is it worth it?

bruinsh

Active member
Joined
Jan 15, 2010
Location
cream ridge NJ
TDI
2010 golf tdi
I am at 35,000 miles and my tdi just had its first birthday. Thinking about buying an extended warranty and was just wondering if its worth buying one or
Should I save my money for repairs when they happen? If I do buy it, who is the best? Anyone please chime in, thanks.
 

v-tec

Member
Joined
Jun 22, 2010
Location
toronto
TDI
2010 vw golf SW
my gsw tdi is under a year old and had to be towed to the dealer twice for EGR problems.

if you bought the car, then I would seriously consider buying it. if you leased it, just dump it after your lease is up.

I like the car alot, but I don't like it enough to keep bringing it in to the dealer or keep paying for repairs...thinking of going back to Honda...shhhhh :)
 

Joe_Meehan

Top Post Dawg
Joined
Sep 3, 2005
Location
Ohio USA
TDI
NB TDI, 2002.5, Silver
I am at 35,000 miles and my tdi just had its first birthday. Thinking about buying an extended warranty and was just wondering if its worth buying one or
Should I save my money for repairs when they happen? If I do buy it, who is the best? Anyone please chime in, thanks.

Well any car can have major expensive repairs.

The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some people will get nothing back and some will get a lot more than they pay. Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can.

Remember that the seller is out to make money and they get to write the rules and set the price. They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out.

Would you gamble with a car dealer who gets to set all the rules and knows all the odds?

Your decision has to do with the value of the piece of mind it gives you. If that is worth the cost then buy it. Don't expect it to cover everything however, most are written to keep cost down and exempt what they know will cost them money.

Good Luck
 

Bugdoc

Veteran Member
Joined
Sep 26, 2010
Location
Central WI
TDI
2010 JSW TDI 6M
My purchased 2010 JSW is 6 mos old with 9600mi. I got the VW extended warranty because I thought at the time I'd be keeping this one for awhile (not so sure now...build quality and N/V/H is a bit disappointing), and because of the HPFP issues. Won't be sure however about HPFP coverage if/until I get there.

First time I've gotten an extended warranty, and not sure how this will play out.
 

Klystron

Veteran Member
Joined
Mar 6, 2011
Location
Houston,Tx
TDI
2013 Passat SE 6MT
Just remember when buying an extended warranty make sure its underwritten by VW (or who every the vehicle MFG is). I've lost count how many dealerships I've seen that will sell you a extended warranty on a new car but its underwritten by some not name company that can become insolvent at anytime because it makes the dealership more profit.
 

enki

Veteran Member
Joined
Feb 27, 2011
Location
Bradenton, FL
TDI
2011 VW Golf TDI
Just remember when buying an extended warranty make sure its underwritten by VW (or who every the vehicle MFG is). I've lost count how many dealerships I've seen that will sell you a extended warranty on a new car but its underwritten by some not name company that can become insolvent at anytime because it makes the dealership more profit.
Does VWoA even do that? I just bought a 2011 Golf TDI, and during the paperwork section they tried to sell me the extended warranty. I declined until I could decide (and do some homework), but the warranty was NOT through VW. I forget the name of the third party, but I know it was one.
 

Dodoma

Veteran Member
Joined
Mar 30, 2004
TDI
2002 Jetta White
Because these car have new and untested technologies and their volume are low, it is prudent to buy expended warranties. By the time they expire, the repair industry would have caught up with fixing these cars other then the dealers. Just like when hybrid came, service provider like PepBoys did not provide service on those car but they do now. Moreover, by then this site would have solutions for any problem that you encounter.
 

Joe_Meehan

Top Post Dawg
Joined
Sep 3, 2005
Location
Ohio USA
TDI
NB TDI, 2002.5, Silver
Because these car have new and untested technologies and their volume are low, it is prudent to buy expended warranties.
That may have merit, but remember the insurance provider is no so foolish as to offer insurance on a car that may well have problems at any price less than the average cost of repairs plus profit for the seller and the insurance company.

In short, if the car is expected to be expensive for service, the insurance will include that in their pricing and limitations. That is, they may exempt any failure of those new and untested technologies or increase the price to cover any possible cost. :mad:
 

Dariof

Veteran Member
Joined
Oct 27, 2008
Location
So. Nv & So. Ca
TDI
2011 JSW TDI
That may have merit, but remember the insurance provider is no so foolish as to offer insurance on a car that may well have problems at any price less than the average cost of repairs plus profit for the seller and the insurance company.

In short, if the car is expected to be expensive for service, the insurance will include that in their pricing and limitations. That is, they may exempt any failure of those new and untested technologies or increase the price to cover any possible cost. :mad:
I am going to get my extended warranty through my car insurance, Geico.

For $100.00 per year, they will insure the car through 100K miles or 7 years.

I specifically asked them about the HPFP, and read the coverage prior to purchasing. (Yes, I am an attorney).

The HPFP would be covered under my Geico policy if the dealer denies claims or if the VW warranty has expired.

For $100 per year, it's a no-brainer "peace of mind."
 

enki

Veteran Member
Joined
Feb 27, 2011
Location
Bradenton, FL
TDI
2011 VW Golf TDI
I am going to get my extended warranty through my car insurance, Geico.

For $100.00 per year, they will insure the car through 100K miles or 7 years.

I specifically asked them about the HPFP, and read the coverage prior to purchasing. (Yes, I am an attorney).

The HPFP would be covered under my Geico policy if the dealer denies claims or if the VW warranty has expired.

For $100 per year, it's a no-brainer "peace of mind."

Are they charging you $100 per year over the course of 7 years, or are they charging you $700 right now to be covered for 7 years? Do the repairs have a deductible? Are there any major exclusions?
 

Joe_Meehan

Top Post Dawg
Joined
Sep 3, 2005
Location
Ohio USA
TDI
NB TDI, 2002.5, Silver
I am going to get my extended warranty through my car insurance, Geico.."
I would have to guess that getting coverage through your general auto insurance company will be the cheapest was to obtain it. There are less hands taking their cut of the deal.
 
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rambalu80

Veteran Member
Joined
Dec 29, 2009
Location
Katy TX
TDI
2011 VW JSW TDI DSG
I would have to guess that getting coverage through your general auto insurance company will be the cheapest was to obtain it. They are less hands taking their cut of the deal.
GEICO charges approximately $50.00 every six months and has a $250.00 deductible for each occurrence. Also, I believe you should be the 1st owner of the car and the car must be less than 15 months old and have less than 15,000 miles on it.
 

enki

Veteran Member
Joined
Feb 27, 2011
Location
Bradenton, FL
TDI
2011 VW Golf TDI
GEICO charges approximately $50.00 every six months and has a $250.00 deductible for each occurrence. Also, I believe you should be the 1st owner of the car and the car must be less than 15 months old and have less than 15,000 miles on it.
I just did a quick quote at Geico.com and they are quoting me $34.70/6 Months for the Mechanical Breakdown Insurance (2011 Golf TDI). I don't have Geico for anything right now though. The regular auto quote actually came in $100 less per 6 months for comparable insurance that I currently have with USAA. Do you know if you can get the mechanical insurance without the regular auto insurance? I have had USAA for years and am very, very happy with them. I might have to call them though to see if they will drop their rates a little. USAA only offers some prepaid mechanical insurance. 72 months/100k miles is about $1800, which seems excessive compared to Geico's, but I think it covers more and no deductible. But if I could get the Geico mechanical insurance alone, I might do that for $6/month.
 

Dariof

Veteran Member
Joined
Oct 27, 2008
Location
So. Nv & So. Ca
TDI
2011 JSW TDI
Are they charging you $100 per year over the course of 7 years, or are they charging you $700 right now to be covered for 7 years? Do the repairs have a deductible? Are there any major exclusions?
$100 per year for 7 years.

If you think about it, it's an incredible way for them to keep you as an insured.

If you cancel Geico, then you lose your extended warranty. But you can cancel at any time, and will have only paid for your extended warranty for each year you had Geico.

But most won't cancel for two reasons:

1. You lose your extended warranty coverage, and
2. Geico is one if the least expensive insurance's out there.

It's really a win-win situation going with this program, IMHO. :)
 

Dariof

Veteran Member
Joined
Oct 27, 2008
Location
So. Nv & So. Ca
TDI
2011 JSW TDI
I just did a quick quote at Geico.com and they are quoting me $34.70/6 Months for the Mechanical Breakdown Insurance (2011 Golf TDI). I don't have Geico for anything right now though. The regular auto quote actually came in $100 less per 6 months for comparable insurance that I currently have with USAA. Do you know if you can get the mechanical insurance without the regular auto insurance? I have had USAA for years and am very, very happy with them. I might have to call them though to see if they will drop their rates a little. USAA only offers some prepaid mechanical insurance. 72 months/100k miles is about $1800, which seems excessive compared to Geico's, but I think it covers more and no deductible. But if I could get the Geico mechanical insurance alone, I might do that for $6/month.
I know you can't. Their extended warranty is part of their regular insurance. But why would you keep your present carrier if Geico gives you same or better coverages at a lower rate?
 

enki

Veteran Member
Joined
Feb 27, 2011
Location
Bradenton, FL
TDI
2011 VW Golf TDI
I know you can't. Their extended warranty is part of their regular insurance. But why would you keep your present carrier if Geico gives you same or better coverages at a lower rate?
Excellent question. Honestly, the simple answer is out of loyalty. I know that might sound weird in this day and age and when it comes to saving money, but I have had USAA for a long time, and have always been very happy with their services. We have two auto loans, a credit card, a bank account and our two auto policies with them. We would have our homeowners as well, but we live in FL where no one insures :(.

In the course of my 12 years of driving with them, I have had five claims. Three were for no-fault accidents (two collisions and one comp) resulting in a total of the cars, and USAA took care of everything perfectly. They were quick with getting it resolved, and paid more then expected for the car. On one car, I put about 20k miles on the car from when I bought it and added over $2k in extra equipment, and they paid me $800 more for the car then what I bought it for nine months prior, as well as full purchase price for the added equipment. I also had someone slash the top of my convertible, and they paid for the replacement top in full, and the items that were stolen (sans radar detector which they explicitly do not cover in their terms). My wife had someone rear end her, and while Hertz covered it, USAA helped expedite things. All in all, USAA has paid out exponentially more money then they will ever collect from me on premiums for the rest of my life. I've never had a problem with them, and they have always been there for us.

Additionally, USAA pays out annual dividends to all members based on profitability and how much you've paid, which have been about $100 a year in the past (which does cut Geico's cost savings down to only ~$100).

So with that said, I am a loyal USAA "member".

While I have nothing against Geico, and for all I know they might be just as good, I also have no experience with them. I take that back, I had a scooter policy with them for about a year since USAA doesn't cover motorcycles in FL, and outside of paying the premium twice I had no other interactions. I do like their commercials though.

In the end, USAA has done very well by me, and it's very hard to say that about a company nowadays. Now I'm not crazy - if the cost difference was more significant I would definitely switch. But for a hundred or two a year, I just don't see it being worth it.

I did actually call USAA up earlier today. They currently don't offer a similar monthly mechanical insurance plan - just the one time payment for a fixed duration one. I might end up getting that, but I'll probably shop around first. Thanks for letting me know that Geico doesn't offer it as a stand-alone product, I doubted they did.
 

halfvolley

Active member
Joined
Nov 4, 2010
Location
Central NY
TDI
2010 JSW
Seems that everyone who has USAA gushes about them, so I wouldn't be too hesitant to stick with them. Being treated well when things go wrong is worth something. I am happy with Geico and they are certainly cheap, but from what I have heard about USAA I might very well switch if I could.
 

Dariof

Veteran Member
Joined
Oct 27, 2008
Location
So. Nv & So. Ca
TDI
2011 JSW TDI
Excellent question. Honestly, the simple answer is out of loyalty. I know that might sound weird in this day and age and when it comes to saving money, but I have had USAA for a long time, and have always been very happy with their services. We have two auto loans, a credit card, a bank account and our two auto policies with them. We would have our homeowners as well, but we live in FL where no one insures :(.

In the course of my 12 years of driving with them, I have had five claims. Three were for no-fault accidents (two collisions and one comp) resulting in a total of the cars, and USAA took care of everything perfectly. They were quick with getting it resolved, and paid more then expected for the car. On one car, I put about 20k miles on the car from when I bought it and added over $2k in extra equipment, and they paid me $800 more for the car then what I bought it for nine months prior, as well as full purchase price for the added equipment. I also had someone slash the top of my convertible, and they paid for the replacement top in full, and the items that were stolen (sans radar detector which they explicitly do not cover in their terms). My wife had someone rear end her, and while Hertz covered it, USAA helped expedite things. All in all, USAA has paid out exponentially more money then they will ever collect from me on premiums for the rest of my life. I've never had a problem with them, and they have always been there for us.

Additionally, USAA pays out annual dividends to all members based on profitability and how much you've paid, which have been about $100 a year in the past (which does cut Geico's cost savings down to only ~$100).

So with that said, I am a loyal USAA "member".

While I have nothing against Geico, and for all I know they might be just as good, I also have no experience with them. I take that back, I had a scooter policy with them for about a year since USAA doesn't cover motorcycles in FL, and outside of paying the premium twice I had no other interactions. I do like their commercials though.

In the end, USAA has done very well by me, and it's very hard to say that about a company nowadays. Now I'm not crazy - if the cost difference was more significant I would definitely switch. But for a hundred or two a year, I just don't see it being worth it.

I did actually call USAA up earlier today. They currently don't offer a similar monthly mechanical insurance plan - just the one time payment for a fixed duration one. I might end up getting that, but I'll probably shop around first. Thanks for letting me know that Geico doesn't offer it as a stand-alone product, I doubted they did.
It sounds like even though USAA may be a tad higher priced, there is plenty of value in their treatment of you over the years.

I would stick with them as well. :)
 

piney

Veteran Member
Joined
Dec 19, 2010
Location
Ft Lauderdale
TDI
2011 JSW-TDI/DSG
If I was eligible for USAA, I'd have it. I'm not a Vet, nor do I play one on TV, so I shop around. For the extended warranties, I use Intercontinental Warranty Service out of South Florida. Have had 5 or 6 of their warranties and have used their repair services, always covered and always easy to use.

With the TDI, I will likely get one due to the fuel line concerns with the system. For me, it is simply peace of mind. Their warranties run about 1/2 what dealer warranties run and you typically need to be a credit union member to buy from them. I don't recommend much but would recommend them.
 

zeuloa

Veteran Member
Joined
Jun 18, 2010
Location
USA
TDI
2010 Jetta SportWagen
If you do get one, make sure it's VWs. Many dealers sell 3rd party extended coverage as this is a huge money maker for them - kind of a retirement fund that is stashed away in the Bahamas for dealer owner!

Make sure you your dealer sells you a VW Extended Warranty or more than surely you will have troubles when repair time comes!
 

enki

Veteran Member
Joined
Feb 27, 2011
Location
Bradenton, FL
TDI
2011 VW Golf TDI
If you do get one, make sure it's VWs. Many dealers sell 3rd party extended coverage as this is a huge money maker for them - kind of a retirement fund that is stashed away in the Bahamas for dealer owner!

Make sure you your dealer sells you a VW Extended Warranty or more than surely you will have troubles when repair time comes!
My dealer didn't offer a VW extended warranty, only some third-party one. Can I get a quote directly from VW or do I need to go through a dealer?
 
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