[scloughley]

I've just got my first Jetta TDI Sportwagen and so far so good. 44MPG on my first commute to the office - what a delight to have that fuel consumption figure displayed :nana2:
Some day the honeymoon will end, but hopefully not anything serious. Sooo....my dealer is offering me a 6 year warranty from "Easycare" at 25% off. Apparently it's the only plan recommended by Motor Trend (I have no idea whether that is something to feel good about or not).
First Q - have VW left behind their poor quality reputation?
Second Q - is this plan worth the $1500 investment?

Of course all I'm looking for here is personal perspective/opinion. The decision and its consequences are all mine.

 

[chittychittybangbang]

1. Not really. The cars are better than ever but there are still some problem areas like electrical. It doesn't help that cars are more complex than ever so a few people had problems with the radio, some people have had high pressure fuel pump HPFP problems that the dealer blames on misfueling, a few strange cases where a headlight goes out for no apparent reason (not the bulb).

2. $1500 isn't that bad but but is that 6 years on top of the warranty or 6 years after the factory warranty. Otherwise it's not 6 years. In addition, the devil is in the details. The warranty isn't under the dealer it's under an extended warranty company. There are many cases of extended warranty claims being denied because of some small clause like a single late oil change, an oil change that you did yourself, missing repair receipts, or some other BS.

Much like insurance companies, they aren't there to give money out, they're there to make money and as a result, are usually a poor value. Personally, I'd put $1500 in an all purpose emergency fund for home/car/etc. Now you satisfy the minimum deposit amount for many "free" checking fees that the banks are charging to keep their profits high and if you don't need that money it's still in your pocket after 6 years.

 

[scloughley]

OK all good. I fully realize that it's actually only 3 years extra (and even then I worry about the first 3 years - I assume VW is first in line but maybe it leaves me also open to arguments between VW and these guys during years 1-3).
Setting the money aside is probably the right idea - thx.

 

[Ben06]

Avoid extended warranties. They have a surprisingly large commission built into them. Why do you think best buy and online electronics stores always have the option to add them on? Think about it this way, if you're paying $1500, let's say the dealer commission is $400. The extended warranty general costs and their profit take up another $600. That means that at most, they budget $500 in repair value per contract. So spread out over 1000s of customers, they each pay $1500 for $500 worth of work. The whole point of insurance is to spread out risk but how much are you willing to pay for insurance? If it's a good deal for you, ask the salesman how much their commission is per sale of each extended warranty. If they're willing to tell you it's probably fair. If not, it means the customer would probably be outraged to find out.

 

[TDI Hoo]

...........Some day the honeymoon will end, but hopefully not anything serious. Sooo....my dealer is offering me a 6 year warranty from "Easycare" at 25% off. Apparently it's the only plan recommended by Motor Trend (I have no idea whether that is something to feel good about or not).
First Q - have VW left behind their poor quality reputation?
Second Q - is this plan worth the $1500 investment?

Of course all I'm looking for here is personal perspective/opinion. The decision and its consequences are all mine.

Consumer Reports, not my favorite read, says less than 11% of people ever use the extended warranty. Thus, they don't recommend them. I did get an extension on routine maintainance on my X3 from BMW to 6 years/70K miles for $800, but that covered brake/rotor replacement and all oil/filter changes, wiper blades, etc. It has already paid for itself with the front and rear brake service already.

But for mechanical breakdown on both the BMW (and will probably get on the TDI), we have Geico's policy, which you can purchase anytime within the first 15 months or 15K miles. It is reasonable, and there is a $100 deductable for each service visit for a covered repair. If my memory serves me, it is about $27 every 6 months to add. So, for about $60 or year or less, you are covered for expensive electronic/mechanical parts. Will probably do that. Certainly should cover a HPFP failure, if that occurs out of warranty. Your mileage may vary.