I took my VW Passat in for a warranty repair recently and organised a 'free' loan car. Of course, I would have to pay for fuel usage which is fair. However, I was rather taken aback by the $3,000 insurance excess and was told it could be reduced to $500 if I paid $25.

I ended up paying the $25, but have any of you also come across the same and/or similar situation? Is this standard practice amongst VW dealers?