Re: Service contract

["EREC - DUNCAN, CAMERON" <CDUNCAN@smtpgate.nciinc.com>]

> I JUST purchased a gem of a used 1991 Audi 200S Turbo sedan, 57k miles, 
new
> brakes & tires. The dealer said I could purchase a Service Contract
(through
> Warrantech Automotive) for 3 years/36k/$100 deductible at $1603.00.

*5 years ago, i bought a 3yr/50K/$0 ded "contract" for my V8. cost
*$800.  i don't think you are getting a great deal..  mine has more
*than paid itself off after just a handful of claims,  so i am pretty
*happy i got it...

*however....

>I have
> not been impressed with service contracts, typical dealer service, etc. on 

> one hand, but I understand an Audi is a high maintenance vehicle prone to
> expensive repair.

*you are correct.

>Can anyone help me
> evaluate this? recommendations/suggestions?

*my experience has been that the insurance company that writes the
*policy will do everything they can to turn you down.

Between handling routine maintenance myself, and possibly non-covered repair 
through an independent mechanic, I suspect they will really recoil from 
repairing much--records or no.

*the way it
*happens is if your car needs a part replaced whose description does
*not match exactly what is printed on the policy, they will attempt to
*deny you the claim.

*e.g. the brake pressure accumulator is a pretty unusual part that
*tends to fail.  the policy will typically cover "brake booster".  in
*my case they denied it, but after a bit of sweet talk to convince them
*that it is indeed part of the "brake booster" system they agreed to
*cover it.

Regarding your example, coverage is said to include "Brakes: Master 
Cylinder; Power Brake Cylinder; Vacuum Assist Boostrer; Hydro Boost; Disk 
Brake Caliper; Wheel Cylinders; Compensating Valve; Brake Hydraulic Lines 
and Fittings; Hydraulic Control Unit; Seals and Gaskets. The Following ABS 
Parts are also covered: Electornic Control Processor; Wheel Speed Sensors; 
Hydraulic Bump/Morto Assembly; Pressure Modulator Valve/Isolation Dump 
Valve; Accumulator; Seals and Gaskets."

Coverage is said to include "Enhansed Electrical: Auto. Climate Control 
Programmer; Electronic Instru. Cluster; Mileage Computer; Distributor; 
Ignition Coil; Electronic Combination Entry System (does not include 
Transmitters and Receivers for remote locks); Cruise Control Module, 
Trnasducer, Servo & Amplifier; Powertrain control Module; Headlamp Motors; 
Power Window Motor; Power Seat Motor; Power Mirror Motor; Power Antenna 
Motor/Mast Assembly; Convertible Top Motor; Power Sunroof Motor; Power 
Window Switch; Cruise Control Engagement Switch; Power Seat Switch; Power 
Mirror Motor Switch; Rear Defogger Switch; Power Door Lock Actuator & 
Switch."

This is obviously a generic plan and pretty comprehensive. The $1603 splits 
to about $535 annually--for failure of non-maint.related parts.

*there was also a temperature regulator that needed replacing in the
*climate control system.. same scenario, but i got it covered as well.

*you will need the cooperation of the dealer to help you get things
*covered.  they can massage the repair description to match what your
*policy covers.  the dealer has little incentive to help you as well,
*because they can charge you more if you are paying out of your own
*pocket,  while an insurance adjustor will dicker with them.

While the dealer has little incentive to help, an independent mechanic I 
perceive as having a significant incentive. His reputation is what keeps him 
in business.

*also, negotiate a lower price for the "service contract".  if the
*dealer can make 1000% profit instead of 2000%, they will still
*sell it to you.

Great idea. The dealer carries Warrantech's plan, but I don't know how they 
get their cut from it. They may claim they only offer it and stand to gain 
nothing by it. When they presented it to me, I was told, by rights, I had to 
accept it or reject it right then. However, they said I could review it 
until "Monday or Tuesday" at the latest. Somehow this does not seem right to 
me.

Repair of two power steering hoses that were moderately leaking were 
rejected (30 day 50/50 used car warranty repair). The service mgr. for 
regular service, not the 30 day used car warranty service, said "since you 
bought a car from us we will work with you--we won't leave you out in the 
cold." That comment occured just prior to the definitive rejection by the 
other service manager in concert with my salesman. It reinforced negative 
comments from Audi owners I have been talking to in parking lots over the 
past few months.

> Why do so many mechanics laugh when you suggest purchasing an Audi? They
> feel "maaarrveluusss."

*maybe these guys don't know how to work on them.. at my dealership,
*lots of the mechanics drive audis (mostly 5000s, 100s & 200s), because
*they are good cars to be had for a very very low price.  something to
*be said about that.

Thats what has hooked me. Someone said the bigger Audis are 'racing boats.' 
The "family safety" issue + the glorious driving experience--I hope I will 
still speak glowingly 150k miles from now.

Thanks for the insight. I am still leaning away from the contract, but I 
have not rejected it yet. I'll try to negotiate down the cost. If any of 
this sparks any suggestions, please fire away. I planned to phone another 
seller give him my offer to buy his Audi when I saw a crazy ad for the 200, 
called to confirm the price typo, and raced out and bought it when they 
offered to sell it "typo or not" for the newspaper price. ...Timing and 
instincts! What would be your call?
 ----------
From: Eliot Lim
To: EREC - DUNCAN, CAMERON
Cc: 'Quattro input'
Subject: Re: Service contract
Date: Tuesday, November 07, 1995 6:11PM

On Tue, 7 Nov 1995, EREC - DUNCAN, CAMERON wrote:

>
> I JUST purchased a gem of a used 1991 Audi 200S Turbo sedan, 57k miles, 
new
> brakes & tires. The dealer said I could purchase a Service Contract
(through
> Warrantech Automotive) for 3 years/36k/$100 deductible at $1603.00.

5 years ago, i bought a 3yr/50K/$0 ded "contract" for my V8. cost
$800.  i don't think you are getting a great deal..  mine has more
than paid itself off after just a handful of claims,  so i am pretty
happy i got it...

however....

>I have
> not been impressed with service contracts, typical dealer service, etc. on 

> one hand, but I understand an Audi is a high maintenance vehicle prone to
> expensive repair.

you are correct.

>Can anyone help me
> evaluate this? recommendations/suggestions?

my experience has been that the insurance company that writes the
policy will do everything they can to turn you down.  the way it
happens is if your car needs a part replaced whose description does
not match exactly what is printed on the policy, they will attempt to
deny you the claim.

e.g. the brake pressure accumulator is a pretty unusual part that
tends to fail.  the policy will typically cover "brake booster".  in
my case they denied it, but after a bit of sweet talk to convince them
that it is indeed part of the "brake booster" system they agreed to
cover it.

there was also a temperature regulator that needed replacing in the
climate control system.. same scenario, but i got it covered as well.

you will need the cooperation of the dealer to help you get things
covered.  they can massage the repair description to match what your
policy covers.  the dealer has little incentive to help you as well,
because they can charge you more if you are paying out of your own
pocket,  while an insurance adjustor will dicker with them.

also, negotiate a lower price for the "service contract".  if the
dealer can make 1000% profit instead of 2000%, they will still
sell it to you.

> Why do so many mechanics laugh when you suggest purchasing an Audi? They
> feel "maaarrveluusss."

maybe these guys don't know how to work on them.. at my dealership,
lots of the mechanics drive audis (mostly 5000s, 100s & 200s), because
they are good cars to be had for a very very low price.  something to
be said about that.


eliot