Extended warranty anyone?

Hi all,

I'm a newbie and loving the forum. I just got a brand new 2012 Jetta TDI. I've been told by few mechanics (non of them were a diesel mechanic) that I should get an extended warranty on the car. Surfing the forum I noticed that dealing with extended insurance companies is never smooth. I'm at the point where I think I rather get myself a piggy bank.But what do you guys think?

Thanks in advance!

Piggy bank. Consumer reports rates the TDi a best buy and average in reliability.

Only way i would get one is if you think a big repair would cause serious financial hard ship.

For example, if you got a 8000 dollar repair , would you:

A. Not be able to come up the money without some serious searching or cashing out the kids college funds.

B. Although it may hurt, you would have enough in savings or available on credit cards to pay it.

If you answer A, then I might would get a warranty, if it's B, I would not.

If i did buy one, i would wait until the factory warranty is almost out, you will still be able to get one then.

True, if you do buy an extended warranty you normal car insurance company or a warranty backed by the auto manufacturer is the best. The third party warranties sold by the dealer are a high margin add on and a rip off.

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 lose 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

Piggy bank it is! Thank you guys. Your answers definitively helped in setting my mind.

I bought the extended VW warranty the day of sale. I did a bunch of research after and returned it today. The whole $1,872 is refunding to my loan.

I instead signed up for the MBI (Mechanical Breakdown Insurance) from GEICO. My dad used to work for them and said it is a great product. I am paying an extra $49.50 every 6 months for peace of mind. That warranty will cost me less than $500 for the duration of the 5 years/100K miles I am covered. What a great value. The only downside is the $250 deductible, but I can put $500 in savings for 2 possible claims and still put almost a grand in my pocket. Then, when I don't make a claim, I can move the other $500 from my one pocket to the other.

The only things not covered are the normal wear items, belts, hoses, brake pads/rotors, tires. Look into it, it is so cheap.

fahrfrompuken said:

I bought the extended VW warranty the day of sale. I did a bunch of research after and returned it today. The whole $1,872 is refunding to my loan.

I instead signed up for the MBI (Mechanical Breakdown Insurance) from GEICO. My dad used to work for them and said it is a great product. I am paying an extra $49.50 every 6 months for peace of mind. That warranty will cost me less than $500 for the duration of the 5 years/100K miles I am covered. What a great value. The only downside is the $250 deductible, but I can put $500 in savings for 2 possible claims and still put almost a grand in my pocket. Then, when I don't make a claim, I can move the other $500 from my one pocket to the other.

The only things not covered are the normal wear items, belts, hoses, brake pads/rotors, tires. Look into it, it is so cheap.

Click to expand...

Many insurers have this, and it's what I recommend... for one they're able to sell them at a lower overhead, and second, they're insurance companies, not some fly-by-night paper is worthless even though you bought it from a dealer type setup... they will most likely be around over the term of the contract, also "Insurance" policies are regulated... "warranty" are really "Service Contracts", and therefore don't get as much regulation.

fahrfrompuken said:

I bought the extended VW warranty the day of sale. I did a bunch of research after and returned it today. The whole $1,872 is refunding to my loan.

I instead signed up for the MBI (Mechanical Breakdown Insurance) from GEICO. My dad used to work for them and said it is a great product. I am paying an extra $49.50 every 6 months for peace of mind. That warranty will cost me less than $500 for the duration of the 5 years/100K miles I am covered. What a great value. The only downside is the $250 deductible, but I can put $500 in savings for 2 possible claims and still put almost a grand in my pocket. Then, when I don't make a claim, I can move the other $500 from my one pocket to the other.

The only things not covered are the normal wear items, belts, hoses, brake pads/rotors, tires. Look into it, it is so cheap.

Click to expand...

Thanks for the post. I had no idea insurance companies offer such things.

fahrfrompuken said:

I bought the extended VW warranty the day of sale. I did a bunch of research after and returned it today. The whole $1,872 is refunding to my loan.

I instead signed up for the MBI (Mechanical Breakdown Insurance) from GEICO. My dad used to work for them and said it is a great product. I am paying an extra $49.50 every 6 months for peace of mind. That warranty will cost me less than $500 for the duration of the 5 years/100K miles I am covered. What a great value. The only downside is the $250 deductible, but I can put $500 in savings for 2 possible claims and still put almost a grand in my pocket. Then, when I don't make a claim, I can move the other $500 from my one pocket to the other.

The only things not covered are the normal wear items, belts, hoses, brake pads/rotors, tires. Look into it, it is so cheap.

Click to expand...

That's interesting. I have Geico too and had no idea they offer this.

Geico MBI

fahrfrompuken said:

I bought the extended VW warranty the day of sale. I did a bunch of research after and returned it today. The whole $1,872 is refunding to my loan.

I instead signed up for the MBI (Mechanical Breakdown Insurance) from GEICO. My dad used to work for them and said it is a great product. I am paying an extra $49.50 every 6 months for peace of mind. That warranty will cost me less than $500 for the duration of the 5 years/100K miles I am covered. What a great value. The only downside is the $250 deductible, but I can put $500 in savings for 2 possible claims and still put almost a grand in my pocket. Then, when I don't make a claim, I can move the other $500 from my one pocket to the other.

The only things not covered are the normal wear items, belts, hoses, brake pads/rotors, tires. Look into it, it is so cheap.

Click to expand...

Another plus for this product. I got it on my 09 JSW and it costs me $38.00 every 6 months. So far it has cost me $266.00 and gives a lot of peace of mind, especially since I'm now outside my 3/yr 36K coverage and only have my power train warranty still in effect.

Interesting. I purchased the extended warranty from dealership but it's a fidelity contract. I think something extending man. is good but this was expensive.

Those that have gone through their insurance company 1. Which companies offer (called mine LIB MUT and they don't offer) 2. Premium costs 3. Deductible (I read 250 per claim)

Thanks.

My dealer offered me multiple offerings for an extended warranty - most of them adding ~$100 to my monthly payment. I declined them all....taking my chances with what VW offers. I've never believed in 'extended warranties' on just about anything.

My dealer threw in the gold plus for like 7 years and 100k. On my contract it was like $650 and my trade was valued for an extra $650 so totaled the agreed price. Has 0 deductible for any covered repair.

hawleyrw said:

My dealer offered me multiple offerings for an extended warranty - most of them adding ~$100 to my monthly payment. I declined them all....taking my chances with what VW offers. I've never believed in 'extended warranties' on just about anything.

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I did the same. The guy almost fell off his chair when I said I don't want any extended warranty. I guess he's not used to hearing "no"

wannaskoda said:

I did the same. The guy almost fell off his chair when I said I don't want any extended warranty. I guess he's not used to hearing "no"

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Let's hear it for guys from Queens!!! LOL

Which dealer was it?

C.

Corvus said:

Let's hear it for guys from Queens!!! LOL

Which dealer was it?

C.

Click to expand...

Sunrise Volkswagen in Lynbrook

The VW warranty is the one I would stick with. I would buy it from troy at FD warranty (google it). He works for a dealership in MA and sells the warranties for a great price. I got one for my Audi from him and will get one for my VW as well. I would recommend waiting until your car has a few miles less that 10k on it. The warranty covers your car for 7 years or 100k miles from when purchased (shorter terms available as well). The price on the warranty is the same until the car reaches 10000 miles, so if you do it right you can get coverage for 7 years from the purchase date and 109999 miles on the odometer.

wannaskoda said:

Hi all,
I'm a newbie and loving the forum. I just got a brand new 2012 Jetta TDI. I've been told by few mechanics (non of them were a diesel mechanic) that I should get an extended warranty on the car. Surfing the forum I noticed that dealing with extended insurance companies is never smooth. I'm at the point where I think I rather get myself a piggy bank.But what do you guys think?
Thanks in advance!

Click to expand...

The dealer I bought my car at gave me a decent deal on a platinum 5 yr/100k VW Drive Easy package, so I got that. From what it sounds like, I may break even, but we'll see...

I got the vw platinum package with mine for $1200 but covers everything. One full front and rear brake job, and one key a year, plus so much more. Covered till 80k or 5 years after factory warranty. I couldnt beat the deal so I did it.