Extended warranty

[wai]

To put perspective on this I bet a insurer I would get cancer and they bet I wouldn't, they lost and the payout was staggering.. my view it is a cheap bet

It is like any bet or lottery. Yes, some do win, but the vast majority do not, otherwise they go out of business.

A warranty insurance broker is like a bookie. They give you odds that see them get the better return.

Like the quiz program The Chase in reverse where the chaser (the insurer) makes you an offer too good to refuse, only with warranty insurer is betting you will never be caught

[SilvrFoxX]

The problem with your lens on this is confusion of fairness with peace of mind... If you feel the gauntlet is worth running go for it.. If you don't end up with a 10 grand bill to replace the DSG big win... If you do don't bitch about **** warranty from the dealer cause it was free

[wai]

If you feel the gauntlet is worth running go for it.. If you don't end up with a 10 grand bill to replace the DSG big win... If you do don't bitch about **** warranty from the dealer cause it was free

Ah, but is it covered? This is where the exclusions and conditions come in.

Things like exclusions can be twisted every which way to allow the insurer a get out. For example, if you go on a drive with a club where you have and observation trial, this can be construed as "competition" and will be excluded. If you take a friend with you on your next interstate trip, it can be construed as using the vehicle for hire or reward.

It is just peace of mind, but will your expectations actually be met.

Oh, and the warranty from the dealer is not free. You are required to have it serviced twice as frequently, so over 3 years, you will pay an extra $2,000 plus. They also load up a whole lot of nonsense service.

[SK00LD]

I'm in the process of purchasing a used Scirocco R. Factory Warranty ends in August. Dealer is trying to sell me a dealership 'warranty' they call it "Mechanical Protection Plan'. The car has 10,000kms on it.

Warranty Details
- Price $1400 (negotiated down from $1995)
- Capped claims at $2000 (if more I pay extra)
- 3 years cover
- Must service every 6 months with them (289 fixed at 6 month interval + regular service at 12 month intervals for a minimum $440)

Are these sorts of policies worth it? I calculated it will cost me about $3000 more than if I service locally (as per recommended VW servicing intervals) over the 3 years.

I'm pretty sure the 6 Speed DSG has already got an extended warranty...

[tigger73]

I'm in the process of purchasing a used Scirocco R. Factory Warranty ends in August. Dealer is trying to sell me a dealership 'warranty' they call it "Mechanical Protection Plan'. The car has 10,000kms on it.

Warranty Details
- Price $1400 (negotiated down from $1995)
- Capped claims at $2000 (if more I pay extra)
- 3 years cover
- Must service every 6 months with them (289 fixed at 6 month interval + regular service at 12 month intervals for a minimum $440)

Are these sorts of policies worth it? I calculated it will cost me about $3000 more than if I service locally (as per recommended VW servicing intervals) over the 3 years.

I'm pretty sure the 6 Speed DSG has already got an extended warranty...

This looks like an "aftermarket" warranty which aren't worth the paper they're printed on. If you're going to get anything I'd get the genuine VW extended warranty which is done through Allianz if I remember right. It'll cost about the same (or a bit more) but will cover you for the big things like DSG replacement (which is why you'd take one of these policies out in the first place).

These dealer specific warranties are a bunch of crock and tie you into getting serviced back at the dealer who sold you the car. As you said it's going to cost you a lot more in the long run and you could have used that money for the better insurance and actually got the lvel of cover you wanted/needed.

[SK00LD]

Thanks for the quick reply! I can see myself spending many hours on this forum

I just called and told the dealer I wasn't interested, he instantly went to $1095 buy in fee. This tells me they are desperate and makes me not want to go for it. Along with your comments, I've decided a definite no on this one.

I inquired about the VW extended warranty through Allianz you mentioned. He told me of 2 that Allianz offer:

1. VW named, Allianz backed - Unlimited kms, unlimited claims etc. seems very close to factory warranty
2. Allianz named and backed - Max 25,000kms per year (I'll do max 20) rest is same as above (although I've heard there will be no guarantee on use of factory parts though, not sure if this should concern me or not....)

He's getting back to me with prices, but if I can grab one for <$2000 I'll probably go for it...

Another bonus with choosing between these is I have until August 1st to decide.

[tigger73]

Thanks for the quick reply! I can see myself spending many hours on this forum

I just called and told the dealer I wasn't interested, he instantly went to $1095 buy in fee. This tells me they are desperate and makes me not want to go for it. Along with your comments, I've decided a definite no on this one.

I inquired about the VW extended warranty through Allianz you mentioned. He told me of 2 that Allianz offer:

1. VW named, Allianz backed - Unlimited kms, unlimited claims etc. seems very close to factory warranty
2. Allianz named and backed - Max 25,000kms per year (I'll do max 20) rest is same as above (although I've heard there will be no guarantee on use of factory parts though, not sure if this should concern me or not....)

He's getting back to me with prices, but if I can grab one for <$2000 I'll probably go for it...

Another bonus with choosing between these is I have until August 1st to decide.

You should be able to get the "proper" warranty for around $2k (maybe a fraction more) if you shop around. As you can see there's a decent mark-up in these insurance products and some dealers are prepared to drop the price to get the business and make a quick couple of hundred $.

As you say if you go with this car you've got a couple of months to decide and you don't need to feel pressure or railroaded into doing anything today.... unless of course they come back with an offer that is too good to refuse

[SK00LD]

Awesome! Thanks again for your reply, if we ever meet in person I'll buy you a drink.

I'm dealing with some very nice blokes at Southern Classic Cars in Wollongong (NSW) who have worked hard to earn my business, above and beyond. hopefully they come back with a sweet deal

I'll post my results as soon as I know.

[SK00LD]

These are the two offered by 'Kerry' who was mentioned earlier in this thread. From reading the documents, I don't know what the difference is...I've read through the thread and it seems like the cheaper one is the same but they are not required to use VW parts?

36 months 75,000klm New Vehicle warranty from Allianz for $2830. 24 months is $2256

36 months 100,000klm Assured from Allianz for $2395. 24 months is $1995

I plan to use these prices to negotiate with my dealer and hope to get a better deal through them.

[blergen]

I read through the PDS of the Allianz 2 year VW branded extended warranty, and the Allianz generic 3 year extended warranty, and they're pretty much identical. Only real difference I could see if the VW branded one includes roadside assist. The Allianz warranty is the only one I'd go with. The Swann warranty requires you to service at a dealership, and all the other ones are pretty much worthless.

I have been told by a dealer that VW is going to re-introduce their own factory backed warranty in the next 12 months.