Anybody know how the prorated refund on CarMax extended warranty works?

EnlightenedOne · 11-01-2013, 05:38 PM

Just wondering if anybody on here is familiar with how the prorated refund works if you cancel a CarMax "MaxCare" extended warranty. I assume it is based on mileage but am not sure how the mileage factors into the refund amount. Anybody have experience with this? I tried to call directly which is of course the best way to find out but turns out they are already closed and not open again until Monday so just thought I'd check on here in the meantime.

EnlightenedOne · 11-01-2013, 05:51 PM

Never mind... I found it. Posting the info here in case anybody else ever needs to know.

The prorated refund is calculated by first determining the percentage of miles and months that you have used out of the overall contract.

Once you have determined the two percentages (mileage used and months used), you take the higher of those percentages. The opposite of that percentage is then the amount you are owned from your original warranty price.

Example, if you determine that you have used 7% of your miles and 8% of the months in your contract then you would use 8%. Take the opposite of 8% so 92% and multiple your original contract price by it. If you paid $1000 for your warranty then you are due a refund of $920, minus a $30 service fee. So total refund of $890 in this example.

11-01-2013, 05:38 PM	#1
EnlightenedOne Second Lieutenant 45 Rep 278 Posts Drives: 2024 M240i xDrive Join Date: Jun 2013 Location: UT iTrader: (0)	Anybody know how the prorated refund on CarMax extended warranty works? Just wondering if anybody on here is familiar with how the prorated refund works if you cancel a CarMax "MaxCare" extended warranty. I assume it is based on mileage but am not sure how the mileage factors into the refund amount. Anybody have experience with this? I tried to call directly which is of course the best way to find out but turns out they are already closed and not open again until Monday so just thought I'd check on here in the meantime.
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11-01-2013, 05:51 PM	#2
EnlightenedOne Second Lieutenant 45 Rep 278 Posts Drives: 2024 M240i xDrive Join Date: Jun 2013 Location: UT iTrader: (0)	Never mind... I found it. Posting the info here in case anybody else ever needs to know. The prorated refund is calculated by first determining the percentage of miles and months that you have used out of the overall contract. Once you have determined the two percentages (mileage used and months used), you take the higher of those percentages. The opposite of that percentage is then the amount you are owned from your original warranty price. Example, if you determine that you have used 7% of your miles and 8% of the months in your contract then you would use 8%. Take the opposite of 8% so 92% and multiple your original contract price by it. If you paid $1000 for your warranty then you are due a refund of $920, minus a $30 service fee. So total refund of $890 in this example.
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