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

[LRich]

One more thing- David advised that there is no refund available should the car be written off. I'm going to request he send me the PDS for a thorough read and will then post my findings

[bigfoot]

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

depends on how long you are going to keep the car i.e. if you are going to sell it in 3 years there is no point paying for 5 year warranty.

if at the end of 3 years you decide to keep it, you can extend it then

[pologti18t]

depends on how long you are going to keep the car i.e. if you are going to sell it in 3 years there is no point paying for 5 year warranty.

if at the end of 3 years you decide to keep it, you can extend it then

Exactly... if you think that your Polo is likely to dump its gearbox within 5 yrs of ownership why the hell would you buy one?
The fact is that extended warranties usually have quite a few caveats on them (like regular servicing at a VW service centre for instance) that could make their cost even more than the 1200-1500 initial outlay.

[Sword_Dude]

Exactly... if you think that your Polo is likely to dump its gearbox within 5 yrs of ownership why the hell would you buy one?
The fact is that extended warranties usually have quite a few caveats on them (like regular servicing at a VW service centre for instance) that could make their cost even more than the 1200-1500 initial outlay.

You should find that there are 2 extended warranties one is a dealer warranty (usually cheaper) that requires all servicing to be done by the dealer but there is also a factory extended warranty that only requires servicing to be done by a qualified mechanic.

The 1st one is not much chop but if you can get the other warranty at a decent price (and you intend to hang on to the car for a while) it might be a good deal.

[PeterHBne]

You should find that there are 2 extended warranties one is a dealer warranty (usually cheaper) that requires all servicing to be done by the dealer but there is also a factory extended warranty that only requires servicing to be done by a qualified mechanic.

The 1st one is not much chop but if you can get the other warranty at a decent price (and you intend to hang on to the car for a while) it might be a good deal.

There is a thread on this in the 9n Pog & MkV Golf sections. I signed up at the 3 year mark. Cost about $1100. There is a specific dealer who does the best deal on price. And you can have it serviced by your choice of mechanic.

But yeah - buy it down the track, not now. By then, also, you will know if this model is prone to expensive problems.