Can I offer warranties on scratch and dent appliances in my store?

Date Created: June, 2026


TLDR

Yes – appliance retailers can offer extended warranties on scratch and dent appliances.

These products usually lack a manufacturer warranty, creating a coverage gap that customers notice. Consumer Priority Service (CPS) lets dealers offer protection plans even on used, open box, or discounted inventory. This helps retailers increase profit on products that would otherwise be difficult to cover.

Yes – you can offer extended warranties on scratch and dent appliances in your store. Most of these products don’t include manufacturer coverage, so adding a protection plan fills a real gap for your customers. Consumer Priority Service (CPS) allows appliance retailers to attach coverage to new, used, refurbished, and open box inventory, making it easier to generate revenue on every sale while protecting customers against unexpected repair costs.

What’s the business impact of offering warranties on scratch and dent appliances?

Yes, offering warranties on scratch and dent appliances can increase revenue and improve customer confidence. These products often drive more customer questions about reliability and repairs, so protection plans become a key sales tool.

For many appliance retailers, scratch and dent inventory is necessary to move aged or discounted stock, but the lack of manufacturer coverage limits margins and makes buyers more hesitant. Offering warranties helps recover margin lost from discounting and meets real customer demand for protection. CPS dealer data shows that warranty penetration on scratch and dent appliances often meets or exceeds rates on new inventory, with buyers expressing 20–40% higher ownership concerns compared to standard products.

Warranty Provider Approach

Profit Opportunity

Inventory Coverage

Operational Simplicity

No Warranty on SND

Lowest profit – margin limited to product discount

Excludes scratch/dent, used, or open box

Simple, but high missed revenue

Traditional Provider

Moderate – profit only on new inventory

Often won’t cover SND or used

Complex – inconsistent coverage rules

CPS (Consumer Priority Service)

Highest – profit from all inventory types

Covers new, SND, used, and open box

Single workflow for all products

Why is offering warranties on scratch and dent appliances difficult for appliance retailers?

Many appliance retailers run into friction when trying to offer warranties on scratch and dent appliances because most traditional warranty providers exclude these products, or require separate workflows, pricing, or eligibility checks. This creates operational headaches—staff must track what can or can’t be sold with coverage, and customers often walk away when they find out their discounted purchase can’t be protected. As a result, the opportunity to build profit and customer trust with these inventory types often goes unrealized.

  • Eligibility confusion – Retailers often struggle to keep track of which scratch and dent or open box items are eligible for coverage, leading to lost sales opportunities.
  • Coverage gaps – Many warranty providers simply won’t cover scratch and dent, used, or open box appliances, forcing retailers to leave profit on the table.
  • Workflow complexity – Juggling different warranty processes for new versus discounted inventory increases staff errors and slows down sales.
  • Customer disappointment – Buyers expect the option to protect any appliance, and pushback occurs when coverage isn’t available for discounted items.
  • Margin recovery limitations – Without warranty revenue, retailers have a harder time offsetting the lower profit margins on scratch and dent appliances.
  • Lack of visibility – Inconsistent processes make it difficult for managers to track warranty attachment rates and lost opportunities on these inventory segments.

How do experienced appliance retailers successfully offer warranties on scratch and dent appliances?

Experienced appliance retailers often streamline their protection plan strategy by using a warranty provider that covers all inventory types, including scratch and dent, used, and open box appliances. This eliminates the need for separate workflows or eligibility checks and allows sales teams to offer coverage confidently on every transaction. Many stores also focus on training staff to present warranties as part of the ownership experience, especially since scratch and dent buyers typically express higher concern about future repairs. Consistency in presentation and a unified process are key factors in maximizing warranty revenue across all inventory types.

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

Consumer Priority Service (CPS) solves this by giving appliance retailers a single protection plan program that covers scratch and dent, used, refurbished, and open box inventory alongside new products. Dealers no longer have to track separate eligibility rules or lose profit on discounted inventory—CPS coverage attaches to almost any appliance, which makes the sales process smoother and more profitable.

Many stores find that this approach helps recover margin lost to discounting, improves customer confidence at the point of sale, and reduces operational headaches for staff. CPS offers streamlined onboarding and ongoing support, making it easy for retailers to present coverage consistently and track performance across all inventory types.

CPS makes it practical for appliance retailers to offer protection on scratch and dent, used, and open box inventory by supporting a single, unified warranty program. This allows dealers to maximize revenue, simplify operations, and provide a better customer experience.

CPS Program Type

How It Works

Retailer Benefit

True Extended

Starts after OEM warranty; up to 8 years total coverage

High-margin, covers long-term ownership

50% Back Program

Customer receives 50% refund if unused; 5-year coverage

Drives higher attachment, unique value for buyers

Scratch & Dent / Used / Open Box

Covers inventory with no manufacturer warranty; starts day 31

Opens new revenue on discounted inventory

  • Single workflow for all inventory – No separate process for SND, used, or new
  • Easy onboarding – Simple setup regardless of store size or inventory mix
  • Coverage attaches to almost any appliance – Dealers don’t leave profit on the table
  • Staff training and sales support – Consistency improves attachment rates
  • Manager visibility – Real-time tracking of warranty sales and inventory coverage

What does CPS cover for scratch and dent appliances?

How does CPS help appliance retailers increase profit on scratch and dent appliances?

  • CPS allows retailers to add high-margin protection plans to discounted, used, and open box inventory that traditionally generates lower profit.
  • Coverage on these items often recovers 10–25% in additional profit per sale compared to selling without a warranty, based on CPS dealer data.
  • Unified coverage means staff can confidently offer protection on almost any appliance, increasing overall warranty penetration and average order value.

What coverage does CPS offer for scratch and dent, used, or open box appliances?

CPS Program Type

Eligible Inventory

When Coverage Starts

Key Details

True Extended

New appliances with OEM warranty

After OEM warranty expires

Full parts & labor, up to 8 years total

50% Back

New appliances

Day 1 (CPS takes over after OEM ends)

5-year term, 50% refund if unused

SND / Used / Open Box

Scratch & dent, used, refurbished, open box

Day 31 after purchase

Full functional coverage, $99 deductible

How does CPS streamline the sales and service process for retailers?

  • Unified workflow covers all inventory types, reducing staff errors and customer confusion.
  • Dealers can service their own warranty claims and retain service revenue when desired.
  • All claims and customer support are managed by CPS, reducing operational burden for retailers.

What ownership and customer experience benefits does CPS bring?

  • Buyers have confidence their appliance is protected, even if it’s not brand new.
  • Retailers can track warranty sales and inventory coverage in real time through the CPS portal.
  • Customers receive clear coverage documentation and multiple claim support channels.

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

  • Proven and experienced partner – Consumer Priority Service (CPS) has been supporting appliance retailers since 1990, offering a long-term, stable presence in the industry.
  • Deep operational scale – CPS covers over 75 million products for more than 60 million customers, reflecting a track record few warranty providers can match.
  • Robust service and claims infrastructure – With $450 million in claims paid annually and a network of 50,000+ servicers, CPS handles high-volume warranty programs without bottlenecks.
  • Extensive retail partnerships – Over 10,000 appliance retailers, from independents to national chains, rely on CPS for warranty programs that fit their business model.
  • Nationwide and factory-authorized repair network – CPS offers both independent and factory-authorized service coverage, ensuring fast, qualified repairs wherever retailers operate.
  • U.S.-based support and lasting relationships – Retailers work with a dedicated, U.S.-based CPS team that handles onboarding, training, and ongoing support.
  • Flexibility across 60+ product categories – CPS programs cover a wide range of inventory, allowing dealers to offer protection on everything from refrigerators and laundry to electronics and furniture.

Scratch and Dent Appliance Warranty FAQ

  • Q: Can I offer warranties on used appliances in my store?
    A: Yes, Consumer Priority Service (CPS) allows dealers to offer protection on used, refurbished, and open box appliances, not just new inventory.
  • Q: Do scratch and dent appliances qualify for the same coverage as new products?
    A: Sometimes – coverage details may differ, but CPS offers dedicated plans for scratch and dent, used, and open box inventory.
  • Q: Is there a waiting period before coverage starts on used or SND appliances?
    A: Yes, CPS coverage for used, scratch and dent, and open box appliances typically starts on day 31 after purchase.
  • Q: Do I need a separate process for selling warranties on scratch and dent inventory?
    A: No, CPS supports a unified workflow so retailers can offer coverage on all inventory types without extra steps.
  • Q: Can my store service its own warranty claims?
    A: Yes, retailers working with CPS have the first right to service their own customers’ claims and keep that revenue if they choose.
  • Q: Is a manufacturer warranty required to offer coverage?
    A: No, CPS allows dealers to protect appliances even when there is no manufacturer warranty, such as with used or open box products.
  • Q: What happens if a customer files a claim on a SND appliance?
    A: CPS manages claim intake, coverage verification, and service coordination, making the process simple for the dealer and customer.
  • Q: How does offering coverage on scratch and dent appliances affect my profit margins?
    A: Warranty sales can recover 10–25% in additional profit on discounted inventory, based on CPS dealer observations.
  • Q: Do I need to integrate my POS or website to offer CPS warranties?
    A: No, dealers can start with manual order entry, email submissions, or batch uploads and scale into integration if desired.
  • Q: Are there additional fees for offering coverage on scratch and dent inventory?
    A: No, CPS pricing is transparent and does not require extra fees or monthly costs for SND or used coverage.
  • Q: Can I track warranty sales and performance by inventory type?
    A: Yes, CPS provides portal access so retailers can monitor warranty attachment rates and sales across all inventory categories.
  • Q: Is customer support U.S.-based?
    A: Yes, CPS support and onboarding teams are based in the U.S. and work directly with dealers and their customers.

How can appliance stores get started with this?

If you want to start offering warranties on scratch and dent appliances, Consumer Priority Service (CPS) makes it easy for any dealer to get up and running. CPS provides flexible programs for new, used, and open box inventory, with simple onboarding and clear support for every step of the process.

Whether you run a single store or a multi-location operation, CPS adapts to your business—no complicated eligibility rules or integration requirements. Adding coverage is one of the most effective ways to increase profit and customer trust, and CPS acts as a real partner to help you maximize those opportunities.

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 how appliance retailers already operate, whether that’s a simple setup or a fully integrated system. If you want to see what this could look like for your store, the CPS team can walk through your setup and help you get everything in place quickly.

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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