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Fidelity Warranty Hell - Shame on Rusty Wallis VW (Dallas).

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Old May 20, 2010 | 05:51 AM
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Default Fidelity Warranty Hell - Shame on Rusty Wallis VW (Dallas).

Gents,

Caveat Emptor. I'm having some issues with my recent RS6 purchase and sent the letter below to the stealership involved - Rusty Wallis Volkswagen in Dallas:

Russell and Carlos,
My name is Greg ....... and I am sure you have been informed by Jason, Ilia and/or Carlos now of the issues with my recent purchase from Rusty Wallis. In any event, I purchased the pre-owned 2003 Audi RS6 - Limited production car (860 units produced/sold in the US in 2003) on 30 April 2010 (Vehicle Identification Number: WUAPV64BN53N904323). The RS6 was delivered to me in Katy, Texas on the Sunday, 2 May by Ilia Pauloo. I purchased the RS6 with approximately 12,500 miles. I would not have purchased the RS6 for even ten or fifteen thousand less dollars ($35,000 or $30,000) if I were unable to purchase an extended vehicle warranty with the vehicle at the time of purchase. I purchased the RS6 for $44,999 less the amount for the trade, my 2006 Volkswagen Touareg $35,000, and with a Fidelity Platinum coverage warranty for approximately $3,450 (Contract #73499627). I financed the balance of the consideration, $14,448, with Wells Fargo.

About a week after I received the RS6 I noticed a popping sound emanating from the front left suspension when I turned. The popping noise was not loud, but did not sound right and the car did not make the sound all the time. More importantly, the RS6 did not have this noise when it was delivered to me by Ilia. Upon hearing the noise, I made an appointment with and took the RS6 to Audi West Houston to be examined last Tuesday 12 May 2010. The Audi service technicians were able to diagnose the noise problem as damaged upper and lower control arms, but with more expensive repairs, Fidelity apparently has a policy of sending out an adjuster to inspect the damage prior to approving the warranty claim. As the General Manager and Used Car Manager respectively for Rusty Wallis Volkswagen, you both are probably familiar more familiar with the Fidelity extended vehicle warranty process than I. The Fidelity representative ultimately made it to Audi West Houston last Friday, 14 May. At that time the Fidelity warranty representative noticed an issue with a transmission light illuminating or a transmission code on the computer diagnostic device, I do not know specifically whether it was a light illuminating or a fault code. Mind you, I did not have any issues with the transmission shifting while I drove the RS6 or with a transmission light illuminating.

On Monday 17 May, I was informed by Audi West Houston that Fidelity needed to know exactly what was wrong with the transmission prior to agreeing to pay the warranty claim (i.e. a simple fault code would not suffice for their purposes). I gave Audi West Houston permission to further diagnose the transmission issue. The diagnosis was ultimately made (a faulty switch) around 12:00pm yesterday. By 2:23pm yesterday, 17 May, I was informed by Audi West Houston that Fidelity was denying me coverage for the claim noting potential pre-existing conditions under the basis that a pre-warranty inspection was not performed by Rusty Wallis Volkswagen.

It seems to me that I was sold something (the Fidelity Platinum coverage extended vehicle warranty) for which Rusty Wallis Volkswagen had no basis (without the pre-warranty inspection) to sell me. As I previously mentioned, I would not have considered purchasing the RS6 without an extended warranty. Keep in mind that the warranty cost ($3,450) is part of the consideration for which I sought and obtained financing ($14,448 over 36 months) from Wells Fargo. In the interim, Audi West Houston informed me that they would honor the significant discount on parts and labor and provide the same discount on the repair to Rusty Wallis Volkswagen if Rusty Wallis Volkswagen wanted to repair the RS6 in Houston. Carlos, you informed me yesterday via telephone that you would work with Fidelity and get me an answer back to me by 12:00pm noon today.

As of this writing, I have not heard back from anyone at Rusty Wallis with respect to this issue aside from a call from Jason in finance and emails by Jason and Ilia Pauloo inquiring as to the price of the repairs.
I attach the correspondence immediately below:
<> <> <> <>


<<9741%20vehicle%20protection.ZIP>>
With all this as background I see the potential solutions to my current situation occasioned by Rusty Wallis Volkswagen selling me the RS6 and a Platinum Fidelity Extended Vehicle Warranty (Contract #73499627) without performing a proper pre-warranty inspection of the vehicle as follows:

1. Rusty Wallis pays to have the RS6 repaired (availing yourself of the discount being offered to you by Audi West Houston - pricing at Fidelity warranty pricing) here in Houston at Audi West Houston or another Houston-based Audi dealership; or
2. Rusty Wallis sends a flat bed towing vehicle down to Audi West Houston to pick up the vehicle. Rusty Wallis then repairs the vehicle in Dallas at a Dallas-based Audi dealership, preferably University Park Audi, and redelivers the vehicle to me in Houston/Katy after the repairs have been completed; and
3. Rusty Wallis pays for the rental car coverage until the repairs have been completed; and
4. Rusty Wallis ensures that the platinum warranty I purchased with Fidelity (Contract #73499627) is prospectively honored by Fidelity for future warranty claims, if any. In the event that this is not possible, Rusty Wallis Volkswagen secures a Fidelity Platinum coverage extended vehicle warranty for the RS6 (Vehicle Identification Number: WUAPV64BN53N904323).

Please keep in mind that the car has now been in the repair shop for a week and one day and I am incurring rental car charges at $35 per day.

I have contacted my attorney in Houston and will take all necessary steps necessary to have the issue resolved in a satisfactory way.

Thank you very much for your time and consideration. Please do not hesitate to contact me directly should you have any questions or concerns.



Kind Regards,



Greg


I do not believe RW VW is willing to help me out at all which is not good.
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Old May 22, 2010 | 01:21 PM
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Dr.Aronis's Avatar
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Let your Attorney fight this one. Take off the gloves.
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