Audimurphy

Does anyone know what the best rates are for the extended warranty? My friend is buying a Q5 an wants the 7 yr/70,000 miles extended warranty an is being quoted $2500.

With my recently purchased BMW I discovere I could buy the extended warranty from any dealer and got a lead on a dealer in California (many miles away from me). I got a quote and saved seveal hundred dollars off what the local dealer was wanting to charge me. Is this same for Audi?

SeaBlue

I have an interest in this also.

DennisMitchell

Or this...





Hard to justify an extended warranty unless for an extraordinary event. Good luck with your decision.

Dennis

gr8330

Are you selling this, or did you already buy it?

snagitseven

If this item is for sale, please remember that "for sale" posts are not permitted in the AW forums. (This applies to any items, including bridges). Please use the Classified section.

stash64

I just took delivery of my 2014 2.0T and was quoted the same ($2550 I think) on the 7 yr /70K warranty. I was told that this price included a discount for being an Audi Club NA member and that the warranty is actually administered through Nissan. Audi USA uses either Nissan or Zurich for their various extended warranty options. It's hard to justify spending thousands of dollars for something that will reap no benefit for 4 years.

I'm also interested to hear what others think. And curious if anyone has stats on the resale value of an extended warranty ? I wouldn't expect better than 50% resale on the original warranty cost even if you sold the vehicle in year 4. The argument, of course, is that the extended warranty will be much more expensive (about double) if you purchase just prior to the original warranty running out rather than up front.

mjm3457

[QUOTE=stash64;24471336]It's hard to justify spending thousands of dollars for something that will reap no benefit for 4 years.
I'm also interested to hear what others think.

Stash64, you are on to something with this observation. I have commented on extended warranties in the past on this forum; I do not subscribe to them for a several reasons.

These warranties are nothing more than pre-paid servicing and replacement, just as the original new car warranty is pre-paid and included in the price of the car. But you have no choice on that one. The companies that offer extended warranties have to make money, and so they do. You will pay a premium today for those future repairs, which is exactly the warranty company's profit. Remember that you are putting up $2550, for a benefit that you will not recover until Year 5 at the earliest. If you sell or trade the car, or worse total it, you lose your investment. And the window to recover any of it is just 3 years, Year 5 through Year 7. After Year 7 you receive no benefit. Good luck in getting any trade value for what is left on this policy... that is very hard to demonstrate. Also, you should be careful of what they will repair or not, and good luck in getting them to pay.

I prefer options, so I don't take the extended warranty. After the new car warranty has ended at the end of Year 4, or 50,000 miles, if the car has been unreliable, you can trade it. If it has been good and you like it, then self-insure the repairs from that point forward. Remember that you're paying for the repairs either way.

How much does it really cost you? Well, you could instead invest your $2550 in an investment returning 7.5%, and at the beginning of Year 5, you would have $3400 after compounding. That's what you'd have for repairs beginning in Year 5, and whatever you don't spend from this account, continues to grow.

I prefer to keep my money, and decide later. However, if you are one who just wants the security of pre-paid repairs for Year 5-7, then maybe the peace of mind is worth it for you.

davidjz

I have gone back and forth on this as well. Considering the fact that I'd be spending $50k on a car I plan to drive/keep it for 5/10 years and in that case seems to serve as peace of mind. If you look online at cars for sale many appear shortly after or just before the warranty is set to expire. I'd THINK having coverage out to 6yrs/75k in my case would help make it more appealing if I had to sell...may not demand more of a price but at least sell quicker. Clearly I'm still torn. I do like the concept of investing the money that would have gone towards the additional warranty but that can also decrease if not disappear if you aren't careful. Decisions decisions

snagitseven

My view is extended warranties are simply like going to Vegas. Some will win, many will lose and the odds are stacked to the house which will always win overall. When you calculate the initial cost, the deductibles for each service claim and the often included exceptions to coverage, from a strictly financial point of view, it's probably not the lowest risk investment one can make. The only benefit I see is it provides piece of mind for those so inclined. At a pretty expensive cost.

paudiyeah

I got a quote from Sonnen Audi (San Rafael, CA) for the same platinum plan (7/70) for $2,679, after the dealer I got it from quoted me $2,873 for the same plan (Rector Audi in Burlingame). I got the latter to match the lower price, but it's still a little more than the one you have.