Extended warranty..?

[LRich]

Hey everyone

I've had a quick look through the last couple of pages of threads and couldn't find any related to extended warranties (apologies if there is on that I've missed)

Now that my polo isn't too far away, I'm looking into insurance, finance etc.. Whilst discussing finance with the dealer, they suggested incorporating the extended warranty into my finance for approx $1000

What are people's thoughts on extended warranty? Is it worth it?

Thanks guys,
Laura

[Corey_R]

You have to be clear about what the "extended warranty" is. Many dealers have their own extended warranty, which has a whole host of terms and conditions, which sometimes include servicing beyond that of what the owners manual requires.

Then there is a "Volkswagen Factory Extended Warranty" (which is still underwritten by an insurance company - Allianz I believe) which has basically the same terms and conditions as your original factory warranty. $1000 sounds too cheap to be this one, which is why I mention this.

http://www.vwwatercooled.org.au/f15/...nty-28828.html <-- Check out this thread in the MKV Golf forum.
You can purchase this warranty at any time during the initial 3 year period. You can also purchase it from any dealer, and therefore it's best to get it from the one offering it at the best price at the time.

Whilst it will be cheaper to purchase it when you get the new car, if for no other reason than inflation, you have to think about whether you intend to keep the car for 6 years or not to benefit from it. If you sell the car, it might be a selling point, but probably not enough to cover its cost. Or what happens if your car is, god forbid, written off after a year. Then you've just paid for something you can't use. You could account for this in an "agreed value" insurance policy (which I'd strongly recommend regardless).

Anyway - just some thoughts

[triode12]

You have to be clear about what the "extended warranty" is. Many dealers have their own extended warranty, which has a whole host of terms and conditions, which sometimes include servicing beyond that of what the owners manual requires.

Then there is a "Volkswagen Factory Extended Warranty" (which is still underwritten by an insurance company - Allianz I believe) which has basically the same terms and conditions as your original factory warranty. $1000 sounds too cheap to be this one, which is why I mention this.

http://www.vwwatercooled.org.au/f15/...nty-28828.html <-- Check out this thread in the MKV Golf forum.
You can purchase this warranty at any time during the initial 3 year period. You can also purchase it from any dealer, and therefore it's best to get it from the one offering it at the best price at the time.

Whilst it will be cheaper to purchase it when you get the new car, if for no other reason than inflation, you have to think about whether you intend to keep the car for 6 years or not to benefit from it. If you sell the car, it might be a selling point, but probably not enough to cover its cost. Or what happens if your car is, god forbid, written off after a year. Then you've just paid for something you can't use. You could account for this in an "agreed value" insurance policy (which I'd strongly recommend regardless).

Anyway - just some thoughts

I'm sure you'd be able to get your money back if the car is written off as it is more an insurance policy.

[Corey_R]

It'd be good to have that clarified, as I've mentioned that as the reason I haven't already bought it for my car and their response was "alright" and not "you can be refunded in that instance"...

[LRich]

thanks for your help Corey and triode. The finance girl got the amount wrong - it's $2099, not $1000. thought it was too good to be true!
after reading the other thread, I think i'm going to hold off on getting the extended warranty for now and look into it further when the factory warranty runs out..
she did confirm though, that the extended warranty can be transferred, should you sell the ca,r or refunded.. think I'd want to check the PDS for the exact terminology though

[Corey_R]

Yep, it can be transfered

[pologti18t]

I suggest you put that $2000 away in a bank account. It would pay for a lot of repairs when the official warranty expires

[LRich]

just thought I'd provide an update on extended warranty pricing in case anyone else is considering purchasing this for their Polo..
After implying that I was hesitant to proceed given the $2K price tag, the dealer then offered me 20% off and explained this was the lowest she could go. I've called Chatswood Classic Cars (mentioned in the thread Corey recommended) and spoke to David who is offering me the 3 yr extended factory warranty for just over $1200! This is for a 77tsi manual, so I assume the price would go up for DSG and GTI, but it's still a great saving!!

[Transporter]

I suggest you put that $2000 away in a bank account. It would pay for a lot of repairs when the official warranty expires

I doubt that, but you're entitled to your opinion.

[Corey_R]

hehe - that took WAY longer than I thought for someone to reply too! Given that a DSG gearbox apparently still costs $4500 (plus labour) and that is perceived as one of the biggest concerns about modern VW's out of warranty, saving your $2k doesn't seem it'd be doing you much good

Btw, thanks for the update LRich