You have to realize that when VW rejects the goodwill warranty that this is their first "offer". You can either accept it or reject it. Don't take it as first and final.
Of course they are going to start out by "low-balling" you. If you go away and pay to get your own engine fitted this is a win for them.
I'd go back to them and say that you reject their initial offer and please come back with something more reasonable (i.e. full cover for parts and labour). This is your offer back to them. This is called negotiation.
Now your case will be stronger if you have maintained the vehicle according to the maintenance schedule (12 months/15,000km whichever occurs first). If you haven't then VW could argue that the failure was (partly) due to poor maintenance.
This is the problem that I have with the whole $2k diagnostic up front only to reject the claim based on service history. If they were going to do that then they should have told you up front that it would be rejected and saved you $2k. In this case I'd be going them (or the dealer) for the $2k if they knew that there was no chance for goodwill repair then they should have been upfront with you before you started down this track.
2017 Tiguan Sportline - Tigger73's 162TSI Sportline
2016 Scirocco R, stage 1, 205kwaw (sold) - Tigger73's Scirocco R Build
2013 Tiguan 155TSI, stage 1, 144kwaw (sold) - Tigger73's 155TSI Build
2011 Tiguan 125TSI, Stage 2+, 152kwaw (sold) - Tigger73's 125TSI Build
You still have a tonne of leverage here. Now you can start twisting the shank and making noise on the VW social media sites. Twitter, Facebook etc while also following the more formal route. Make sure you let them know you have all the time and energy in the world to tell the world know how shonky the product is and how poorly they treated you. Mentioning specific service locations and dealers in public complaints tends to hit a nerve. Those businesses are very sensitive to reputation.
VW Demanding $2,000 diagnosis only to reject you on a point they were aware of before hand is unconscionable and if that happened you deserve the money back.
If you get jack of it and just want it fixed, perhaps start a thread on "Used 118 TSI Engine Swaps" and ask people here for their costs and mechanics. We'd all happily list or PM our experiences and recommendations. The demand for used engines is strong but the stupidity of drivers is stronger. There will be plenty of wrecked golfs out there with engines for sale.
Another alternative is getting quotes from an independent VW specialist to order new components and rebuild the engine (at lower cost: I've been quoted $3,000 to $5,000 ballpark for 2 cylinders + timing chain). A used CAVD swap could just be another ticking time bomb.
The dealer won't know what you are getting in regards to goodwill until the claim is put through.
Anytime something like this comes up i always translate it back to doctors/hospitals. When you go to the doctor, does he sit you down do all the diagnosis and then let you walk away for free? No. Does he know what kind of insurance coverage you have and what they will actually offer/compensate? No. Does he know your "service" history or need to comment on what lifespan can be expected from your internals? No.
Dealer/mechanics are simply doing their job and following procedures. All these muppets trying to explain how diagnosis should be done really need to stay in their seat and take their hands away from the keyboard. However as others have said, exhaust all your options in regards to goodwill. As long as there is no chink in your story, regarding maintenance, then you should come off much better than what has been offered. Social media, customer care, ACCC are all there for your use.
Volks Handy
Servicing - Repairs - Diagnostics - Mobile fault scanning/clearing - A/c work
10 years experience working for Audi/VW/Skoda
Now in Perth NOR, Western Australia.
Agree and if we are taking the doctor analogy another step what I've said is to check out your insurance cover before you head to the doctor so you know whether the first visit and any subsequent operations are going to be covered. It happens in the medical world with gaps, annual limits and exclusions. You can ring up your health insurance company and discuss treatment/operation upfront and they can tell you exactly what is getting covered and how much you're going to be out of pocket.
I know that the "standard" procedure at VW is for diagnosis first and then talk to the insurance guys (warranty dept), however for me this is backwards. If I'm going to be out of pocket $2k, I want to know whether my (goodwill) insurance is going to cover it before heading down the path of diagnosis. Otherwise you open yourself up to get raped and pillaged.
The problem is you're already committing to spend $2k for diagnosis not knowing whether this and/or the repairs is even going to be covered . It's a bad model and a recipe for people to get unnecessarily disenchanted with the brand if the outcome is not favorable. This could all be avoided if the conversation happened up front. There is no real reason why it can't - other than the process is already in place to run it backwards from a customer perspective.
2017 Tiguan Sportline - Tigger73's 162TSI Sportline
2016 Scirocco R, stage 1, 205kwaw (sold) - Tigger73's Scirocco R Build
2013 Tiguan 155TSI, stage 1, 144kwaw (sold) - Tigger73's 155TSI Build
2011 Tiguan 125TSI, Stage 2+, 152kwaw (sold) - Tigger73's 125TSI Build
Just an update: I've had my dealer-submitted good will claim for piston ring failure x2 rejected due to 'age of vehicle' (delivery date of Sep 2009). I've just spoken to VW Customer Care where no progress has been made. This was an international engine of the year in 2009. The issue was found in 2009; the age of the vehicle then was 1. The now-expired 2 years of extended warranty that I purchased in case things went boom was a waste.
Frankly it all seems to me that the cost of #dieselgate is going to kill all chances of assistance. To go from a car that I sung praises to my friends and family (many of whom now drive Golf's) to end up with dead TSI's and cheating TDI's is incredible. I'm sick of hearing about VW in the news with more scandals and I'm sick of the brand in general. I will be looking to take this further.
Contrary to other posts above, I can't complain about the dealer (FTG). They haven't charged me anything for diagnosis and provided a free loan car for a week (with a week's notice). Just a bit slow in returning phone calls.
In other news I've purchased an Audi A3 1.8T Quattro Ambition. Yes it's somewhat another Golf but the bigger/older engine design and DSG6 should prove to be more reliable, if a little thirstier.
Let's hope.
In summary, the car is out of warranty and someone has to pay for the work carried out. I don't see that any other brand franchised dealer would do it for free.
By law, the manufacturers have to keep the spare parts in stock for 8 years, so it's not unreasonable to expect that the life of the car is 8 years, in which case the engines that are failing and are close to be 8 years old don't have to get any goodwill repairs.
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