Your opinion on 3rd party extended warranties...

I am thinking I will probably purchase one. I have found one from AAAutoWarranty for $1450 that is a 3year/36000 miles warranty, that covers most everything. What do you guys think? I know they are a little more expensive for our TDI's for 2 reasons: #1. Diesel, #2. Turbo. But all in all, my car has 66000 miles on it, so you think it is worth it? Also, this is for a $0 deductible. So you guys let me know what you think about these or reccomend a better company if you know one. Thanks!

Me thinks they have found a clever way to get your money into their pocket. Surely you have something better to do with your $1450....? I had one of these "warranties" once... every time I tried to make a claim they found some obscure reason to deny it. Every time.

My mom had good luck with warranty gold extended warranty. Against my advice, she bought a Lincoln Continental, a car that I think is a pos! She bought the warranty for $1200. It paid for it self and then some. It bought her a steering rack, new auto transmission, a/c compresser and paid for her to be towed from timbuktu when her alternator died! Extended warranties can be great if you are sure your car is a pos. For VW, I'd pass. For a Ford or Chrysler product, if I intended to keep it past the regular warranty, I'd definitely buy one. When it comes time to sell, the warranty will help sell the car, because the buyer knows if the car kraps out, there is a warranty.If I had a extended service warranty on my old Audi 5000tq, I think the repairs to that would have seriously hurt their bottom line!

Put the money in the bank. (This is the part most people have trouble with)

Maintain the vehicle properly.

If you have a problem with the vehicle, use the money from the bank to fix the problem.

I have an issue with the notion of giving money to someone, so that they MAY give some back under very restictive circumstances. Especially (and here is the key) if I can afford to assume the risk. If it is within your means, financially, to put some aside and pay for repairs yourself, you will probably come out ahead to do so. Some people are more comfortable with the peace of mind that such a warranty provides, or they may find it easier to roll the cost of the warrenty into the monthly payments and that is fine. You need to decide what is best for your situation.

In my 35 year driving career I have had to rebuild an engine when the timing chain broke and rebuild a couple of transmissions. Fortunately, I have had the financial resources to be able to pay for these repairs, even though it was not fun to write the check. But I guarantee, the cost of the repairs is far less than what I would have paid for extended warranties.

In my 35 year driving career I have had to rebuild an engine when the timing chain broke and rebuild a couple of transmissions. Fortunately, I have had the financial resources to be able to pay for these repairs, even though it was not fun to write the check. But I guarantee, the cost of the repairs is far less than what I would have paid for extended warranties.

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Yes, but I cannot see how this can be true if say your engine or transmission does tear up. Because the repair alone would cost atleast what the warranty is worth, if not more, right? So do you then not think that the $1450 is worth it? I feel I will probably do it for the peace of mind, as well as the resell value if I ever chose to do so in the next 3 years.

Re: Your opinion on 3rd party extended warranties.

The key is whether or not you could afford to fix the car if something terrible happens.

Insurance works because more is paid into it than paid out. You may be the person that gets more out than you put in, just like you may win in Las Vegas. However, the percentages say that you will NOT get more out than you put in. So, if you can afford to take the risk (ie, fix it yourself if you lose this bet) then the odds are you will be better off without the insurance. If you cannot afford to fix a potential problem, then you have an argument for purchasing it.

I don't have any clue as to the resale value. I wouldn't consider it of any significant value when purchasing a car.

In an individual case, I might have come out ahead with the warranty, but over the course of owning 20 something vehicles, if I had purchased extended warranties on more than a very few of them I would be down big time. With the vehicles I have owned (knock on wood) I have found major repairs costing more than $1,000 or even $500 to be extremely rare.

It all comes down to whether or not the car you have is reliable. I had these extended warranties for my last 4 cars here in Florida. EVERY ONE of them was worth their weight in gold. I have had 2 Volvos and a Chrysler and have had to replace the AC compressors and evaporators in all 3 vehicles. The Chrysler had transmissions, power steering and a host of other issues. (Pre-Mercedes vehicles) The Volvos both had ABS brains replaced, engine mounts, a myriad of things to be replaced.

I was suspect of the Passat’s reliability, so I am on the fence right now about getting one. I have plenty of time. Right now, my gut says I will get one, but I will not rush this decision.

Good luck!

For only 36000 miles ???

Unless you have reason to suspect that something serious is going to "go" on your car, don't bother...

They may still deny coverage due to some small print clauses... so, save your money, do the proper maintenance (meaning getting the Timing Belt done by one of the gurus here with the complete Dieselgeek kit), and DRIVE your car...

Yuri.

I bought one from Warranty Gold on my 98 suburban. Had the transmission changed at 89000 and they paid about $2500. Bought the same warranty on my 02 suburban and within a year they were out of business. I figure that the trans replacement paid for both warranties. If I were to do it again, I would pay more and get one from the dealer. I did not get one on my TDI.