Re[2]: A4 Quattro Extended Warranty

[Michael_Jacobs_at_Frontier-1@smtp.frontier.com]

     Hello everyone, I've been lurking here for a while waiting for my A4 
     1.8TQ Manual to arrive.  This issue of an extended warranty hit home 
     as I plan on owning the car for at least 5 years.  I called my dealer 
     and asked if there was an extended warranty available.  His response 
     was that there is a GE one available for around $1100? he thought.  He 
     also mentioned that there is an Audi warranty coming in the next month 
     or so.  As my car isn't due until MArch, this is no big deal.  I can 
     wait.  For the gentleman paying $2500 for the GE Warranty: Bail Out 
     Now!  You are definitely paying too much for the warranty.  One other 
     tidbit...my dealer said you cannot buy a new car warranty after you've 
     had it for a while.  This is a much more extensive warranty than the 
     used car warranty someone mentioned.  So you definitely need to make a 
     decision now.
     
     Good Luck!
     
     Mike Jacobs
     <jacobsm@frontier.com>


______________________________ Reply Separator _________________________________
Subject: Re: A4 Quattro Extended Warranty
Author:  Glenn Lawton <lawtonglenn@gsmai.com> at Internet
Date:    1/2/97 11:08 AM


ENEY@aol.com wrote:
> ...1997 A4 quattro...GE 7yr/100,000 mile extended warranty...$2500.
     
Presumably, it doesn't cover wear items like brakes and tires, so what 
can you expect to go wrong between 50k and 100k miles
     
 exhaust  $800 -100 deductible
 turbo  no
 struts  $600 -100 ded
 engine  no
 a/c compressor $800 -100 ded
 steering rack no -100 ded
 sunroof motor no
 window motors no
 brake bomb $300 -100 ded
   ---- ----
   $2500 -500
     
Most of the stuff I've had to replace on my history of 5 quattros 
has been on the older cars, after 150kmi, after 8 years
     
Also, you should think of the net present value of the expenses, 
since you are spending the money now to get a benefit 4-7 years 
from now. At an 8% discount rate, you would have to have $950 
reimbursed (after the deductible), in each of years 4,5,6 and 7 
to equal the value of $2500 today.
     
I'd get out of the extended warranty contract if I were you.
     
Glenn