New TDI owner - 2010 Golf 4dr DSG, extended service plan?

Hi all,

Great forum here, I've been reading it for years before I finally registered. My first post is about the new purchase, a 2010 Golf TDI, 4dr, with the DSG, xenons & sunroof.It's got 12 miles on it, 7 of which were my test drive.

I pick it up Wednesday, and I still have the option to get the $2762 extended service plan. I normally dislike warranties, I'm a rather competent mechanic and find it's usually faster to fix it myself than take it to a shop and get a ride home, etc. But the dealer claims the cost of the extended service plan will be refunded if it's not spent after 7yrs/70k.

So what's the recommendation of the forum, should I go with the extended plan?

I got the extended warranty for $500, but paid full msrp on the car. It was the only place they were willing to budge.

I think its worth it, its fairly well explained, so you just have to decide for yourself.

mcneil said:

Hi all,

Great forum here, I've been reading it for years before I finally registered. My first post is about the new purchase, a 2010 Golf TDI, 4dr, with the DSG, xenons & sunroof.It's got 12 miles on it, 7 of which were my test drive.

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Congrats on the new ride! You'll love it.

But the dealer claims the cost of the extended service plan will be refunded if it's not spent after 7yrs/70k.

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I would get that in writing. That sounds fishy to me. And what is the definition of "spent"?

Also, keep in mind that the car comes with a 3yr/30k plan, so you're really purchasing a 4y/40k plan (not 7). I did not get the extended service plan, however you can always purchase it towards the end of the standard 3 year plan. Like vinistois suggested, you can always haggle the price on the plan. There are members who got theirs thrown in for free.

mcneil said:

But the dealer claims the cost of the extended service plan will be refunded if it's not spent after 7yrs/70k.

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I was told the same thing and shown the brochure from VW - this is a new option with the rollout of the 3yr/36k service plan and such.

I turned it down because I'm learning that VW forums are an awesome resource for garage mechanics and I'm not one to trust dealerships to begin with.

The only thing scaring me about the TDI are the reports of HPFP grenades, but if mine is going to go, it should happen before 36k miles. VW might even step up and extend the warranty on the fuel system as they have the DSG with the MKV. The DSG tech gets better and better each year, so I assume the new trannies should be more reliable.

Also keep in mind that this "plan" is NOT an extended warranty (as is often implied). It is an insurance policy, and there are two things to remember about insurance policies:

1) They are only as good as the insurance company that backs them. Several "extended warranty" companies have gone out of business in recent years. Make sure it is really VW who backs this policy, not some third party company.

2) They are money makers for the dealership. About half the cost of the plan goes directly to the dealer as a commission (read profit). This is why they try so hard to sell it to you.

Therefore, it really is a bet, buying these policies is just betting that your car will have problems that are more costly than the policy. For some owners this is true, for others it is not. If most owners "need" this policy, the insurance company goes broke (they lose money). Therefore, the policies are priced to try and prevent this. The insurance company is betting that you will pay them more than you will need. The majority of owners fall into this category, so they make money. The two big questions are:

1) Do you feel lucky? IOW: are you an optimist or a pessimist?
2) Do you trust the dealer to do your service? A few are excellent, many are not.

Have Fun!

Don

I don't recall the exact details but there were definitely some extra perks during the first 3 years as well. For one, you are guaranteed a rental car for services if the dealership does not have a courtesy car available. I once was told there was no car, I insisted the warranty is supposed to guarantee one, and they obliged.

The deal with the refund is if you don't make a claim within the 4 year period, they give you your money back.

So really, you don't have much to loose. Either you decide to make a claim if you deem the coverage is less expensive than the repair, otherwise you make no claims and don't pay anything.

I was/am worried about the panoramic sunroof, the DSG tranny, and the fancy TDI parts. The extended warranty was a no-brainer, especially at $500.

Thanks for all the advice. I'll probably see what I can wrangle on the cost of the extended plan.

Major issues post-warranty aren't that scary if the parts are available.

Anyone have a price on a new fuel pump? Alldata says the injectors are $500 ea from the dealer..

If the HPFP grenades, it's $11,000 to fix (read: replace the whole fuel system). A bit of research was done in this thread about the "true cost" of the HPFP failing.

As numl0ck stated, you should be able to purchase an extended warranty up until the original manufacturer's warranty expires. It would probably be wise to wait until then. Why pay for an extended warranty up front? What if you wreck the car and it's totaled? What if the car is stolen and not recovered? What if you decide to sell the car early? You'll never recoup your investment in the extended warranty in those scenarios.

The dealer will certainly push the extended warranty as hard as possible as this is a nice high-margin add for him.

I would wait until the manufacturer's warranty is about to expire, then examine your options.

One thing to remember about the extended warranty is that if you use any benefits under the extended warranty plan (namely the free towing) that is considered a claim and you are not eligible for the refund if you haven't used it otherwise. So, lets say your car breaks down on the side of the road at 20k miles. You have it towed to the nearest VW dealership b/c the extended warranty covers it. They warranty the issue (factory warranty), and you have no other problems. Since the tow was covered by the extended warranty you don't get the refund. Read the fine print.

Extended plans get more expensive with mileage. Your price now thru VW will remain the same until 9999 miles - and will go up after that.

In my mind it made sense to get a Platinum plan for 5yrs/100k miles on my JSW. I agree that extended warranties might be a bad deal at list prices, but you can get the same plan I got for around $1550 with a $50 ded ($0 at selling dealer).

Two small repairs and you break even. Anything major, and you come out ahead.

You can also cancel it anytime and get the prorated balance back. The VW coverage (via Fidelity) is also transferable for like $50, which would make your car easier to sell and possibly recover some of the cost, if you don't cancel and get a refund.

Had coverages on both my last cars (Subaru and Infiniti) and both paid for themselves pretty quickly. I have also prorated both at the time of sale and got $500 back on the Subie and $1000 back on the Infiniti.

It is your call in the end, but I had good luck with them (only from the car manufacturer, no third party)...

BTW, I drive over 20k miles per year, so 5/100 works well for me.

uscgbeachbum said:

One thing to remember about the extended warranty is that if you use any benefits under the extended warranty plan (namely the free towing) that is considered a claim and you are not eligible for the refund if you haven't used it otherwise. So, lets say your car breaks down on the side of the road at 20k miles. You have it towed to the nearest VW dealership b/c the extended warranty covers it. They warranty the issue (factory warranty), and you have no other problems. Since the tow was covered by the extended warranty you don't get the refund. Read the fine print.

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Well, for the first 3/36 you are covered under VW roadside assistance, which would not be a claim against extended warranty. After that period, you should be using the towing plan that is part of your regular auto policy. You all DO have towing, don't you?

Seems like the plan may be a win after all. Let's see how well I can haggle on Weds.

Also after reading jammicpai's story about the HPFP and contaminated fuel, I'm going to be logging all the fill-ups with location and mileage. I haven't usually bothered with vehicle logs, but this is our first new carhttp://forums.tdiclub.com/showthread.php?t=283869&page=10, so hey.. why not.