Extended "Factory" Warranty - is it worth it?

[alloyds]

Hi all,

My Polo TSI (6sp manual) is just about up to the end of its three year warranty.

Dealer has offerred me an extended two year warranty. RRP is around $2300 but they are going to offer a significant discount.

What is the thinking on extended warranties? Are there bits that could (or are likely to) fail in the next couple of years that make insurance like that worth while?

I've only done about 20,000kms...

[AC74]

Hi all,

My Polo TSI (6sp manual) is just about up to the end of its three year warranty.

Dealer has offerred me an extended two year warranty. RRP is around $2300 but they are going to offer a significant discount.

What is the thinking on extended warranties? Are there bits that could (or are likely to) fail in the next couple of years that make insurance like that worth while?

I've only done about 20,000kms...

Wow, only 20 thou in 3 years??? No wonder they're keen to sign you up for an extended warranty! Another 2 years at that rate and you'll have a car that has only ~35 thou on it and has been serviced on average every 7000km. Considering they expect you to do at least 45 thou in 3 years based on their factory warranty it's a relatively safe bet for your dealer. I'd be turning the screws pretty hard on them for a REAL discount, in the range of 50%++, or tell 'em they're dreamin. If something went drastically wrong with your car in the next 12-18 months you could make a VERY strong argument for them to fix it as a 'good will' warranty job due to the low kays (assuming you've got a good service record and haven't obviously abused or neglected it).

BTW, I've just clicked over 10,000K in 4 months!

[bizarre]

it will mean that you will need to get (approved) service on your car for the next 2 years.
No do it yourself tune ups

The main things I guess are gearbox and motor.

From reading this in the SMH today, it looks like your gear box is covered for another 2 years anyway

"Late last year, Volkswagen Australia extended the warranty on all its transmissions, including the DSG gearboxes."
Volkswagen recall extended

As long as it is "factory" as in no caps on claims, and if they reduce it substantially (50%???) then I would say it is ease of mind

If you are going to keep the car for another 2 years - you are going to loos e a LOT more than $2k in depreciation in the next year alone

[shauno]

The VW 'factory' extended warranty doesn't require you to take your car to VW for servicing - only that they use genuine parts.

It's a peace of mind thing - eg in case your engine blows up, etc.

Just make sure it's the genuine VW warranty (read the PDS) & it's underwritten by Allianz.

[Mikefc]

I bought my Allianz branded bumper to bumper 3 year extended warranty for $1400. Thats the price u should be looking at. If u just want to insure the engine and drivetrain then I was quoted $990

[gavs]

I'm going against the grain here and saying save your money. You are covered under Australian Consumer Law (ACL) that stipulates any product that you buy must remain in a satisfactory working condition, fit for purpose for a reasonable timeframe, I.e you would expect a car that drives 7000km a year to blow an engine after 4.5 years, if it does you will have grounds to contest the repair in court.

[ecks]

BTW, I've just clicked over 10,000K in 4 months!

I did 50,000 in 8 months haha

[shauno]

I.e you would expect a car that drives 7000km a year to blow an engine after 4.5 years, if it does you will have grounds to contest the repair in court.

I got a new mechatronic unit, covered by extended warranty - dealer handled everything, didnt even need to do the claim paperwork.

I imagine the 'taking them to court' method is longer & more expensive...

[gavs]

Not really, if you're in the right (and flogs contesting speeding fines don't get in the way) there is a very good chance of winning before even getting to court, but the first point of call needs to be consumer affairs.