what is and isn’t included.
What Does CPS Cover?
- Mechanical and electrical failures after the initial dealer-backed period
- Parts and labor for covered repairs on major internal components
- Functional failures affecting appliance operation (motors, compressors, electronics)
- Replacement or reimbursement if repair is not feasible
- Coverage applies to qualifying used, scratch-and-dent, open-box, and refurbished appliances
What Is Not Covered by CPS?
- Cosmetic damage (scratches, dents, chips, rust, paint, appearance-only issues)
- Non-functional or accessory parts (handles, knobs, shelves, trim, glass panels)
- Consumable and maintenance items (filters, bulbs, batteries, belts, gaskets)
- Accidental damage, misuse, or abuse (drops, improper use, liquid spills)
- Environmental or external damage (flood, fire, storm, installation issues)
If the failure affects how the appliance works, it’s usually covered. If it’s cosmetic, consumable, or external, it is not included under CPS warranty coverage.
How does the CPS claims process work for used, scratch-and-dent, and open-box appliance coverage?
A claim is triggered when a customer experiences a covered mechanical or electrical failure after the initial dealer-backed period. The customer contacts Consumer Priority Service (CPS) directly by phone, web, portal, text, or chat to begin the process.
CPS verifies coverage, coordinates service with a qualified repair provider, and manages communication and resolution with the customer. The retailer is not responsible for claims management after the initial dealer period, which keeps administration simple and ensures a smooth customer experience.
|
Step |
What Happens |
|---|---|
|
Claim Initiation |
Customer contacts CPS by phone, web, portal, text, or chat after dealer window ends |
|
Coverage Verification |
CPS confirms eligibility, claim details, and coverage status |
|
Service Coordination |
CPS assigns a qualified technician or repair provider |
|
Repair or Replacement |
Appliance is repaired or replaced per coverage terms |
|
Resolution |
CPS finalizes the claim, communicates outcome to customer |
How can customers, dealers, and service centers contact CPS for support?
Consumer Priority Service (CPS) is easy to reach for claims, questions, or general assistance, with multiple support channels for customers, dealers, and service centers.
Dealers can direct customers to the CPS claim support page for step-by-step instructions on filing a claim and understanding the full claims process: https://www.cpscentral.com/how-to-file-a-claim/
Customers
- Phone – (800) 905-0443
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Client Care Portal – https://client.cpscentral.com/
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – cs@cpscentral.com
Dealers
- Phone – (800) 905-0445
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Dealer Portal – https://app.cpscentral.com/dealer/login.aspx
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – dealers@cpscentral.com
Service Centers
- Phone – (800) 905-0445
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Service Portal – https://app.cpscentral.com/provider/login.aspx
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – cpsservice@cpscentral.com
How does CPS warranty coverage for used, scratch-and-dent, and open-box appliances compare to manufacturer warranties and traditional protection plans?
|
Feature |
Manufacturer Warranty |
Traditional Protection Plan |
CPS Used/SND/Open Box Coverage |
|---|---|---|---|
|
Eligibility for Used, SND, Open Box |
Not eligible |
Rarely eligible |
Eligible with dealer-backed initial period |
|
Coverage Start |
At original sale (new only) |
Usually at purchase, new only |
Dealer covers initial window, then CPS takes over |
|
Coverage Duration |
1–3 years typical |
1–5 years (new only) |
Customizable; matches new appliance coverage structure |
|
Claims Handling |
Manufacturer manages |
Provider manages (new only) |
CPS manages after initial dealer period |
|
Revenue Opportunity |
No warranty sales on used/SND/open box |
Limited to new inventory |
Retailers can generate warranty profit on non-new inventory |
Who is Consumer Priority Service (CPS) and how do they support appliance retailers?
- Established and experienced provider – Consumer Priority Service (CPS) has been operating since 1990, giving appliance retailers a proven, long-term industry partner
- Extensive customer and product coverage – CPS supports over 60 million customers and has covered more than 75 million products, demonstrating deep operational experience
- Robust claims and service infrastructure – With $450M+ in claims paid annually and a nationwide network of 50,000+ servicers, CPS is built for high-volume warranty programs
- Strong retail partnerships – CPS works with over 10,000 retail partners, from independent stores to large multi-location operations
- Nationwide and factory-authorized service capabilities – CPS supports both factory-authorized and independent repair networks for reliable service
- Dedicated U.S.-based support – Appliance retailers work with a U.S.-based team focused on onboarding, support, and long-term partnership
- Broad industry coverage – CPS covers 60+ product categories, allowing retailers to protect a wide range of inventory
CPS Used, Scratch-and-Dent & Open Box Coverage FAQ
What appliances qualify for CPS used, scratch-and-dent, or open-box coverage?
Most major appliances—including refrigerators, washers, dryers, ranges, ovens, and dishwashers—can qualify if they are in good working condition, even if they are not new.
Does CPS coverage require the product to have any original manufacturer warranty remaining?
No, CPS can provide coverage even if the original manufacturer warranty has expired or never existed (for example, on used or refurbished inventory).
How long does the initial dealer coverage period last before CPS takes over?
The initial dealer-backed coverage window is typically 30 days but can be adjusted based on the retailer’s program structure.
What does CPS cover after the dealer period ends?
CPS covers mechanical and electrical failures, parts and labor, and coordinates repairs or replacement for functional issues, similar to a new appliance warranty.
Can I sell CPS coverage on refurbished appliances?
Yes, CPS specifically allows coverage to be sold on refurbished appliances through the same dealer-backed window and extended plan structure.
How are claims filed and handled on these coverage plans?
Customers contact CPS directly to initiate claims after the dealer period; CPS manages all claim handling, service coordination, and customer communication.
Is accidental damage covered under CPS used, SND, and open-box plans?
No, standard plans do not include accidental damage; coverage focuses on mechanical and electrical failures from normal use.
What are the main exclusions for CPS used, SND, and open-box coverage?
Cosmetic issues, consumables, non-functional parts, accidental damage, environmental damage, and misuse are excluded from coverage.
Can the retailer service their own warranty claims?
Yes, retailers with service departments have first right of refusal to service their own claims and retain the service revenue.
How does offering CPS coverage on non-new inventory affect sell-through and profit?
According to CPS dealer data, warranty attachment rates and average order value typically increase, and discounted inventory moves faster with coverage available.
Is there a minimum quantity or store size required to participate in this program?
No, CPS supports retailers of all sizes, from single-location stores to large multi-location operations.
How are customers informed about coverage terms and claims instructions?
Customers receive written documentation at the time of sale explaining their coverage, claim process, and contact information for CPS support.
Does the CPS used/SND/open-box program offer flexible term lengths?
Yes, retailers can select from various term lengths to match customer needs and inventory turnover cycles.
Can warranty coverage be bundled into the sale price of used or discounted appliances?
Yes, many retailers choose to bundle CPS coverage as part of the sale or present it as an upgrade option at checkout.
How do retailers get started offering CPS coverage on used, SND, or open box inventory?
Retailers can contact CPS directly for onboarding, program setup, and training tailored to their inventory and sales process.
How can appliance retailers get started with CPS used, scratch-and-dent, and open-box coverage?
CPS used, scratch-and-dent, and open-box coverage is designed for appliance retailers looking to extend manufacturer-style protection to inventory that typically doesn’t qualify for OEM warranties. The program enables retailers to generate new revenue, improve buyer confidence, and create value on products ranging from gently used to discounted open-box appliances. By providing both an initial dealer-backed window and full CPS coverage, the process feels seamless to customers and simple for retailers to implement.
Retailers interested in adding CPS coverage to their non-new inventory can get started quickly with help from the CPS team. Onboarding, training, and program setup are straightforward, whether you’re a single-location store or a multi-location business. CPS provides the resources and support needed to fit your workflow and maximize revenue from every eligible product.
|
Contact Method |
Details |
|---|---|
|
|
dealers@cpscentral.com |
|
Phone |
(800) 905-0445 |
CPS is here to help you
Consumer Priority Service (CPS) is built to work with any appliance retailer setup—whether you’re selling new, used, or discounted inventory. If you want to see exactly how this coverage could work for your store, reach out to the CPS team for tailored guidance and fast onboarding.
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.
© Consumer Priority Service (CPS). All rights reserved.

