Extended Warranty

[GaynorJ]

Hi there, I'm buying a 2014 SQ5 3.0BiTdi Quattro Ti. Mileage 21480. FSH etc. I'm considering buying an extended warranty given the age of the car, though the mileage is low I think it's best to be safe than sorry. I  wondered what people's experiences are of the warranty companies? Has anyone had any good or bad experiences? Is a warranty worth getting? I've had quotes in from Warrantywise and Motoreasy so far. Thanks in advance for your thoughts..

 

[Magnet]

Hello Gaynor,

Many thanks for being in touch. 

Extended warranties can of course, be a well worthwhile insurance against unforeseen problems, but they can be a minefield. 

If this were me, I would be far more interested studying the small print exclusion clauses to find out what isn’t covered, rather than what is. Small print is indeed small, but the consequences are big. 

I guess this vehicle isn’t being sold by a main dealer (despite its low mileage). Perhaps you could let us know. If it is, then I would expect the standard secondhand sale warranty you will get will be more comprehensive (and extended?) than that which you would get at a normal car sales site. 

Current, as well as future economics come into play here, since if you are buying the car at a reasonable price, and considering spending £x on a warranty, then you could ask yourself - would I buy it at this combined price anyway? If the answer is yes, then in your book, you are getting your extended warranty for ‘free’ - so it’s worth having. 

You don’t tell us how long you intend extending the warranty for and what the cost range is, but another consideration  might be to simply put this money one side to part finance any repairs. 

Re 21K mikes in 6 years miles and FSH? How many services has the car had, when was the last one, and are the sellers going to service the car for you before purchase, and if so - to what level i.e. exactly what are they going to do? - to some, a service will be changing the oil and filter. 

Good luck with the homework! 

Kind regards,

Gareth. 

To me, it seems you (understandably) want to buy peace of mind, and there’s nothing wrong with that, so it’s back to my original suggestion of carefully studying the small print. 

Re. 

 

[GaynorJ]

Thanks so much  for your feedback Gareth. That’s really useful. No it’s not being sold by a main dealer. I was thinking of taking the warranty for 24 months probably and have been quotes varying from £460 to £1200 per year....

[Magnet]

 

Thanks for coming back with some helpful additions Gaynor.

So if you want to take out a warranty to cover (exactly what?) for two years, you will be paying between £920 and £2400 over those two years. Blinking heck! 

What level, and length of warranty are the sellers giving you anyway? 

Kind regards,

Gareth. 

[GaynorJ]

I know.. the higher end prices are just ludicrous and absolutely not an option. I’d be better probably putting money away each month to cover possible repairs. The warranty I’m looking at just now is from motoreasy and overs failures due to wear and tear, air conditioning system, braking system, electrics, cooling systems, ignition, gearbox, turbocharger etc. The list of covered components is pretty extensive. They don’t cover batteries, exhaust manifolds and pipes, infotainment and navigation, oil filters, consumables etc. That’s more affordable over the two years. I just wonder if it’s worth doing and will give me peace of mind. Not sure if people find these warranties useful or a waste of money.. 

[Magnet]

Hello Gaynor, 

To offer warranties which cover ‘wear and tear’ is rare, and personally I would be suspicious of this, but.....

’Higher prices’ ludicrous? Well even at the cheaper end you quoted, you would be paying £920 over two years for this ‘insurance’. When you consider what you pay annually in comparison to insure the vehicle, with the insurer taking a risk on you writing the car off and have to pay out a total loss claim, these policies would not appear to be good value for money in comparison. 

You don’t tell us what warranty you are getting from the seller, or what pre sales servicing you are getting. One thing I would bear in mind is that if you are buying this vehicle outside your locality ( some buyers now travel hundreds of miles - round trips, to buy) then you might have to effectively (practically) kiss good bye to using this warranty, unless it includes a facility to get the vehicle repaired in your area. 

Is the seller able to offer you any competitive extended warranty? 

Kind regards,

Gareth. 

[GaynorJ]

Not sure, I'll look into it. But as we are not buying the car locally, I doubt it would be worth it anyway. I'm probably better either putting money aside each month for possible repairs or getting an independent warranty if the numbers and what they offer stack up so I'll need to dig around and research it. Thanks for your input

[Magnet]

Thanks Gaynor,

I’m not a fan of buying cars at a distance, since teething troubles are probably inevitable, and it’s just impractical to rectify them with the seller. Having said that, I would most certainly be interested in the terms and length of their warranty, and most certainly wouldn’t be progressing a purchase without being armed with that information. The above limitations if anything goes wrong is realistic, but very often, seller’s warrantees can accommodate repairs carried out independently of the seller, so my first statement may not be as harsh as it sounds. 

Independent warrantees will be what the small print covers, but may - just may - only apply from the end of the seller’s statutory warranty, so some digging and caution needed I guess. Personally, I would be first checking with the seller as to what you are getting  - since this will be your basing point - and who knows, their extended warranty may be as good as/ better than/cheaper than others you are considering. 

Kind regards,

Gareth. 

p.s. Probably not my business, and a bit of a deviation off topic, but have you actually viewed the car before committing to buy? If not, and it disappoints on viewing, and a deposit has been paid, then I think you may find that deposits can be non refundable, unless the goods aren’t  as advertised. 

[GaynorJ]

Not at all. I really appreciate your input and advice. Going to see the car tomorrow with my husband. I will look into the warranty stuff and can decide from there the best route to take. Always good to see what other people's experiences are as some of the independent warranties seem ludicrously expensive and I can't see how they stack up tbh. We have an excellent and very reputable independent Audi specialist here locally, so assuming we do go ahead and buy the car, I have provisionally booked in an assessment of it with them next week and they'll do a full review of it so if they find anything, I am still well within consumer rights to get it dealt with by the seller.