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Third-party warranty

Old Oct 21, 2008 | 12:15 PM
  #1  
gle_helle's Avatar
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Default Third-party warranty

Hello all; new member here.

I just purchased a very clean non-CPO 2005 A4 Quattro 1.8T, 6-sp., 49,600 miles. Due to the in-service date, I still have factory warranty for 400 more miles, although everything seems perfect. All factory recommended service was performed at the purchasing dealership.

My situation is: I also purchased third-party powertrain warranty coverage that ostensibly includes the timing belt up to 100,000 miles. However, I just found out that since the factory recommends timing belt replacement at 70K miles (correct?), I would be responsible for changing it at that point anyway.

Question: I believe I have an opportunity to cancel the contract; do you all think the coverage is still worth it, or should I cancel and take my chances? The warranty cost about $1,500, rolled into my loan.
 
Old Oct 22, 2008 | 09:50 PM
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So what other components does it actually cover? Doesn't seem worth it to me.
 
Old Oct 22, 2008 | 10:07 PM
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Just the powertrain? Why not try and get the car CPO'd now before your factory warranty runs out, instead - if it'd cost a comparable $ amount. CPO is more comprehensive than just a powertrain warranty.
 
Old Oct 23, 2008 | 06:06 PM
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The warranty covers all lubricated engine parts, including turbo; gaskets; timing belt (except that apparently I have to replace it at 75K - they cover it up to 75, and from 75 - 100); transmission; and the all-wheel-drive system.

The car was NOT purchased at an Audi dealership, so no CPO.

In researching the car (after had I agreed to purchase), I found out about the potential sludge issue in earlier models and was looking for a little peace of mind. I called Audi, and it looks as though the previous owner did all the factory services on time.
 
Old Oct 23, 2008 | 06:14 PM
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i dont get one thing. If your warranty says THEY HAVE TO CHANGE YOUR TB, why would it be different for them doing that at 75k/80k or 100k?
 
Old Oct 23, 2008 | 08:33 PM
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I'm surprised a warranty (other than factory) can cover timing belt replacement. Isn't it just a maintenance item, so what you would have in effect is a maintenance contract, and not warranty?

In any event, not sure about Audis, but I believe with BMW as long as your car is still covered by the new car warranty no matter where you bought it, you can bring it to the dealer and have them certify it.
 
Old Oct 23, 2008 | 09:28 PM
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Yeah, I guess I wasn't clear - it is a service contract.

The policy says it covers the TB, but in order to keep the policy in effect, you must follow the factory service. Audi recommends TB replacement at 75,000 miles on the '05. So the policy will cover the TB up until 75,000, and after I replace it, they'll cover it until the policy expires at 100K.

Yeah, I was surprised, too.

Can someone clarify the CPO possibility on a car not purchased at Audi.
 
Old Oct 23, 2008 | 09:43 PM
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Originally Posted by gle_helle
Yeah, I guess I wasn't clear - it is a service contract.

The policy says it covers the TB, but in order to keep the policy in effect, you must follow the factory service. Audi recommends TB replacement at 75,000 miles on the '05. So the policy will cover the TB up until 75,000, and after I replace it, they'll cover it until the policy expires at 100K.
Well, CPO won't cover any maintenance items whatsoever, anyway - it's only for unscheduled repairs. Conversely, a service contract most likely doesn't cover the latter, so they don't overlap.

If your service contract includes "all lubricated engine parts", it sounds like it'll pay for regular oil service, too. If you were to do it every 7.5K miles, you're looking at about 6 of them, each would run you $60 - $100, plus the timing belt (not sure about TB replacement costs, but I'm guessing no less than $400-500) and/or other scheduled stuff... maybe $1.5K for it is not so bad, after all.
 
Old Oct 24, 2008 | 08:41 PM
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those warranties dont cover to much. just from expirence
 
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