bobinwa

I bought the Audi Pure Protection in the business office at the dealer. Frankly I wish I had some time to prepare for this and felt a bit pressured. But I think I'm still comfortable with it. I got the 7 yr/70K mi Platinum plan from Fidelity (FWS) and if I understand the fine print I can cancel within 60 days of expiration and get a full refund minus $25 IF I haven't made any claims. So if something minor happens, I will start playing the gambling game - do I pay out of pocket and gamble that nothing else will go wrong so I can get the refund, or file a claim and give up potential refund. I'm sure the insurance company is confident that most people will file small claims or just forget to file for refund in 7 yrs. FWIW.

bobinwa

By the way, the dealer charged me $3,410 for the platinum plan.

OBP

All finance managers ( whether Audi or some other make ) are told to tell clients they have to buy now. Most of the time, you can buy whenever you like ( especially if your car is still under the old factory warranty ) and you can buy cheaper than what the finance manager is telling you. Do a google search for a guy called Troy Dietrich. He sells many extended warranties for many different makes and he has a good reputation from what I have read.

ericgl

After getting taken by my dealer on my A5 extended warranty and wheel insurance, I will never let a finance rep sell me anything.

s5blitzer

Curious what you mean by "taken by dealer"? Thanks!

ericgl

In 12/2010 I bought an A5 and spent ~3K for the 'Audi" extended warranty an d wheel protection. Early July 2011 I traded it in for my A6 at the same dealerdhip with less than 5000 miles, expecting most of my 3K back. After 4 months of calling the dealer and AofA (who told me they don't offer an extended warranty), I finally recieved a dealership check for ~$600. No claims.

ironlungs

Interesting. Not sure why they would have even offered it to you. The finance manager brought it up with me because he noticed that I was buying in cash and I typically drive my cars for 7-10 years. I probably would not consider spending money on an extended warranty if I was keeping it only for a year. In terms of the Audi Pure Protection, the clause for the refund is that you must not have filed a claim and you must have fulfilled either the mile or year criteria.

snagitseven

I have some professional experience with these "full refund if not used" warranties with other product categories.
The warranty company will offer this incentive as they are rarely ever redeemed. What typically happens is a warranty holder will pay for some minor repairs out of pocket to avoid making a claim. Then, an expensive repair comes along and there is no choice but to make a claim resulting in lost money from the out of pocket repairs and no policy refund earned. In any case, one is betting against no repairs, which ultimately, is unlikely.

Also, one needs to pay close attention to the fine print of these contracts. There are typically exclusions and limitations to the coverage or where they can be honored. Often, there are also deductibles or co-pays for each occurrence. If so, these need to be added in to any final cost analysis.

I pass on these extended warranties - I self-insure and invest the equivalent dollars. Based on many years of new cars purchased, I almost always come out ahead than if I had purchased a warranty. It also gives me complete flexibility on who will repair my car, including my Indy shop which charges about 35% less than the dealer.

So, it comes down to how much you are willing to pay up front for some (possibly limited) piece of mind. Regardless of whether or not you decide to purchase a warranty, there's one thing you can be certain of - like Vegas casinos, the warranty companies do not lose money.

s5blitzer

Well said.

noah123

I am surprised how often people fall for this...

The fact that AUDI does not offer this by itself should ring alarm bells in anyone's mind