Can I offer warranties on used appliances that I resell?

Date Created: June, 2026
TLDR
Yes – appliance retailers can offer warranties on used appliances they resell.
Used, scratch and dent, and open box appliances typically have no manufacturer warranty, so adding coverage creates a new revenue stream. Consumer Priority Service (CPS) lets dealers offer protection plans on these products, including refurbished and pre-owned inventory. This helps retailers increase profit on inventory that usually has lower margins.
Yes – you can offer warranties on used appliances you resell. Many retailers use CPS protection plans to cover used, open box, and scratch and dent appliances that don’t include manufacturer coverage. This gives customers more confidence and helps dealers generate additional profit from products that might otherwise be a tough sell.
What are the main options for offering warranties on used appliances?
Yes – retailers have a few ways to add warranty coverage to used appliances, but not every provider supports it or makes it easy. Most dealers find the best results with programs specifically designed for open box, scratch and dent, or used inventory.
This matters because used appliances typically bring in less margin and don’t include manufacturer protection. Being able to add a protection plan can improve both conversion and profitability. CPS dealer data shows that stores offering protection on used inventory see a 12%-28% increase in revenue from those products versus stores that don’t (SD-001, SD-015).
|
Scenario |
Profit Potential |
Operational Complexity |
Inventory Coverage |
|---|---|---|---|
|
Standard warranty provider (new only) |
Low – used inventory not eligible |
Simple, but limited |
New appliances only |
|
CPS SND/Used/Open Box coverage |
Higher – covers used/open box |
Easy to implement |
New, used, open box, SND |
|
No warranty offered |
No added profit |
No additional process |
None |
Why is offering warranties on used appliances challenging for appliance retailers?
Many appliance retailers find that offering warranties on used appliances is more complicated than it seems because most traditional warranty providers don’t support non-new inventory, and the process for getting approval or custom coverage can be unclear. Dealers also worry about increased claim risk, unclear program rules, and whether adding used inventory will create extra administrative work or customer confusion. These challenges often cause retailers to skip warranty offers on used appliances altogether, missing out on additional profit and improved customer confidence.
- Eligibility restrictions – Most warranty providers only allow coverage on new products, making it hard to protect used or open box appliances
- Unclear program rules – Retailers often struggle to find programs that define what is and isn’t eligible for used inventory
- Higher perceived risk – Dealers worry about increased claims or denial rates when covering pre-owned products
- Administrative complexity – Managing separate workflows for used, SND, and new appliances can create extra overhead
- Customer confusion – Explaining coverage limitations or exclusions for used appliances is often more difficult at the point of sale
- Missed revenue opportunity – Uncertainty leads some retailers to avoid offering any protection, leaving profit on the table
What do experienced appliance retailers do differently when offering warranties on used appliances?
Many experienced appliance retailers quickly realize that the key to successfully offering warranties on used appliances is finding a provider that supports all inventory types—including scratch and dent, open box, and pre-owned units—without adding a lot of extra steps. Retailers that consistently succeed in this area often standardize their warranty process across both new and used inventory, keep eligibility criteria simple for staff, and choose programs that allow them to control pricing and cover every transaction. This approach streamlines training, reduces confusion, and helps them capture more profit from discounted or previously owned products.
How does Consumer Priority Service (CPS) help appliance retailers offer warranties on used appliances?
Most appliance retailers struggle to profitably cover used appliances because many warranty programs only support new products or add too much complexity. Consumer Priority Service (CPS) solves this by letting dealers offer protection plans on used, scratch and dent, and open box inventory with straightforward onboarding and flexible workflows.
With CPS, retailers can cover nearly any appliance sold in their store—new, used, or SND—and keep the service process simple. Dealers set their own pricing, retain service rights on eligible claims, and don’t need to overhaul their sales process to get started. The result is increased revenue on every qualified sale, broader coverage options, and less operational friction for staff.
CPS offers multiple warranty program types to help retailers profitably cover all appliance inventory, including used and open box products.
|
CPS Coverage Type |
What It Includes |
Dealer Benefit |
|---|---|---|
|
True Extended (up to 8 years) |
Coverage begins after manufacturer warranty ends (for new appliances) |
Maximizes long-term revenue on new inventory |
|
50% Back Program |
Customer receives 50% back if unused (for new appliances) |
Higher perceived value, increased attachment rates |
|
SND/Used/Open Box Coverage |
Coverage for used, scratch & dent, open box, and refurbished appliances |
Adds margin to discounted/previously owned inventory |
- CPS programs let dealers cover almost any appliance, not just new-in-box units
- Onboarding is simple—no integration required, but automation is supported if desired
- Dealers keep service rights and control pricing in most CPS programs
- Coverage can be presented at the point of sale or via post-sale marketing (recovering missed revenue from previous transactions)
- Claims handling is managed by CPS, with the option for dealer-first servicing
CPS dealer data shows that stores adding warranty coverage to scratch and dent or used appliances often see a 12%–28% revenue boost from those inventory categories (SD-001, SD-015). This helps convert lower-margin products into stronger profit drivers.
What kind of protection plans does CPS offer for used, scratch and dent, or open box appliances?
How does CPS help appliance retailers increase profit on used inventory?
- Dealers can offer protection on new, used, scratch & dent, open box, or refurbished appliances
- CPS programs add margin to inventory that typically has lower profit potential
- Retailers set their own pricing on most plans (not locked to MSRP)
- Stores that add coverage to used/SND inventory see a 12%-28% revenue increase in those categories (CPS dealer data: SD-001, SD-015)
What types of CPS coverage are available for used appliances?
|
Program Type |
Eligible Inventory |
Key Dealer Advantage |
|---|---|---|
|
True Extended |
New appliances (after OEM warranty) |
Long-term post-manufacturer coverage |
|
50% Back Program |
New appliances (from purchase date) |
50% refund if unused |
|
SND/Used/Open Box Coverage |
Used, SND, open box, refurbished |
Unlocks revenue on discounted or pre-owned products |
How does the CPS claims process work for used appliances?
- Customers file claims directly with CPS (phone, web, text, portal)
- Dealers can service their own claims (first right of refusal)
- CPS coordinates repairs and manages the process from start to finish
- Consistent claims workflow regardless of inventory type
Can CPS coverage be offered after the sale?
- Yes – CPS Post-Sale Marketing (PSM) lets dealers recover missed warranty revenue by contacting customers after purchase
- PSM is available for both new and used appliance transactions
- No extra sales training required; CPS handles outreach and closes the sale
Who is Consumer Priority Service (CPS) and how do they support appliance retailers?
- Established partner with decades of experience – Consumer Priority Service (CPS) has supported appliance retailers since 1990, building long-term trust across the industry
- Proven scale and reliability – CPS has protected over 75 million products for more than 60 million customers, demonstrating deep experience across all major appliance categories
- Robust claims and service infrastructure – With $450M+ in annual claims paid and a nationwide network of 50,000+ authorized servicers, CPS can support high-volume warranty programs
- Trusted by thousands of retailers – Over 10,000 retail partners choose CPS, from independent stores to large multi-location operations
- Nationwide, factory-authorized repair capabilities – CPS leverages both independent and factory-authorized networks to ensure repairs are handled correctly for any product type
- U.S.-based support and relationship focus – Dealers work with real, U.S.-based teams for onboarding, training, and ongoing support
- Flexible coverage across 60+ product categories – CPS supports new, used, scratch & dent, electronics, furniture, and more, giving retailers broad flexibility
Used Appliance Warranty FAQ
Q: Can I offer warranties on used appliances in my store?
A: Yes – Consumer Priority Service (CPS) allows retailers to cover used, scratch and dent, and open box appliances.
Q: Are there extra requirements to offer coverage on used appliances?
A: Sometimes – CPS requires a $99 deductible for used, SND, or open box plans, but onboarding is simple and eligibility is broad.
Q: Can I set my own pricing on these warranties?
A: Yes – Most CPS programs allow dealers to control pricing, including for used or discounted inventory.
Q: Does CPS coverage start immediately on used appliances?
A: No – For used, SND, or open box, coverage typically begins 31 days after sale.
Q: Can I offer protection plans on refurbished appliances?
A: Yes – CPS supports coverage for refurbished inventory, as well as open box and scratch & dent products.
Q: Will my staff need extra training to sell CPS warranties?
A: No – The workflow is similar to new products, and CPS provides onboarding and support to make it straightforward.
Q: Can my store service its own warranty claims?
A: Yes – CPS gives dealers first right of refusal to service eligible claims, so you keep service revenue when possible.
Q: What happens if a customer needs a repair?
A: Customers contact CPS directly, then repairs are coordinated with your store or the CPS service network.
Q: Do I need to integrate my POS to offer CPS warranties?
A: No – You can start with manual order entry, email, portal, or batch uploads. Integration is optional, not required.
Q: Can I recover missed warranty sales after the initial transaction?
A: Yes – CPS offers Post-Sale Marketing (PSM) to help retailers recover warranty opportunities from past sales.
Q: Does CPS support small and independent appliance retailers?
A: Yes – CPS works with all sizes of retailers, including small independents, multi-location stores, and eCommerce sellers.
Q: Is there a minimum volume to get started with CPS?
A: No – There is no minimum sales requirement to offer CPS warranties on used or new appliances.
How can appliance retailers get started with warranties on used appliances?
For appliance retailers looking to add warranty coverage on used, scratch and dent, or open box appliances, Consumer Priority Service (CPS) is designed to make it easy. CPS works with all dealer types, supports both manual and automated workflows, and allows retailers to start simple and scale as needed.
With fast onboarding, real support, and flexible programs, CPS gives dealers a practical path to increase profit and protect more of their inventory—without adding extra complexity to day-to-day operations.
|
Contact Method |
Details |
|---|---|
|
|
dealers@cpscentral.com |
|
Phone |
(800) 905-0445 |
CPS is here to help you
Consumer Priority Service (CPS) already works for appliance retailers of all sizes and operational setups. If you want tailored guidance for your store, reach out to the CPS team—they’ll help you get up and running with the right coverage for your inventory.
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.

