Should I cancel my extended warranty?

Should I cancel my extended warranty?
So I got a letter in the mail from my extended warranty company giving me the chance to refund my extended warranty. I would get a $5,000 cheque in the mail. Extended warranty is good for an additional 3 years / 50,000 KM. Expires at 120,000 KM. I'm leaning towards doing that and then buying the 2 micron filter kit and DPF delete if the DPF system ever fails. Think I'll ever have more then $5000 of repairs in 3 years or 120,000 KM. It's a 2013 Passat TDI.

I to have an extended warranty and was wondering if I should cancel the remainder.... but then, June 21 isn't that far off.... will wait until we have a realistic idea of what's gonna happen with the buy-back or whatever.

A $5k check in the mail??? What is your warranty worth?

brian_e said:

A $5k check in the mail??? What is your warranty worth?

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That's what I paid for it

My first thought is, if they are so desperate to buy your warranty back, they must be worried that you are going to get a really good deal out of it, at their expense.

They didn't send a formal letter offering to buy it back, it was in the small print on a back page saying I have 60 days to cancel it for a full refund.

If you can wait to June 21st, that's a good idea. If your 60 days are up before then, I'd take the cash - if you wind up selling back your car to VW, then better to have that money in your pocket; if you don't sell back, can always get an extended warranty from somewhere else for probably less than $5k anyway (other threads on the topic are available).

Well I got thinking that the 2 biggest things to die are the HPFP and the DPF system. So I'd invest in the 2 micron filter kit and remove the DPF system if it failed. And if the HPFP did fail, ID do the timing belt aswell as a cp3 upgrade

HPFP failures on the NMS Passats aren't as frequent as previous engines, I'd say rare.

Try to get your money back. Let us know how that goes, as warranty companies are notorious for being...uhh...well...difficult, especially when it comes to getting money BACK from them.

It should be easy. It's in the contract afterall

^^^Uhh...yeah...for sure. However, insurance/warranty companies have a reputation for manipulating what the owner THINKS they're reading.
Partly, I'm just yanking your chain. Seriously, though, it might not be as easy as you think.
Keep us posted!

Interesting.

So you've had the EWty for a while now (few years ?) and all of a sudden the Co is offering to refund the entire amt ? Something doesn't add up here

I thought about cancelling mine (about $2K) when VW extended wty on HPFP and turbocharger - which 2 items were the main reason I got the EW to begin with, but insurance company made it sound like I'd barely get any money back, so I didn't pursue it

Cancel it. You will be way ahead unless something really unusual happens. And there is no telling whether any claim you have will be honored.

r11 said:

Interesting.

So you've had the EWty for a while now (few years ?) and all of a sudden the Co is offering to refund the entire amt ? Something doesn't add up here

I thought about cancelling mine (about $2K) when VW extended wty on HPFP and turbocharger - which 2 items were the main reason I got the EW to begin with, but insurance company made it sound like I'd barely get any money back, so I didn't pursue it

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I've had it for less then 30 days. 60 days to cancel it. I got it initially in case there was an issue that didn't show up on the test drive, but it's solid without a single issue.

5K for a warranty, wow

740GLE said:

5K for a warranty, wow

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I guess he had money to burn and/or was really worried about potential issues when he bought the car. I wouldn't spend that $$$ on an extended warranty myself. To each his own...

PrairieRoamer said:

I've had it for less then 30 days. 60 days to cancel it. I got it initially in case there was an issue that didn't show up on the test drive, but it's solid without a single issue.

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If it were me, I would cancel it. My inclination would be to say today, but, OK, maybe wait until day 59.....

Why do people call these "extended warranties" when they are nothing more than insurance contracts for unscheduled repairs.

South Coast Guy said:

Cancel it. You will be way ahead unless something really unusual happens. And there is no telling whether any claim you have will be honored.

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^^^ This.
Take the money and put it in the bank incase you need a repair.
If you don't then you still have the $5000.
From what I have heard about extended warranty companies if you do have a claim they will probably try to say it is not covered anyways.

Wow - $5k for a warranty. I think I paid $800 for mine.

But on my 2013 the turbo failure was a $4,500 repair - under warranty. Similarly, Adblue heater was done under warranty.

aja8888 said:

Why do people call these "extended warranties" when they are nothing more than insurance contracts for unscheduled repairs.

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For the same reason you don't call the warranty you got on the car, which really cost you $X dollars over what you could have paid, the unscheduled repair insurance period.

After all if VW wanted to they could sell all cars as-is if it breaks we won't fix it and lower the MSRP.

They're just rolling cost of the "insurance contract" into the cost.

I'm thinking the same thing, I can't believe any extended warranty would be so expensive. I had a nissan murano; 2003 and 72 months/120 Kms cost me around $1,350.. If I can recall. I'd take the money and run...

aja8888 said:

Why do people call these "extended warranties" when they are nothing more than insurance contracts for unscheduled repairs.

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Because it's "snake oil" talk by salesmen to make you think you'll be extending the terms of the factory warranty when, in fact, it does nothing of the sort. And most of the time, the silly salesmen are too ignorant to know that fact themselves.

The terms "warranty", "insurance", and "service contract" are distinctly different legal terms - each with distinct terms, limits, and remedies attached to them. In the case of the product VW calls their "extended warranty" (the one with the VW logo emblazoned on it), it is a "Service Contract" - says so right on the first page. It is neither a "warranty" nor an "insurance" policy and referring to it as such is just simply wrong. Contrary, what you get with a new car purchase is truly a "warranty" and not some disguised "insurance contract" as was implied by czeetah.

Absolutely positively cancel it. The turbo and HPFP are now covered by VW, emission is 8 years by the federal law and then we have the 21st approaching fast.

r11 said:

Absolutely positively cancel it. The turbo and HPFP are now covered by VW, emission is 8 years by the federal law and then we have the 21st approaching fast.

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Well, the emissions warranty coverage leaves much to be desired. Everything emissions related that has been failing doesn't seem to be covered outside of the 3/36 warranty. That said, VW has picked up a lot of issues outside of warranty. Just don't count on the emissions warranty to cover much.