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

Sajeev Mehta
by Sajeev Mehta

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)

Sajeev Mehta
Sajeev Mehta

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  • MarcKyle64 MarcKyle64 on Mar 18, 2010

    I had a 2000 Toyota Celica that used a quart of oil every 600-800 miles depending on if it was city or highway. Toyota 'rebuilt' the motor after both an extended oil consumption test AND accusations from the dealer that I was draining oil out of the car. The reason I put quotations on rebuilt is because the car still used oil at a rate of 800-1000 miles again depending on usage. I complained again and was told that it was now within Toyota's consumption specs of 750 miles per quart. I ditched the car and have never considered buying a Toyota again. I think Toyota's current troubles are Karma in action.

  • Chaparral Chaparral on Mar 18, 2010

    If you burn a quart of oil every 1000 miles, and you get around 30 MPG, you are burning one quart of gasoline for about every thirty gallons. That's around 125:1 which wouldn't be too far out of line for a modern oil injected two-stroke - and that has a Total Loss oil system with big fat ports right in the cylinder walls!

  • Lichtronamo Watch as the non-us based automakers shift more production to Mexico in the future.
  • 28-Cars-Later " Electrek recently dug around in Tesla’s online parts catalog and found that the windshield costs a whopping $1,900 to replace.To be fair, that’s around what a Mercedes S-Class or Rivian windshield costs, but the Tesla’s glass is unique because of its shape. It’s also worth noting that most insurance plans have glass replacement options that can make the repair a low- or zero-cost issue. "Now I understand why my insurance is so high despite no claims for years and about 7,500 annual miles between three cars.
  • AMcA My theory is that that when the Big 3 gave away the store to the UAW in the last contract, there was a side deal in which the UAW promised to go after the non-organized transplant plants. Even the UAW understands that if the wage differential gets too high it's gonna kill the golden goose.
  • MKizzy Why else does range matter? Because in the EV advocate's dream scenario of a post-ICE future, the average multi-car household will find itself with more EVs in their garages and driveways than places to plug them in or the capacity to charge then all at once without significant electrical upgrades. Unless each vehicle has enough range to allow for multiple days without plugging in, fighting over charging access in multi-EV households will be right up there with finances for causes of domestic strife.
  • 28-Cars-Later WSJ blurb in Think or Swim:Workers at Volkswagen's Tennessee factory voted to join the United Auto Workers, marking a historic win for the 89- year-old union that is seeking to expand where it has struggled before, with foreign-owned factories in the South.The vote is a breakthrough for the UAW, whose membership has shrunk by about three-quarters since the 1970s, to less than 400,000 workers last year.UAW leaders have hitched their growth ambitions to organizing nonunion auto factories, many of which are in southern states where the Detroit-based labor group has failed several times and antiunion sentiment abounds."People are ready for change," said Kelcey Smith, 48, who has worked in the VW plant's paint shop for about a year, after leaving his job at an Amazon.com warehouse in town. "We look forward to making history and bringing change throughout the entire South."   ...Start the clock on a Chattanooga shutdown.
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