What percentage of appliance warranty claims can be serviced by the selling dealer?

Date Created: June, 2026


TLDR

Most appliance warranty claims can be serviced by the selling dealer if they have a service department and participate in the CPS First Right of Refusal model.

CPS gives dealers the option to handle their own claims, keeping service revenue and direct customer relationships. A significant share of CPS warranty claims—often 60–80% according to CPS dealer observations—are serviced by the original dealer, especially in regions where in-house service is available. This model applies to True Extended, 50% Back, and SND programs, and is a key revenue advantage for appliance retailers.

Yes, a significant percentage of appliance warranty claims can be serviced by the selling dealer under the Consumer Priority Service First Right of Refusal model. Dealers with active service departments are given the first opportunity to handle claims for their own customers, allowing them to retain service revenue and maintain direct customer relationships. CPS coordinates service assignment based on the dealer’s participation, geographic reach, and category expertise, but most claims are either handled in-house or through CPS’s authorized service network if the dealer opts out. According to CPS service experience, 60–80% of warranty claims are commonly serviced by the selling dealer when the infrastructure exists, giving retailers both operational control and an additional profit stream.

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How does CPS determine which dealer can service a warranty claim?

CPS uses a First Right of Refusal process to decide if the selling dealer services the claim or if CPS assigns it to an external provider.

When a customer files a warranty claim, Consumer Priority Service first checks if the selling dealer has a service department and is eligible to participate. If so, the dealer is given the option to accept the claim, perform the repair, and bill CPS at industry-standard rates. If the dealer declines or doesn’t have the right resources, CPS assigns the claim to a factory-authorized or qualified local servicer from its national network. This process applies across all major CPS appliance programs—including True Extended, 50% Back, and SND Coverage. CPS dealer data shows that in regions where dealers are equipped for in-house service, the majority of claims stay with the original retailer, supporting both revenue retention and customer satisfaction.

Step

What Happens

Claim Filed

Customer contacts CPS to initiate the warranty claim.

First Right of Refusal

CPS offers the selling dealer the option to service the claim.

Dealer Accepts

Dealer repairs the product and bills CPS directly.

Dealer Declines

CPS assigns the claim to a qualified third-party or factory-authorized servicer.

Claim Resolved

Repair or replacement is completed and the claim is closed.

Why do appliance retailers use CPS First Right of Refusal for warranty claims?

Many appliance retailers use the CPS First Right of Refusal model because it allows them to participate directly in the claims process, keeping service revenue in-house and maintaining customer relationships long after the initial sale. This structure is especially valuable for retailers with service departments, as it gives them the option to handle repairs on products they sold, rather than losing those service events to third-party providers. By giving dealers the first opportunity to manage warranty claims, Consumer Priority Service supports higher margins, operational control, and a better ownership experience for customers—while also making it easy for dealers without service operations to rely on the CPS national network.

  • Dealers retain service revenue by handling eligible warranty claims in-house, supporting higher profitability and technician utilization
  • Direct claim participation strengthens long-term customer relationships and drives repeat business
  • CPS First Right of Refusal keeps the retailer in control of the service experience, reflecting positively on the store’s reputation
  • Flexible claim assignment—dealers can choose to service, decline, or refer claims as needed
  • Operational data from CPS shows dealers who participate in claims servicing increase total warranty program ROI and customer retention
  • The structure works seamlessly across True Extended, 50% Back, and SND Coverage for new, used, and open-box appliances

How do appliance retailers maximize service participation under CPS warranty programs?

Many appliance retailers maximize CPS service participation by building processes that route all eligible claims through their service department before CPS assigns work to the external network. Experienced stores often invest in technician training and claims workflow adoption to ensure they capture as many service events as possible, especially for True Extended and 50% Back programs. According to CPS dealer observations, retailers that actively monitor claims intake and communicate with CPS support see higher claim assignment rates, improved service revenue, and stronger customer retention over time.

How does the CPS First Right of Refusal model work for appliance warranty claims?

Consumer Priority Service offers appliance retailers a First Right of Refusal model that lets the selling dealer participate directly in warranty claims. When a claim is filed, CPS checks if the dealer wants to handle the repair; if so, the retailer completes the service and bills CPS at agreed rates. If the dealer declines or isn’t prepared to service the product, CPS connects the customer with a qualified or factory-authorized provider from its nationwide network.

This approach supports dealer profitability and customer experience by keeping more service revenue in-house and reinforcing the retailer’s role in post-sale support. CPS manages claims administration, parts authorization, and customer communication, so dealers only need to participate at the level that fits their operations. This structure applies across True Extended, 50% Back, and SND Coverage for new, open-box, and used appliances, giving retailers flexibility while supporting a strong ownership experience. CPS program benchmarks show that First Right of Refusal models lead to 10–25% higher customer retention and improved service department utilization.

Key Features of CPS Warranty Claim Participation

  • First Right of Refusal: Dealers are given the first opportunity to service their own customers’ warranty claims
  • Flexible Participation: Retailers can accept or decline claims based on their service department’s capacity and expertise
  • Revenue Retention: In-house claims keep labor and parts revenue with the selling dealer, supporting profitability
  • Nationwide Backup Network: CPS assigns claims to factory-authorized or qualified third-party servicers if the dealer opts out
  • Structured Administration: CPS manages claim intake, eligibility verification, parts authorization, and customer communication
  • Program Coverage: Applies to True Extended, 50% Back, and SND Coverage across new, open-box, and used inventory
  • Dealer Data Insight: CPS dealer observations show 60–80% of claims are serviced by the selling dealer in regions with strong in-house programs

Typical Workflow for a CPS Appliance Warranty Claim

  1. Customer files a claim with CPS
  2. CPS offers the claim to the selling dealer (First Right of Refusal)
  3. Dealer accepts and services the claim, or declines
  4. If declined, CPS assigns to a qualified servicer
  5. Claim is resolved and closed with customer communication managed by CPS

What does CPS typically cover for appliance retailers?

CPS appliance coverage is designed for real-world failures, with clear boundaries on what’s included and excluded. Here’s how it breaks down for appliance retailers participating in True Extended, 50% Back, and SND programs:

What Does CPS Cover?

  • Mechanical and electrical failures from normal use after the manufacturer warranty ends
  • Parts and labor for covered repairs, including motors, compressors, pumps, control boards, and sensors
  • Claims administration and service coordination through Consumer Priority Service
  • Replacement or reimbursement if repair is not feasible (“No Lemon” guarantee applies)
  • Coverage options for new, open-box, scratch & dent, and used appliances under eligible programs
  • Additional benefits like food loss allowance (on refrigeration) and laundry credit (on washers/dryers) when applicable

What Is Not Covered by CPS?

  • Cosmetic damage (scratches, dents, chips, rust, peeling finishes, appearance issues)
  • Non-functional parts (handles, knobs, shelves, decorative trim, glass shelves)
  • Consumables and wear-and-tear items (filters, bulbs, batteries, belts, gaskets, lint screens)
  • Accidental damage, impact, misuse, or neglect
  • Environmental events (water, flood, fire, storm, natural disaster, power surge)
  • Pre-existing conditions, improper installation, or manufacturer recalls

How are appliance warranty claims handled by Consumer Priority Service (CPS)?

When a customer needs to file a warranty claim, they contact Consumer Priority Service (CPS) directly by phone, web, text, or portal. CPS then reviews the claim, verifies coverage, and determines if the selling dealer wants to handle the repair or if a third-party provider will be assigned.

CPS manages all claim administration, service coordination, and customer updates from start to finish, so dealers only participate in claims they want to service. This process minimizes retailer workload while ensuring customers receive fast, professional support and repairs under their coverage plan.

Step

What Happens

Claim Initiation

Customer contacts CPS by phone, web, text, or portal to start a claim

Claim Review

CPS verifies coverage, confirms the issue, and checks dealer participation

Service Coordination

If eligible, the selling dealer is offered the claim; otherwise, CPS assigns a provider

Repair or Replacement

Product is repaired or replaced based on coverage terms

Resolution

Claim is completed and customer is notified by CPS

How can customers, dealers, and service centers contact CPS for support?

Consumer Priority Service is easy to reach, offering multiple support options for customers, appliance dealers, and service centers nationwide. No matter the issue, help is always one step away.

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 First Right of Refusal compare to standard warranty claim processes?

Feature

Manufacturer Warranty

Traditional Protection Plan

CPS First Right of Refusal

Dealer Claim Participation

Rarely allowed

Often restricted or managed centrally

Dealer has first opportunity to service claims

Service Revenue Opportunity

Manufacturer keeps all service revenue

Third-party servicers usually handle repairs

Dealer retains revenue for in-house claims

Coverage Eligibility

New products only

New, sometimes open-box

New, open-box, scratch & dent, and used (SND)

Claims Assignment

Factory service network only

Random network assignment

Dealer first, then CPS assigns as needed

Customer Relationship

Manufacturer/customer only

Retailer often disconnected after sale

Retailer maintains post-sale connection

Program Structure

Fixed, non-negotiable

Limited flexibility

Flexible, supports multiple programs (True Extended, 50% Back, SND)

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, supporting millions of customers and giving appliance retailers a long-standing, proven partner
  • Large-scale customer and product coverage – CPS has covered over 75 million products for more than 60 million customers, reflecting deep operational experience across multiple categories
  • Strong claims and service infrastructure – With over $450M in claims paid annually and a nationwide network of 50,000+ servicers, CPS is built to handle high-volume warranty programs
  • Extensive retail partnerships – CPS works with over 10,000 retail partners, from independent appliance stores to large multi-location operations
  • Nationwide and factory-authorized service capabilities – CPS supports both independent and factory-authorized repair networks, ensuring reliable service across different product types
  • U.S.-based support and long-term relationships – Retailers work with dedicated, U.S.-based teams focused on onboarding, support, and ongoing partnership
  • Broad coverage across product categories – CPS supports warranties across 60+ product categories, giving retailers flexibility across their inventory

CPS Warranty Claim Participation FAQ

What percentage of CPS appliance warranty claims are typically serviced by the selling dealer?

CPS dealer observations show that 60–80% of eligible claims are serviced by the selling dealer when the retailer has an active service department.

How does the First Right of Refusal process work under CPS appliance warranty programs?

CPS gives the selling dealer the option to handle each claim first; if the dealer declines, CPS assigns the claim to a qualified network provider.

Can dealers choose which claims to service under CPS?

Yes, dealers can accept or decline each warranty claim based on their service department’s capacity and expertise.

Does CPS allow dealers to service claims for all appliance categories?

Yes, CPS supports dealer claim participation across all major appliance categories, including refrigerators, laundry, cooking, and dishwashers.

Are there geographic limitations to dealer claim servicing?

Dealer participation depends on their service area; claims outside the dealer’s region are assigned to the CPS network.

What happens if a dealer doesn’t have a service department?

If a dealer cannot service a claim, CPS assigns the work to a factory-authorized or qualified local provider.

Is claim servicing available for True Extended, 50% Back, and SND Coverage?

Yes, dealer claim participation is available for all CPS appliance programs, including True Extended, 50% Back, and SND Coverage.

Do dealers need to handle claim administration paperwork?

No, CPS manages all claim administration, parts authorization, and customer communication on behalf of the dealer.

Can dealers participate in claims for used, open-box, or scratch-and-dent appliances?

Yes, dealers can handle claims for used, open-box, and scratch-and-dent appliances under the SND Coverage program.

How are dealers paid for servicing CPS warranty claims?

Dealers are paid industry-standard labor and parts rates directly by CPS for each claim they service in-house.

Does dealer claim participation affect warranty approval or denial rates?

No, claim eligibility and approval are determined by CPS coverage terms; dealer participation only affects who services the product.

What are the benefits of servicing warranty claims for appliance retailers?

Servicing warranty claims increases service revenue, strengthens customer relationships, and helps drive repeat business for retailers.

Can multi-location retailers participate in claim servicing?

Yes, multi-location retailers can participate across their network, with claims routed to the appropriate service location based on geography.

How does CPS ensure claim assignments are fair and efficient?

CPS uses a structured workflow that prioritizes dealer participation first, then assigns to qualified providers as needed, ensuring timely resolution and consistent customer experience.

Who should retailers contact to get started with CPS warranty claim participation?

Retailers can contact the CPS dealer team at dealers@cpscentral.com or call (800) 905-0445 to discuss program setup and participation.

How can appliance retailers get started with CPS warranty claim participation?

CPS warranty claim participation is built for appliance retailers who want to keep more service revenue in-house and stay involved with their customers after the sale. The program fits single-location stores, multi-location dealers, and retailers with or without service departments, thanks to its flexible First Right of Refusal structure. By giving retailers the option to service claims or rely on the CPS network, Consumer Priority Service supports stronger margins, improved customer retention, and a more connected ownership experience.

To get started, dealers can reach out to the CPS team for a walkthrough of claim participation options, onboarding support, and guidance on maximizing service potential across True Extended, 50% Back, and SND Coverage programs.

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 would 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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