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$1500 for 7 year 75k Mile Warranty worth it?
- Thread starter nearsite00
- Start date
nearsite00
Ready to race!
Ok so here is an update. I went back to cancel the extended warranty and they offered to lower it to 1300, so I kept it and have 60 days to cancel. I can also cancel at any time and get a prorated refund.
The warranty is through VW and I can use any VW dealership as well as get a replacement car if my car ever needs repair. I did just purchase the car new at a bay area dealership for 28K OTD with 0 down and 0% financing. It added $16/month to my monthly which is $488/month total which includes the extended warranty.
I'm still really on the fence at this point, not sure if I want to keep it or cancel it.....
The warranty is through VW and I can use any VW dealership as well as get a replacement car if my car ever needs repair. I did just purchase the car new at a bay area dealership for 28K OTD with 0 down and 0% financing. It added $16/month to my monthly which is $488/month total which includes the extended warranty.
I'm still really on the fence at this point, not sure if I want to keep it or cancel it.....
Just to chime in, if the car is sold before the warranty is up, they'll refund the balance.
Baldeagle
Ready to race!
Seven years is a long time. How many cars does anyone know that went for four years after the B2B ended with ZERO problems? Even the most reliable cars generally have one or two minor issues that cost about $300 per repair (two hours of labor and $100 for parts). And as much as we all love our GTIs, we all know they are not THE most reliable cars on the road.
So realistically you will probably spend at least $600 for repairs in years four through seven. If this $600 assumption seems reasonable and those expected repairs are fixed for free under your extended warranty, doesn’t that reduce your net cost from $1,300 to $700? The odds are extremely high you will get some use out of it.
So realistically you will probably spend at least $600 for repairs in years four through seven. If this $600 assumption seems reasonable and those expected repairs are fixed for free under your extended warranty, doesn’t that reduce your net cost from $1,300 to $700? The odds are extremely high you will get some use out of it.
elwood1
Ready to race!
I bought an extended warranty because I plan to keep the car 5 years and I do about 20,000 miles per year. My warranty goes to 100,000 miles. Since my previous VW, many many years ago, had many expensive things go wrong, I am sure that over the 5 years, I will save money. And if I don't, for a few bucks a month, I have peace of mind.
Shini
Go Kart Champion
Yeah but how many of those problems wouldn't have been covered by the powertrain?
Does the OP plan on keeping the car 7 years?
I bought the wheel/tire protection, and something that included rental car coverage...it was originally like $5/mo for them to add it, negotiated down to .50 cents. Cost more to have rental coverage on my insurance with esurance and I get the added benefit of the wheel/tire protection. Score.
Always negotiate that stuff, play hard ball, if it seems like it's a lot, and it's something you can get through your insurance company anytime you want, or can be bought later, I wouldn't do it unless the deal is just REALLY juicy..
ElectricEye
Autocross Newbie
Yeah, but electronics are electronics.
They are not composed of multitudes of moving parts.
They pretty much either fail or they don't.
Cars can have suspension issues, electrical issues, exhaust issues...
ElectricEye
Autocross Newbie
Don't forget, if one problem happens shortly after another.
I've owned used cars that I'd drop $300.00 on one month, $500.00 two months later...
A couple of costly failures can get you to $1500.00 in no time.
nearsite00
Ready to race!
One of the issues I see is that there is a $100 deductible for each issue, which indirectly jacks up the price of the warranty.
nouse4aname
Go Kart Champion
Yeah that's not so great. If it was 100,000 miles it would be a decent deal.
It will either pay for itself down the road or it won't, obviously if companies continue to sell them they are usually on the winning end.
If you do cancel it though don't expect to see the money, VW will send a pro rated check to your finance company and they will take it off your balance, so you would make 3 less payments if you pay 500 bucks a month (minus whatever they take for the few weeks you use it).
If you do cancel it though don't expect to see the money, VW will send a pro rated check to your finance company and they will take it off your balance, so you would make 3 less payments if you pay 500 bucks a month (minus whatever they take for the few weeks you use it).
nouse4aname
Go Kart Champion
Those are usually written so they run concurrently with the factory warranty so if you cancel it even just 1 year in you'd lose that pro-rated amount. Depending on state law/policy itself you might have a 30 day cooling off period or some such to get a full refund though.