Guys,
I purchased the Audi Extended Warranty when I picked up the car (new).
I cancelled it 2 months ago, with 30K on the clock, never getting into the extended warranty period by mileage or time.
I paid around $2100 for it.
Today I got a refund check for $1500.
When I called and asked, they said they will refund it pro-rated from when you bought the car, regardless of if it is in effect.
Also was told that if you buy in the 2nd year, and cancel in the 3rd, they will prorate it from the day the car was bought.
Is this totally crazy or what?

Agreed it is really annoying particularly as it would never have been used during the factory warrantee but it is 'standard issue' for any manufacturers or 3rd party policy... Not just Audi! It is a big profit center!

Also, if you buy a warranty in year two, it will probably cost more than year one....even though it could not have been used in year one.

I buy warranties as piece of mind. Most times you'd do better putting the money in the bank, but it works for me....