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Should I purchase an extended warranty?

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Old 09-26-2002, 07:51 PM
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Default Should I purchase an extended warranty?

Hi: I am a newbie to this forum, I just purchased a 1999 A6 2.8Q 19,000 miles fully loaded for $18,000 from a friend, no dents or accidents
Because I am unfamiliar with the track record of the 1999 A6 2.8Q your valuable input would be greatly appreciated. Should I purchase an extended warranty from the local Audi dealer.

General Electric Extended Warranty--70,000 miles coverage
3 Star covers the engine and drive train only---the cost is $1,690.
5 Star covers the car bumper to bumper--the cost is $2,695.
The car just ended its factory warranty on 8/02, so right now I am kind of nervous.
Again, thanks for your input.
Bocky
Old 09-26-2002, 08:10 PM
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Default Your friend bought a 1999 in August '98? Anyway, I'd get an extended warranty, but not that one....

Seems VERY expensive, but maybe term is longer than most (which is usually 3 additional years). I have Autoshield and, in spite of many bad stories I've heard about them, they have been very good to me on two cars.

Get the warranty, but shop around for the best price.
Old 09-26-2002, 08:38 PM
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Default No, price isn' t the only issue. GE offers an "exclusive" warranty which covers more than others!

Was highly recommended by MoBrazn, especially after seeing how (was it Continental?) would exclude items that you would think were covered, for reasons similar to what Audi uses. Not to mention how many things aren't covered.

So don't just consider price. Read up on the pitfalls of warranties, and then weigh your priorities.

I'd consider someone with a good reputation and price on the exclusive warranty, like WarrantyDirect (which we use and like for our A4), and compare to GE's exclusive warranty (meaning they state what it "excludes" as a short list of items, rather than listing what is included only, leaving you unclear on what exactly isn't covered).

For more, see:<ul><li><a href="http://www.netwiz.net/~jds/files/a6_links.html#warranty">http://www.netwiz.net/~jds/files/a6_links.html#warranty</a</li></ul>
Old 09-26-2002, 08:47 PM
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Default Yes without question

Bumper to bumper. Research the dependability issues that may or may not have hampered this model (and like models). $2,700 is cheap insurance for 70,000 miles when buying into a mystery.

--BEAU
Old 09-26-2002, 09:29 PM
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Default Thanks, Beau,Chuck540, & Stoney. Has the 1999 A6 2.8Q had

any issues regarding reliability, engine or drivetrain failure, or any part major part in the car that has proven to be unreliable?
Thanks for your input.
Bocky
Old 09-26-2002, 09:33 PM
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Default Buying an extended warranty is not a wise financial decision unless....

you can not finance repairs youself. In other words you are completely tapped out. The sellers are projecting to make a profit, possibly 20%, after all expenses. That 20% is better in your pocket. Remeber also that any warranty does not cover normal wear and tear items. My recommendation is to play the odds and not buy. I am not a gambler by nature.
Old 09-26-2002, 10:00 PM
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Default Re: Your friend bought a 1999 in August '98? Anyway, I'd get an extended warranty, but not that one

According to the registration the car was purchased by him in 8/99 and the 3 year factory warranty ended on 8/02. I will keep shopping the prices on the web and with the dealer. AAA also has a similar protection plan at $2,300.
Bocky
Old 09-26-2002, 10:18 PM
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Default Disagree. If you have a ton of cash, the price is minimal. If you don't, its valuable insurance...

The general rule says don't get extended warranties on items you don't expect to last anyway, like VCRs and radios. Just buy another, you can afford it.

But when you have two turbos, or (in my case) a $10,000 transmission, it is very wise insurance. Sure, the average buyer spends a couple hundred more on the policy than they would have on service. But a few buyers are saved from very large expenses... the real value of a policy.

The "logic" of comparing payouts to costs is flawed. Consider Stock Options... you buy them <i>in case</i> you need them, not expecting them always to be used. It is paying a small amount to protect you against a larger loss... thereby reducing risk. The value of the protection from a large loss (or the chance of a large gain) is worth the cost of the derivative. This is the only basis for analysing any such policy. "Evaluate it in the simplest terms possible, but no simpler." You logic is too simple to make any sense.

For our A4, my wife and I paid a relatively high amount for a very good warranty, and it has both paid for itself (turbos replacements, among other things) AND it has given peace of mind and protected us against even larger losses. This is why you get it, to protect you in the unlikely event of a large loss; not because you think it will save you money on average. That is just wrong logic regarding any insurance or option.

This guy's A6 is a relatively early version, like our A4 was. For these, extended warranties make even more sense.
Old 09-26-2002, 10:27 PM
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Default As far as I recall, early cars had lots of small problems, including suspension links or arms...

... which can add up. Most cars simply had lots of small problems, most of which are probably solved by the age of your car. Perhaps others will offer specifics, but nothing jumps to mind.

If it were a turbo car, I'd be more concerned about a warranty than for the 2.8. An automatic is more of a concern than a stick. Not sure if policies cover manual gears; probably doesn't cover clutch. But should cover an automatic.
Old 09-26-2002, 11:17 PM
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Default You're welcome...

The 2000/2001 A6 models had questionable reliability according to Consumer Reports. I was unable to find a reliability evaluation for a 1999 A6.

I purchased an aftermarket warranty for my Volvo 960 and paid ~$3,000. At the time it seemed reasonable given the car's lack of servicing records. I estimate that I used 75% of the $3,000, but it was money well-spent for peace of mind and full coverage.

My incoming 2002 A6 4.2 enjoys Audi's 4-yr/50,000 mile warranty; I just fill the gas tank, and I prefer it that way.

--BEAU


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