VW Polo - Used Warranty-Buy now/after existing warranty ends - bodd

I’m picking up a three-year old Polo from a VW dealer soon.

The warranty spiel says “every used Volkswagen comes with the following: Minimum 12 months Volkswagen Warranty against mechanical failure”. This is fair enough, but the dealer needs to pay his bills too and offered me a further two-year warranty for about £350 a year.

For me, a warranty is like health insurance (although maybe not). There will be exclusions, and if you hopefully stay fit and well, you could be forgiven for thinking you’d wasted all that money.

That’s not my question, though. When the dealer offered me the two-year warranty, I asked him five times why I couldn’t just buy it at the end of the existing twelve-month warranty instead. He didn’t answer, so I went home to check this website.

www.volkswagen.co.uk/owners/plans-and-policies/ext...d

If you have bought a New Volkswagen in the UK or a Volkswagen Approved Used Car you will be written to before your warranty expires and invited to purchase an Extended Warranty.”

This suggests I could buy an extended warranty in twelve months instead. Or maybe my circumstances will change or further research might suggest the warranty has more clauses than a santa convention.

My question is: Why would someone in my shoes buy an extended warranty now? Is it the same policy in 12 month’s time as now? It seems a bit biased in my favour. If the car is perfect over the next 12 months, why bother? If the car is an absolute lemon, an extended warranty might be just the ticket.

VW Polo - Used Warranty-Buy now/after existing warranty ends - Andrew-T

Warranties are just insurance policies. You are betting the company that something big will go wrong and they will (may) fork out. They are gambling that it won't, and the stake in your case is £350, non-returnable. If you think you are right - or you don't really trust a 3-year-old Polo - go ahead.

Insurance companies need to make a profit, so like bookies they set the odds in their favour. Your best strategy is to put the £350 in the piggy bank in case of a rainy day. If it doesn't rain, spend the money in some more enjoyable way.

VW Polo - Used Warranty-Buy now/after existing warranty ends - bodd

Thanks. I hear what you're saying, but it seems I have three choices:

a) Buy no extended warranty

b) Buy the extended warranty now

c) Buy the extended warranty in 12 month's time when the existing warranty expires

The pros and cons of (a) are understood. However, if one had to choose between (b) and (c), I'm wondering why anyone would go for (b). It favours me too much. It's like me taking out a health insurance policy aged 40 or being able to wait until age 50 and paying the same price.

In a year's time, I'll know the car well and know if things are deteriorating, etc.

VW Polo - Used Warranty-Buy now/after existing warranty ends - RT

Find out if the price will be the same in a year's time.

VW Polo - Used Warranty-Buy now/after existing warranty ends - Collos25

With a secondhand VW bought from a VW agents you should get 12 months VW assist warranty which covers just about everthing including home visit.The second and third year offered by the dealer is not worth the paper its printed on.

VW Polo - Used Warranty-Buy now/after existing warranty ends - groaver

Find out if the price will be the same in a year's time.

With VW you just know it won't be.

Surprised the salesman didn't offer that up as justification for buying now!

What do they teach them nowadays.?

Edited by groaver on 04/07/2013 at 01:54

VW Polo - Used Warranty-Buy now/after existing warranty ends - Auristocrat

Are you sure the extended warranty being offered is a VW warranty??

VW Polo - Used Warranty-Buy now/after existing warranty ends - bodd

It's a VW Warranty underwritten by Mondial as they all seem to be.

Anyway, to close this one out, I went to this site:

www.volkswagenextendedwarranty.co.uk/

and gave them a call. They confirmed that a two-year extended warranty taken out in one year's time would cost the same (allowing for inflation and the usual annual increases in any insurance) as if I bought it now.

There are of course other companies offering warranties, and now I have a year to get to know the car and think about it.

Summary - don't buy an extended warranty from a dealer. Buy elsewhere.

VW Polo - Used Warranty-Buy now/after existing warranty ends - Auristocrat

'Summary - don't buy an extended warranty from a dealer. Buy elsewhere.'

Not necessarily true. When we bought a Mazda extended warranty for our 57 reg Mazda 2, our Mazda main dealer was cheaper than the Mazda UK website. Same Mazda warranty.

Toyota underwrite the Toyota extended warranties themselves, and use a corporate services company to manage it on their behalf.