GolfGTIforum.co.uk
Model specific boards => Golf mk7 => Topic started by: mcmaddy on 04 May 2013, 12:24
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As it stands at the moment I've gone for the 5 year warranty but can't understand why the 4 year one is £209 yet the 5 year is £490. I'm sure on the seat's it's cheaper to get the 5yr than the 4. is the 5 year warranty worth it or would the 4 year be sufficient with the option to shop around for a fifth if needed?
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I don't really understand what your asking? The 5 year one will obviously cost more as it's an extra year and as we all know, the older a car gets the more things start to fail, if you are definatley going to keep the car for 5 years then imo it's worth taking out the 5th year at purchase because you can bet your life it'll cost more than the £281 difference if you take it out later! :sick: But if your not sure then i'd go for 4 years because you won't get that money back if you sell/trade it after 4 years.
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Completely depends on how long you want to keep the car. If you're stuck on Golfs and won't fancy a change before 5 years (can't see MK8 being in before that point) then getting the 5 year warranty is the sensible thing to do. My dad will keep his car a long time so I will urge him to add the 5 year warranty. At £490 for an extra 2 years comprehensive warranty cover it is a bargain. Year 5 cover is a little more than year 4 as there is slightly more chance of a component failure that would come under warranty in year 5 than year 4.
If I knew for sure that I would keep mine for 5 years i'd rather buy this cover than some aftermarket one with exclusions for migh on the same money.
As it is, I usually change my car every 2 to 3 years. Right now i'm the only person in my household who drives. I'm coming from a Scirocco to something that won't look as good externally (IMO) but the extra equipment, higher output engine, practicality of 5 doors, significantly better economy and superior residuals make it the car to get. If my wife drove, i'd probably have her own the "sensible" car of the household and maybe in 3 years time i'd be getting myself into the next generation TT or Scirocco again. Or maybe after 3 years i'd be back in a newer GTD.
The way Solutions is set up, it's almost as cost effective to own 2 GTDs back to back in a 6 year period as it is to own one and see it's p/x value at 6 years drop to maybe £6500 (£20k depreciation in 6 years as opposed to 2 x £11k depreciation in 3 years). For an extra 10% cost over owning 1 for 6 years you can be driving a new one again at year 4, and maybe there have been some advancements available on the newer model etc. For me I definitely think i'll be into a new car (whatever it may be) 3 years after buying this one, so for me the warranty is wasted money.
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Basically, if you go for 5 years, it's costing you £245 per year. And £245 today will not buy the same in 4 years time taking inflation into account. So, as mentioned above, if you are definitely keeping it for 5 years, it's a no brainer.
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I tend to keep my cars 4 years so I've only taken out the 4yr warranty. Gives me peace of mind and at only £205 and should the DSG or ADC go bang it would pay for itself no problem.
As the others have said if you plan to keep the car late into its 4th year then 5yr warranty cover is definitely worth it, especially with all this new tech!
If you're risk averse (like me), I say go for it!
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As above .. it all depends on how long you intend to keep the car.
Either way, both the 4 year and 5 year extended warranty options are an absolute bargain (if needed) and well below what you used to have to pay. I got a call from VW when my standard 3 year warranty was about to expire (on a Mk 5 ED 30) and they quoted me over £500 for one more year (i.e the 4th year).
If you have a DSG car, and intend to keep the car 4 or 5 years or more, it's a bit of a no brainer really IMHO unless you intend to mod of course.
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No dsg and definitely no mods. Just down to how long I think I might keep the car.
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I think that comments like it's a 'no brainer' (I particularly hate this idiotic term) or a 'bargain' are wrong.
Extended warranties are just another form of insurance. For the majority of people they are a waste of money.
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Squit: Some forms of insurance are a waste of money. I consider GAP a waste of money (an insurance policy to supplement an insurance policy) but i'll happily accept a free policy as a sweetener.
VWs don't have the kind of bulletproof reliability they used to pride themselves on and as they get ever complex equipment, in-service failure is more frequent than it ever used to be. As someone who has owned 6 VWs from new I can tell you that every one has had warranty work that would exceed the cost of £490 if I had to bear the cost of it myself.
For the peace of mind that the VW warranty extension offers at a price equating to 2% of the list price of a GTD/GTI I would consider it fantastic value for money if you planning on keeping the car 5 years. A single minor failure with just a few hours labour at VW dealership rates could more than swallow the cost of this extended warranty.
For almost any other item you could buy with a fraction of the complexity of a modern high-spec car, most would extend the warranty if it cost just 2% of the item purchase price.
If I could assure myself that I would keep my car for 5 years then I would consider it a "no brainer" to get it. You are paying for peace of mind by taking it out, and if nothing goes wrong in the coverage period it wasn't a waste of money. No one can be sure nothing will go wrong in years 4 and 5, it isn't massively unlikely that you will end up making a claim.
Unlike all of the aftermarket warranties with a raft of exclusions, this extended warranty is as good as the one which comes with the car for the first 3 years. If that isn't worth 2% of the car's list price then you must have an extreme view on "value for money" which I assume a new VW wouldn't qualify as.
After the first 3 years of relatively flat and predictable costs of running your VW (save for maybe replacing the front tyres), years 4 and 5 can be a bit iffy if you're still financing the car and are open to potential repair bills - the extended warranty is a huge safety buffer against the unpredictable for comparatively low cost.
I do think that as 5 and even 7 year warranties become standard issue for many marques (but none of the German ones) VW could bring it in (but they'd just add £500 to the list price to achieve it!), even Alfas come with a 5 year warranty now!
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I see what you are saying, but I maintain that for the majority of people, most will lose out. Unless I'm mistaken, that is exactly why manufacturers offer extended warranties - overall they make money!
You say that if nothing goes wrong in the coverage period, it wasn't a waste of money?! Surely it was - you've paid hundreds of pounds for nothing.
I don't entirely disagree with extended warranties, it's just I take issue with people saying it's a 'no brainer'. Just because it's only a few hundred quid, that doesn't make it good value, it just means that for most people that's all they lose.
Of course, there are always exceptions and by the sounds of it, with your past luck with VWs, it might actually be a no brainer. At the same, I've never bought a warranty and in doing so I've saved thousands...
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I see what you are saying, but I maintain that for the majority of people, most will lose out. Unless I'm mistaken, that is exactly why manufacturers offer extended warranties - overall they make money!
You say that if nothing goes wrong in the coverage period, it wasn't a waste of money?! Surely it was - you've paid hundreds of pounds for nothing.
I don't entirely disagree with extended warranties, it's just I take issue with people saying it's a 'no brainer'. Just because it's only a few hundred quid, that doesn't make it good value, it just means that for most people that's all they lose.
Of course, there are always exceptions and by the sounds of it, with your past luck with VWs, it might actually be a no brainer. At the same, I've never bought a warranty and in doing so I've saved thousands...
Yes I said 'no brainer'. Why do you have an issue with it? It simply means it's an easy decision, not taxing on the brain that's all. Saying it is an idiotic comment is implying the person who said it is an idiot, which I'm sure you'll agree is rather rude?
And if you had read the OP properly, you would see that mcmaddy was asking why it is more expensive when purchasing a five year warranty. It's simple maths why it is better value for money to choose five years today as opposed to in four years time. On this premise it is a 'no brainer'.
If you can't figure that out, you know diddly squat, Squit.
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I would go for a warranty regardless. I did on the mk5 and saved over the cost in repairs, did it on my last 335i and had £8.5k worth of warranty in year 4. That would have been crippling if i hadnt have took it out. Just renewed it on my 911, unsure, but dealer pointed out that I had over £5k done in last year.
Piece of mind in my view.
Bizarrely i extended it on my Fiat 500 ..... And nothing went wrong. What are the chances of that ?
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I didn't mean to be rude, honestly. If I did, for example, I might have accused you of knowing diddly squat.
Maybe idiotic was too much, but that was to emphasise how much I dislike the term.
As to the maths, I understand the relative values of the 4 and 5 year cover. My argument is simply that in most cases, such extended warranties are never needed and therefore a waste of money.
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I didn't mean to be rude, honestly. If I did, for example, I might have accused you have knowing diddly squat.
Maybe idiotic was too much, but that was to emphasise how much I dislike the term.
As to the maths, I understand the relative value of the 4 and 5 year cover. My argument is simply that in most cases, such extended warranties are never needed and therefore a waste of money.
It's all good mate. Peace.
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Fair enough. :kiss: :kiss:
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I see what you are saying, but I maintain that for the majority of people, most will lose out. Unless I'm mistaken, that is exactly why manufacturers offer extended warranties - overall they make money!
The manufacturers offer extended warranty to cover their losses in offering one, it is the third parties that make money from them. That's why if you go into Currys to buy a Samsung 40" telly their extended warranty is like another £120, but Samsung direct can provide a policy for £30. Same for this VW warranty, they provide complete warranty cover for less than many third parties can sell with a raft of exclusions that VW don't have. Did you know that about 8% of the cost of your new car is swallowed up by the 3 year warranty coverage? Of course a car is far more likely to be showing niggles and component failure early on in it's life to to manufacturing defects not apparent at time of fitment, but 2% cost of the car for an additional 2 years warranty is hardly profiteering, VW will just about be covering its costs at that rate.
The trouble with a £50 component failing on a car is it'll cost £150 to repair under warranty if it's a 2 hour job to replace (VW to dealership contracted labour rates are about £50/hr. You get a £2000 gearbox failure and it's a 10 hour fix, £2500 etc. It doesn't take much to go wrong for this warranty to have paid for itself.
You don't think that most people will need an extended warranty? Maybe true on a £500 TV when they want an extra £120 for warranty extension, but on a piece of kit as complex as a car that has to perform in all climates, component failure is far more likely.
If I have clairvoyancy to tell my car will be rock-solid reliable between years 4 and 5 then fair enough it is a waste of money but I for one do not have the confidence in VW engineering (or 3rd party components more likely!) to say im 95% sure my car won't need an out of warranty repair whenit is 4 or 5 years old. What does £490 buy you as an option on your new car? Not a lot, you can't even get metallic paint for that. It does buy you a hell of a lot of peace of mind for (relative to the car's cost) very little outlay.
For me at least, my GTD will be someone else's car in 3 years time, so not a purchase I will make.
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Squit - I suppose if your lucky enough to have never made a warranty claim after the initial 3 year period has expired it would appear to be a waste of money. Unfortunately I'm not in a position to be changing my car at 3 years and avoiding the out of period driving but I've also had a mk5 golf and jetta that required work in the 4th year. Both previous cars were bought second hand so maybe that has something to do with it. Car insurance in effect is a waste of money year on year unless you make a claim - slightly different to warranty I know. My initial question was why the 5 year warranty was more expensive in proportion to the 4yr one. Seat for example is 200 for year 4 buy only 375 for the 5 (not correct figures by the way just an illustration). I'd rather have the peace of mind though knowing that the warranty will cover me.
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Of course, there are always exceptions and by the sounds of it, with your past luck with VWs, it might actually be a no brainer. At the same, I've never bought a warranty and in doing so I've saved thousands...
:grin: :laugh: :smiley:
it must be catching ! (only joking btw)
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I was simply making an observation based on the premise: of those that take out extended warranties, any one individual is more likely than not, not to require it.
I realise that the decision as to whether or not to buy such warranties is far more complicated.
Yes, clairvoyance would be nice - had I got this power, I never would have posted last night! Apologies to the original poster for inadvertently hijacking the thread, particularly as my posts were not entirely relevant.
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If I was planning on keeping the car for a good few years I'd jump at the option.
But I only wish I had that much patience with a car!!
Incidentally has anybody read the small print to see how much of the car is covered or is it just major mechanical parts?
I'm thinking of interior trim etc.
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Exonian: It is supposed to be as comprehensive as the original 3 year warranty that comes with all cars. I'm unsure whether it extends the "3 year no quibble paint warranty", and some trim piece/seat cushion failures could possibly be construed as "wear and tear" going by past experience with other marques. Other than that I don't think there is anything that definitely isn't covered.
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In that case it's pretty darn good value as warranties go. :cool:
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I've just been reading the FAQ's on the order tracking page and it says you NEED to spec the extended factory warranty on order as you won't be able to add it once the car is registered?? :o
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Maybe they build it a bit better if they know they're going to have to pay out to fix it for longer?!!! :grin: :laugh:
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Maybe they build it a bit better if they know they're going to have to pay out to fix it for longer?!!! :grin: :laugh:
Classic!
:grin: :grin: :grin:
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I've asked for it on mine but it isn't on the order form. as long as it done pure registration then it should be ok. as far as I'm aware its a fully extended VW warranty.
Squit - all points are valid and all opinions greatly appreciated.
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I've just been reading the FAQ's on the order tracking page and it says you NEED to spec the extended factory warranty on order as you won't be able to add it once the car is registered?? :o
I took out an Audi 4th year warranty on my current car and yes, that had to be taken out and recorded with Audi BEFORE the car was registered - so I guess it's the same for all the VAG group.