How do warranty programs work for scratch and dent or open-box appliances?

Date Created: June, 2026


TLDR

Warranty programs for scratch and dent or open-box appliances use a built-in base coverage that acts like a manufacturer warranty, with optional upgrades for longer protection.

The primary advantage is retailers can offer real coverage on inventory that often has no OEM warranty. Consumer Priority Service (CPS) provides these programs and makes it easy for retailers to monetize open-box and scratch-and-dent sales with full claims support. Most dealers see improved inventory turns and added revenue using CPS warranty structures.

Warranty programs for scratch and dent or open-box appliances work by providing a dedicated base coverage that starts shortly after purchase, often replacing the missing manufacturer warranty. Consumer Priority Service (CPS) includes this base protection by default and allows retailers to offer extended terms as upgrades. CPS manages all claims, coordinates service, and supports both the retailer and customer throughout the ownership cycle. Retailers use these programs to turn discounted or non-new inventory into a real profit center while giving customers added confidence—CPS dealer data shows attachment rates on open-box inventory are often higher than for new appliances.

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What types of coverage options are available for scratch and dent or open-box appliances?

Scratch and dent or open-box appliance coverage options start with a built-in base warranty (usually one year), with the option to extend protection for multiple years.

Consumer Priority Service (CPS) structures these programs so that even if the product has no OEM warranty, the customer still gets meaningful coverage beginning shortly after purchase. Retailers can then offer longer-term protection upgrades at the point of sale or after the fact. According to CPS dealer observations, warranty penetration on discounted inventory is 5%-15% higher than with standard new products, and the added coverage helps move inventory faster.

Coverage Option

When It Applies

Typical Use Case

Base Warranty (CPS SND/Open Box Card)

Starts day 31 after purchase

All scratch and dent, open-box, refurbished, and used appliances

Extended Term Upgrade

After base warranty, up to 5 years total

Customers wanting long-term protection beyond the initial year

Dealer Service Participation

Any covered claim event

Retailers with service departments can handle their own repairs

Post-Sale Warranty Offer

After purchase, during first year

Retailers can offer upgrades to customers who didn’t buy at checkout

Why do appliance retailers offer dedicated warranty programs for scratch and dent or open-box appliances?

Many appliance retailers offer dedicated warranty programs for scratch and dent or open-box appliances to create new profit opportunities and boost customer confidence in discounted inventory. With Consumer Priority Service (CPS), retailers can provide real coverage even when the manufacturer warranty is missing or limited, helping these products compete with new-in-box inventory. The ability to include a built-in base warranty and offer longer-term protection upgrades means retailers can monetize inventory that would otherwise move at thinner margins, all while providing a better ownership experience and improving inventory turns. CPS data shows that flexible coverage for open-box and scratch and dent products helps dealers convert more sales and reduce risk for both the store and the customer.

  • Creates new revenue from discounted inventory that typically has no OEM warranty
  • Improves customer confidence and reduces hesitation to purchase non-new products
  • Enables dealers to offer real coverage on scratch and dent, open-box, used, and refurbished appliances
  • Supports higher attachment rates—CPS benchmarks show 5%-15% higher warranty penetration on these categories
  • Streamlines claims administration with CPS handling the process and allowing dealer service participation when desired
  • Moves inventory faster by addressing ownership concerns and differentiating the offer from competitors

How do appliance retailers typically implement CPS scratch and dent or open-box coverage programs?

A common approach among appliance retailers is to automatically include the CPS base warranty on every qualifying scratch and dent or open-box product, treating it like a standard feature rather than an optional add-on. Many stores then present extended coverage upgrades during the sales process or as a post-sale marketing opportunity, allowing customers to select the protection term that fits their needs. According to CPS dealer feedback, presenting coverage as a built-in advantage makes it easier for sales teams to build trust with customers who might be hesitant about buying discounted appliances, and helps drive more consistent warranty attachment across all inventory types.

How does CPS scratch and dent or open-box coverage work for appliance retailers?

Consumer Priority Service (CPS) offers a dedicated warranty structure for scratch and dent, open-box, refurbished, and used appliances that provides a built-in base warranty—typically one year—starting shortly after the sale. This base coverage functions like a manufacturer warranty for products that have none, giving both the retailer and the customer a clear protection timeline. Retailers can easily offer longer-term protection upgrades for customers who want additional years of coverage, and CPS manages all claims, service coordination, and customer support throughout the program term.

Operationally, retailers simply attach the CPS warranty card to qualifying inventory at the point of sale or after delivery. Claims are handled directly by CPS, with the store retaining the option to service their own customers when desired. This structure allows retailers to confidently sell discounted appliances knowing there is support for future repair events, and helps convert more sales by reducing customer concerns about long-term reliability. CPS program trends show that retailers implementing this model often see improved inventory movement and higher gross profit per sale compared to stores that do not offer protection on scratch and dent or open-box items.

Core Program Components of CPS Scratch and Dent / Open-Box Appliance Coverage

  • Base Warranty Card – Provides 1 year of coverage starting day 31 after purchase for all eligible scratch and dent, open-box, refurbished, or used appliances.
  • Extended Term Upgrades – Customers can upgrade to longer-term protection plans (up to 5 years total) at or after the point of sale.
  • Dealer Service Option – Retailers with service departments can elect to handle eligible claims and retain repair revenue.
  • Flexible Attachment – Coverage can be attached at sale or through post-sale marketing, supporting both in-store and online transactions.
  • Claims Administration by CPS – All claims are managed by Consumer Priority Service, including service coordination and customer communication.
  • Coverage Across Inventory Types – Applies to new, scratch and dent, open-box, refurbished, and used appliances under the appropriate CPS program card.

Operational Workflow

Stage

What Happens

Inventory Sale

Retailer attaches CPS base warranty card to eligible product at time of sale

Customer Purchase

Customer receives warranty activation and coverage documentation

Protection Upgrade (Optional)

Customer can purchase extended coverage for additional years

Claim Filed

Customer initiates claim with CPS if a covered issue occurs

Service Coordination

CPS manages repair or replacement, retailer may participate in service

Key Features

  • Built-in protection for inventory without manufacturer coverage
  • Optional upgrades for extended terms
  • Dealer-first service participation model
  • Streamlined claims process managed by CPS
  • Designed to increase warranty penetration and profit on discounted inventory

What is included and excluded in CPS scratch and dent or open-box appliance coverage?

CPS scratch and dent or open-box coverage is designed to protect against real mechanical and electrical failures, not cosmetic, accidental, or environmental issues. Here’s what’s covered and what’s not:

What Does CPS Cover?

  • Mechanical and electrical failures that occur during normal household use
  • Covered parts and labor for repairs on functional components (motors, compressors, control boards, fans, pumps, sensors)
  • Service coordination and claims administration through Consumer Priority Service
  • Repair or replacement if the appliance cannot be economically repaired
  • Coverage applies to scratch and dent, open-box, refurbished, and qualifying used appliances under the appropriate CPS card

What Is Not Covered by CPS?

  • Cosmetic damage (scratches, dents, chipped paint, rust, or finish flaws)
  • Non-functional/accessory parts (handles, knobs, shelves, decorative trim)
  • Consumables and wear items (filters, light bulbs, belts, batteries, gaskets)
  • Accidental damage, misuse, or improper installation
  • Environmental/external damage (flood, fire, storms, power surges)
  • Pre-existing conditions or issues present before coverage began
  • Manufacturer recalls or service campaigns

How does the CPS claims process work for scratch and dent or open-box appliance coverage?

When a customer experiences a covered issue on a scratch and dent or open-box appliance, they initiate a claim directly with Consumer Priority Service by phone, web, portal, text, or chat. CPS reviews the claim, confirms coverage eligibility, and coordinates service through a qualified technician or allows the retailer to handle the repair if they have a service department.

CPS manages the entire process from claim intake to repair or replacement, communicating directly with the customer throughout. This structure reduces administrative workload for the retailer and ensures a consistent, customer-friendly experience—retailers only need to participate in claims if they choose to service their own customers.

Step

What Happens

Claim Initiation

Customer contacts CPS (phone, web, portal, text, or chat) to report the issue

Claim Review

CPS verifies eligibility, confirms coverage, and collects necessary details

Service Coordination

CPS assigns a technician or gives the retailer the option to service the claim

Repair or Replacement

Appliance is repaired or replaced based on coverage terms

Resolution

CPS communicates resolution to the customer and closes the claim

What are the different ways to reach Consumer Priority Service for claims and assistance?

CPS makes it easy to get help, whether you’re a customer, dealer, or service center. Multiple support channels are available for fast, real-world assistance across all warranty and coverage questions.

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

Service Centers

How does CPS coverage for scratch and dent or open-box appliances compare to manufacturer warranties and traditional protection plans?

Feature

Manufacturer Warranty

Traditional Protection Plan

CPS Scratch & Dent / Open-Box Coverage

Coverage Eligibility

Only new, unopened appliances

Usually new inventory only

New, open-box, scratch and dent, refurbished, and used appliances

Coverage Start

At purchase date

At purchase date

Day 31 after purchase for SND/open-box inventory

Term Options

Fixed (typically 1 year)

1-5 years, usually runs with OEM

1 year included, with optional upgrades to 5 years total

Claims Administration

Manufacturer service network

Third-party or retailer

CPS manages claims and service, dealer may participate

Dealer Revenue

Limited to product sale margin

Margin on qualified new inventory only

New revenue stream from discounted/aged inventory

Customer Experience

Limited support on non-new products

Little to no coverage on open-box/SND/used

Full support and claims process for all eligible inventory

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

  • Established and experienced provider—Consumer Priority Service (CPS) has operated since 1990 and is a long-standing partner to appliance retailers nationwide
  • Large-scale coverage—CPS supports over 60 million customers and has covered 75 million+ products, giving retailers confidence in operational capacity
  • Strong claims and service infrastructure—With over $450 million in claims paid annually and a network of 50,000+ servicers, CPS is equipped for high-volume dealer support
  • Extensive retail partnerships—CPS works with more than 10,000 appliance stores, from independents to large multi-location retailers
  • Factory-authorized and nationwide repair capabilities—CPS supports a nationwide service network including factory-authorized repair, ensuring broad coverage
  • U.S.-based support and long-term relationships—Retailers benefit from dedicated U.S.-based onboarding, support, and account teams
  • Broad product category support—CPS covers 60+ product types, allowing retailers to protect a wide range of inventory under a single program
  • BBB A rating—CPS is recognized as a credible and trusted warranty provider by retailers and consumers alike

CPS Scratch and Dent / Open-Box Coverage FAQ

Can CPS cover scratch and dent or open-box appliances without a manufacturer warranty?

Yes. CPS offers a dedicated base warranty card program designed for scratch and dent, open-box, refurbished, and used appliances, even when no OEM warranty exists.

How does the CPS base warranty for scratch and dent or open-box products work?

The CPS base warranty starts on day 31 after purchase and provides one year of coverage, acting as the initial protection for qualifying inventory.

Can customers purchase additional coverage beyond the base term?

Yes. Customers can upgrade to longer-term protection, extending coverage up to a total of five years for most products.

What types of appliances are eligible for CPS scratch and dent or open-box coverage?

Most major appliances—refrigerators, washers, dryers, dishwashers, ovens, and more—are eligible under the CPS scratch and dent/open-box program.

How do retailers attach the CPS warranty to qualifying inventory?

Retailers attach the warranty card at the point of sale, include it with product delivery, or enroll customers after purchase through CPS portals or batch uploads.

Who handles claims for covered failures?

Consumer Priority Service manages the entire claims process, including intake, verification, service coordination, and communication with the customer.

Can appliance stores service their own warranty claims?

Yes. CPS gives retailers the first right of refusal on service, allowing stores with repair departments to handle claims and retain service revenue when desired.

What does the CPS base warranty actually cover?

It covers mechanical and electrical failures of functional components due to normal household use, including parts and labor for repairs.

Are cosmetic issues covered under CPS scratch and dent/open-box warranties?

No. Cosmetic issues such as scratches, dents, paint, trim, or finish flaws are excluded from coverage.

How are customers informed about their warranty coverage?

Customers receive documentation at purchase or delivery detailing coverage terms, claim instructions, and CPS support contact information.

Does CPS offer post-sale marketing for warranty upgrades?

Yes. CPS can contact customers after the initial sale to offer extended coverage options, helping retailers recover missed attachment opportunities.

What happens if a customer files a claim?

CPS reviews the claim, verifies eligibility, coordinates service with a qualified technician or the retailer, and manages repair or replacement as needed.

Can CPS coverage be used for used or refurbished appliances?

Yes. The CPS SND/Open Box Card is designed to cover eligible used and refurbished appliances under the same structure.

Are there any inventory types not eligible for CPS coverage?

Some highly aged or non-functional inventory may not qualify; eligibility is determined by product condition and program rules.

How can appliance retailers get started with CPS scratch and dent or open-box coverage?

CPS scratch and dent and open-box warranty programs are designed for appliance retailers who want to offer real protection on discounted, non-new, or high-turn inventory. The program delivers new revenue opportunities, improved inventory movement, and a better customer experience by providing coverage where traditional warranties don’t apply. Retailers of all sizes can use CPS to monetize scratch and dent, open-box, refurbished, and used appliances with minimal setup and full claims administration handled by Consumer Priority Service.

To get started, retailers can reach out to CPS for onboarding, implementation support, and pricing details. The CPS team provides training, sales guidance, and ongoing support to help stores maximize warranty attachment rates and customer satisfaction.

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, from small shops to multi-location stores. If you want to see how this program fits your business, reach out to CPS for tailored guidance and an easy setup.

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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