Wednesday, 28 April 2021

Carvana Extended Warranty Review (2021)

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Car driving down the road
Carvana Extended Warranty Review
In Our Opinion:
Carvana offers low-cost, exclusionary extended warranty contracts, but service can be lacking compared to top competitors.
Industry Standing:
Coverage:
Affordability:
Customer Service:
Pros:
Low cost
Easily purchased when you buy a car through Carvana
Cons:
Spotty customer service
Only one coverage level
Poor reputation among mechanics
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Carvana is known for its vehicle vending machines and online used-car shopping experience. The retailer also offers a Carvana extended warranty designed to provide peace of mind by paying for unexpected breakdowns that may occur after you buy your car.

Not all extended warranties are worth it. Before purchasing a vehicle service contract, be sure you understand what is covered, how coverage works, and what current customers have to say about the quality of service. We’ve reviewed many of the best extended car warranty companies, and in this article, we’ll show you how Carvana compares to the competition.

It’s always a good idea to compare your options from a number of providers. You can start comparing free quotes from several top-rated companies below.

Top Extended Warranty Companies
We reviewed the best extended auto warranty providers, and here are our top picks. 
Best Overall Best for Used Cars Most Affordable
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Endurance CARCHEX CarShield
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Get Quote Get Quote Get Quote
(877) 374-1840 (866) 254-0205 (800) 563-2761
     

Carvana Extended Warranty: What You Need To Know

Carvana was founded in 2013 and is headquartered in Tempe, Arizona. It has quickly grown into one of the largest online automotive dealerships and has multi-story car “vending machines” throughout the country.

Like many dealerships, Carvana offers financial products as well as vehicles. You can purchase guaranteed asset protection (GAP) insurance as well as extended auto warranties from Carvana.

Carvana Extended Warranty Coverage

All Carvana vehicles come with a 100-day/4,189-mile limited warranty as well as a seven-day money-back guarantee. These offers are designed to ensure that Carvana customers don’t end up with a lemon.

However, even the best-maintained vehicles can experience an unexpected breakdown as they age. At an additional cost, Carvana customers can purchase CarvanaCare, a vehicle service contract similar to the manufacturer’s warranty.

CarvanaCare contracts promise to pay the cost of any covered repair, should the vehicle break down during normal use. This means damages that are the result of an accident or improper maintenance are not covered.

There is only one level of Carvana extended warranty coverage and it is exclusionary, which means that only parts that aren’t covered are stated in the contract. Examples of excluded components are:

  • Glass
  • Bumpers
  • Upholstery
  • Collision damage
  • Cosmetic damage
  • Maintenance items like oil changes and tire rotations
  • Wear-and-tear parts like brake pads and windshield wiper blades

Other exclusions may apply. Be sure to read your contract carefully before signing. Your offer will depend on your particular vehicle, and CarvanaCare may not be available for all Carvana vehicles, depending on their model, age, and mileage. Contracts can last up to five years or 90,000 miles total.

In addition to paying for the cost of certain repairs, Carvana extended warranty contracts also include roadside assistance reimbursements for towing, battery jump-starts, flat tire assistance, locksmith services, and fuel delivery.

Carvana Extended Warranty Cost

Extended car warranty costs will depend on your vehicle’s age and mileage. Prices may also vary from state to state. Based on customer reports, you can expect to pay around $100 per month for a Carvana extended warranty.

Carvana Reviews

Carvana is accredited by the Better Business Bureau (BBB), from which it holds an A+ rating. In the last three years, it has received just under 1,500 customer complaints through the BBB. This is a relatively low number of complaints given the size of the company.

However, when it comes to CarvanaCare contracts, it is more helpful to consider the reputation of SilverRock, the company that administers all Carvana extended warranty contracts. At the time of publication, SilverRock has an accredited B rating from the BBB. It has received just over 200 customer complaints in the last three years.

Most customer complaints involve difficulty getting Carvana to pay out claims and receiving damaged vehicles. While Carvana has a comprehensive inspection process, some vehicles appear to slip through the cracks. Here are a few examples of what customers have to say:

“I went to the auto shop Carvana told me to go to. When I got there, they turned me away because Carvana [warranty coverage] is too difficult to deal with.” – Shannon W. via BBB

“They typically only pay for services at cheaper service centers, which excludes dealerships, without approval and a copay, and the claims to cover the costs can take awhile.” – Garth T. via BBB

“I’ve had enough with the warranty company. They never cover anything – always an excuse here and there.” – Michael L. via BBB

While Carvana has a high BBB rating, it has a low BBB customer review score, which stands at 1.45 out of 5 based on over 850 reviews at the time of publication. Again, this is a somewhat small number given the large volume of business Carvana conducts. SilverRock has an even lower customer review score of 1.23 out of 5 based on more than 200 reviews.

On review site Trustpilot, Carvana fares somewhat better, with a score of 3.6 out of 5.0 based on more than 3,500 reviews at the time of publication. Happy customers mention the low price of the extended warranty and the easy purchase process.

“The extended warranty is unbelievable at 90,000 miles … for $1,000. Keep this up, and [Carvana] will be No. 1 in the world of car buying.” – Tony T. via Trustpilot

How Do Carvana Warranties Work?

You must purchase a Carvana extended warranty before your scheduled delivery or pickup, but afterward, you can cancel it at any time for a prorated refund (provided you have not yet filed a claim).

When you experience a breakdown, you can take your vehicle to any mechanic certified by the National Institute for Automotive Service Excellence (ASE®) for repairs. There is a $50 deductible with most shops, though this is waived if you use a preferred repair shop. Contact SilverRock to learn about the preferred shops in your area. This is likely to include National Tire and Battery (NTB) and Monro Auto Service and Tire Centers.

If your repair is authorized, SilverRock pays the repair facility directly, minus your deductible.

Final Thoughts: Carvana Extended Warranty

Based on customer reviews, the Carvana extended warranty can be very inexpensive. However, the claims service reputation is spotty, and Carvana only offers one level of coverage. According to customer reports, there are many repair shops that will not even deal with SilverRock because of the hassle on their part. It may be wise to consider a contract with a different provider or skip the extended warranty altogether.

Our Top Picks for Extended Warranty Coverage

Purchasing extended warranty coverage can be a good idea even if the Carvana extended warranty is not the right choice for you. Consider contracts from two of our top recommended providers: CARCHEX and CarShield. You can compare these providers directly in our CARCHEX vs. CarShield review.

CARCHEX: Best for Used Cars

CARCHEX is one of the best-regarded extended auto warranty providers. It is endorsed by companies like Kelley Blue Book, CARFAX, and Edmunds.com. The company boasts an A+ rating and accreditation from the BBB.

This provider is also one of the best if you have an older vehicle with many miles on it. CARCHEX offers five levels coverage, which can cover your car up to 250,000 miles. You can find CARCHEX extended warranty contracts for many luxury brands as well, and at a low cost. On average, CARCHEX plans cost around $100 to $200 per month of coverage. 

Learn more by reading our full CARCHEX review, and get a free CARCHEX quote below.

Best for Used Cars

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Get Quote

(866) 254-0205

Top-rated provider with unmatched customer service and affordable coverage

CarShield: Most Affordable

CarShield contracts offer high level coverage at a relatively inexpensive cost. We found that exclusionary, bumper-to-bumper extended warranty coverage from CarShield can cost as little as $83 a month, which is one of the lowest prices we’ve seen in our industry research.

There are six coverage options from CarShield, which range from basic powertrain warranties to exclusionary contracts. There are also vehicle service contracts available for motorcycles and ATVs, which few other providers offer. With its range of plan options and budget-friendly pricing, CarShield has quickly become one of the most popular providers on the market.

You can get more information in our comprehensive CarShield review and click below to see how much a CarShield extended warranty would cost for your vehicle.

Most Affordable

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Get Quote

(800) 563-2761

Well-known provider that offers great coverage with great pricing

Original article: Carvana Extended Warranty Review (2021)



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