I’d be asking for the terms & conditions of the warranty and a list of exclusions which should be easy for them to provide. It’s like with any insurance, your own attitude to risk is what matters. If the things you might like to be covered aren’t covered such as mag ride shocks, timing chains etc, then you might want to give it a swerve as it may be of little use should you need to call on warranty.

A lot of people will tell you that it’s money for old rope for the dealer, but my father took out one of these “extended warranty plans” for his 2nd hand Jaguar XF. From recollection it cost £500 for 2 yrs, included 2 MOT fees and 2 services. He had cause to use the warranty to repair a problem with his gearbox which would have cost well over £1,000 so from that perspective, it was the right move. Think he had another claim on it for something else too……

Check out the small print and decide if it’s worth it for you would be my advice

 

Used car dealers no longer make much money off of the car's selling price. The big money comes from selling 'upgrades' and extended policies when you're wrapping up the paperwork. Almost all of them cost more than they are worth.

If you haven't had much experience buying used cars, be careful. You think that you've settled on a fair asking price but before you've left the building somehow you've added several thousands onto the cost of the car.

You will be offered, extended insurance, glass treatments, paint treatments, lost key insurance, etc, etc. This will be done by someone who's job is to convince you you need these things and that person is very good at what they do. Typically the 'pitches' will come while you are finalizing sales documents making it hard to research, renegotiate or walk away.

Extended warranty policies are usually done through a third party with the dealership performing the work. Bet if you search for reviews of said company you will find tons of reviews stating that claims were denied for ridiculous reasons. I wouldn't go so far as to call it a scam, but it's pretty close. Additionally, maintenance will need to be performed by the dealer (more expensive) in order to have any hope repairs will be covered.

The only insurance I would consider is “Gap” insurance if you have to finance the purchase, but that mostly pertains to new vehicles (since they devaluate quickly during the first year or two).

Instead of paying for an extended warranty, I'd pay for a third party inspection, mechanic of my choosing (so there are no surprises) and then set aside money (that would have gone to the insurance company) to a create a 'repair account' to be used only as needed.

 

I paid for additional warranty for a used Alfa Romeo I bought from the Dealership.

I paid for dealer servicing because that's what I wanted for my car.

During the warranty extension the alternator packed up. True the invoice was at dealer repair's costs, but the warranty's costs did make it worthwhile

 

For those who don’t know what gap insurance is, it’s a policy to cover the difference between what your vehicles motor insurance policy pays out in the event of a total loss write off and the difference between how much you owe on the finance. This generally means if you owe more on the finance that the insurance payout, the gap policy covers that difference. Most car loans are front loaded interest which means the total interest payable on the loan is added the balance of the loan at the outset and most initial monthly instalments just pay the interest off first before the loan capital meaning there is a very good chance you’ll owe more than any write off payout.

 

Additional note:

Batteries, tires, belts, brakes & shocks would all be considered expendable wear items and are typically not covered by insurance. Since Magride is nothing more than a set of fancy shocks I wouldn't expect them to be covered.

Maintenance needs to be performed on schedule (determined by the insurance company not Audi) and the frequency will likely be shortened (again increasing cost). Miss an oil change and your coverage will likely be worthless.

Also, if you intend on performing any mods (i.e Stage1 tune) forget about making a claim.

 

Save your money and make friends with a good local mechanic. Also preventative maintenance - and learning how to do it - will stop minor issues from turning into major ones.

 

I'm not a big fan of car warranties in general--don't really like paying the exorbitant prices of new cars to have a "new car warranty", and don't really like paying anything extra for any kind of "extended warranty" on a used purchase.

That might be just me but most extended warranties are just rip offs anyway. Also what they cover, don't cover, and if any deductibles are applicable is all subject to the exact terms and conditions of the warranty you happen to be buying. If you are considering one, be sure to go through all the fine print with a fine tooth comb before deciding one way or the other.

Any warranties on suspension components like dampers can be subject to conditions. Firstly they are usually not covered at all as they are wear/tear items. Secondly if they are covered, usually there has to be a leak, however the trick with magride damper is they wear out without leaking--I only had one rear one that was lightly leaking but even the fronts were just not right. Once I replaced them was a big difference over how the old ones were, and they had no leaks or other signs of problems.

IMO a much better idea than any extended warranty is just a "personal warranty fund". Just start by depositing the money you would have spent on the warranty in a separate account or stable/secure investment. Then just add money to it either periodically or whenever yo have spare $$$ to put in. If you ever need the money for a big repair, you can draw the money out of the fund. If you never use the money by the time your ownership of the car is over, you can then take that money and carry it forward to the next vehicle, use it as a downpayment for the next vehicle, or just spend it on whatever you like. When you put money into a warranty and you don't ever use that warranty, most of the time that money is now gone, you've paid it to the warranty/insurance company and that's that.

 

In my personal experience I have found the extended warranty to be absolutely useless, especially if it is through a third party and not direct with the Garage/Manufacturer. On the few times that I have taken out the extended warranty and gone to make a claim I have found them either making any excuse that they can not to cover the issue, or alternatively agree to cover the costs over the phone and then when it comes to pay out say that they never said such things.

Like StevieJones suggested I would ask for a copy of the T's & C's along with looking up the company providing the warranty to see if anyone has had a bad experience with them paying out.

 

Thank you all for sharing your thoughts and experiences. In the end, I didn’t buy an extended warranty.

 

Maybe wise, but I’d recommend putting some money aside for future repairs - perhaps the amount the warranty was going to be would be a good starting point

 

A cab driver once told me: Insurance is just legalized gambling. Find out what IS covered. Most policies just state what isn’t which leaves a black hole for what is covered.