Piston Slap: How Do I Warranty Thee? Let Me Count the Ways...

Steven writes:

Hello Sajeev, I have a question along the lines of the Piston Slap article “ Save Me From My X5.” I have a 2007 four door GTI with DSG that I purchased new on October 12, 2006. The car has just about 35,000 miles and the factory warranty is expiring October 12, 2010. I really like the car and would be happy to keep it for a few more years. I’m dreaming of no car payments.

My GTI is basically reliable. I’ve been left on the side of the road twice from faulty ignition coils, but those are about to be replaced via a recall. The only other issue I have is that it uses a quart of oil every 1,200 miles. The car is completely stock. My worries about keeping the car out of warranty would be the oil usage and the complex DSG transmission. Yes, VW is providing extending the warranty on certain DSG models to 10/100,000 but (from what I can tell) it does not apply to 2006 and early 2007 builds.

Here’s my question to you: Should I buy the Volkswagen “RealDriver” extended warranty provided by Fidelity Warranty Services? The options for the plan are set up a la carte style, you can choose level of coverage, deductible, total miles, and total time. But, it is set up so that there’s not much of a price difference between the most basic and most comprehensive levels. So, if I got it I would go all they way, getting “platinum” coverage with an extra 75,000 miles and five years above the factory warranty. I was quoted a price of $3,300 for this coverage (from the dealer where I bought the car). The salesperson was clear that there is room for negotiation on this price. Thanks for your assistance!

Sajeev answers:

If you aren’t a wrench-turning forum junky, an extended warranty on any European car is a good idea. Judging by VW’s website I’d recommend the middle or top option, simply for the expensive electrical components it covers. If the difference is less than $500, I’d jump for the top spot.

Regarding pricing: forget about negotiation, you better comparison shop! Getting the best deal isn’t your problem, because manufacturer-branded extended warranties have a retail and dealer price, just like the cars on the lot. So you email all the VW dealerships’ Internet Sales Managers in a 200-ish mile (or more) radius of your home and see which person shows you the most love.

At the risk of VW bashing, I’m going there: oil consumption and ignition coil problems make your car far less reliable than others in that price range. While Steven Lang likes GTI’s overall, he mentions the problems of owning a not-brand-new Vee Dub in a recent Hammer Time (LINK: http://www.thetruthaboutcars.com/hammer-time-avantis-inferno/) article. So don’t be too surprised if the warranty company already “gamed” the system to exclude a common fail point, and that you’ll always spend a large chunk of money on normal maintenance. Keep up with the servicing and find an independent VW garage (with references) so you can enjoy the GTI for a long time with minimal cash outlay every month.

Bonus! A Piston Slap Nugget of Wisdom:

Selling a car in the retail market with the balance of a warranty inspires customer confidence and ensures a higher asking price. But if you trade-in your car before that extended warranty runs out, return/pro-rate the coverage to recover some of your cash. Read the fine print, it’s there. Always read the fine print!

(Send your queries to mehta@ttac.com)