If I did pull out, which I think might be difficult at this stage, it would be a post-2012 Audi A3/A4 Quattro. I always miss the 4WD and what it does to handling.
The likelihood is I'll go through with the deal now as I'm a little too far into the process to walk away easily.
The decision then will be between getting the job done preventatively, which essentially adds about £1K to the price of the car to do it properly, or 'trust' the warranty.
Although I've been assured the warranty would cover me, I did have a problem with my last approved car which the warranty didn't cover, when the clutch jammed and needed replacing, which they wriggled out of.
If you read the Das Welt Auto warranty carefully, it's worded such that they could pretty much get away with covering nothing at all - e.g., it states that manufacturing/ mechanical defects are not covered. Would this be one of those?
I think it's risky to assume before the fact the warranty will definitely put a new engine in a car, even with assurances.
The other issue is, even if the warranty people did the honorable thing, what if the issue occurs on holiday abroad, etc.? The whole idea of having a new-ish, supposedly well-made car is to have it *be* reliable. IMO VW's position of 'if it blows up, then we'll fix it' with a known problem with a simple (if expensive) fix is unacceptable. Will the warranty pay for temporary accommodation while I'm stranded midway to my destination, loss of holiday, etc? I bet it won't.
I find it curious VW are so reluctant to do the job. I've offered to pay for it to be done at the originating dealer and my local, and both just said to use the warranty if it goes wrong. The locals said they've 'only done twelve or so' of these. I think that's a lot given where I live, and the fact that many probably went to indies instead of main dealers anyway.
I've never owned a car that wasn't a VW or Audi, but I'll be much more cautious before I buy into the brand again.