Just to chime in, if the car is sold before the warranty is up, they'll refund the balance.I guess the biggest question you must ask is what is the probability you will encounter a mechanical problem that costs more than $1,500 in the 4 years after your 3yr/36K B2B expires? Of course this provides you do not exceed the mileage limitation. Also, what does a similar warranty cost from a competitor?
Without the warranty, would you trade in the car after four years? If this $1,500 extended warranty permits you to keep the GTI for seven years, it may save you the cost of extra depreciation on that next car. But that is hard to estimate.
If you intend to keep the car for seven years, I do not think it would be a bad financial decision. But with any type of insurance, there is cost for peace of mind.
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.
No, it's just pure profit for the dealers. Best Buy does the same thing for electronics. Only suckers purchase it. Have a little more faith in your purchase/brand.
I guess the biggest question you must ask is what is the probability you will encounter a mechanical problem that costs more than $1,500 in the 4 years after your 3yr/36K B2B expires? Of course this provides you do not exceed the mileage limitation. Also, what does a similar warranty cost from a competitor?
Without the warranty, would you trade in the car after four years? If this $1,500 extended warranty permits you to keep the GTI for seven years, it may save you the cost of extra depreciation on that next car. But that is hard to estimate.
If you intend to keep the car for seven years, I do not think it would be a bad financial decision. But with any type of insurance, there is cost for peace of mind.
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.