SDCEB

Has anyone priced out the warranty service that Costco sells? I looked at it on their website and the coverage sounded pretty good, but didn't fill out the form to find ou what it costs. I also don't know how much it increases as time passes.

mjm3457

Here's another perspective on your $3250 warranty. You are paying that premium "up front" for protection that doesn't start for a minimum of 4 years. You could instead put that money in an investment with a 7% return which would give you $4260 after 4 years. That's the money you'd have to pay for repairs from that point forward until 7 years or 84,000 miles from puchase, or whatever the extended warranty period was. Also, in a sense you buy a "free option," by which I mean you can watch the reliability of your Q5 during the first 4 years. If it is troublesome, you can trade it at the end of the factory warranty, but if it has been reliable and you like it, you keep it. Up until this point it has cost you nothing. From here forward you are self-insured and pay for repairs yourself from that $4260+, and still growing, as one option. You always have the option of buying an additional warranty, although it may cost a little more then, still you will have a better understanding at that time of whether it is worth the money or not. In fact, you can buy an extended warranty at any time durng the 4 year factory warranty period, and even beyond. I am still being hounded to buy an extended warranty for a 2007 A6 that I traded 1-1/2 years ago.

I just took delivery of a new Q5 3.0T. Needless to say I did not opt for the extended warranty.

Telate

The only problem I see with having to pay for the repairs yourself, is if you don't know much about cars. I believe Audi's can be fairly expensive to repair if you are not able to source out cheap parts and do it yourself. One example I've seen on the forums is the Carbon build-up - I remember someone saying that it would have cost something like $4000 if it wasn't under warranty (I don't think this is an issue with the 2.0T, but a good example on repair costs)

mjm3457

The customer always pays for the repairs; think of warranties as pre-paid repairs. The cost of the factory warranty is added to the price of the car by Audi, and is not optional. If you buy an extended warranty, then you pre-pay the average repair cost of your car for the extended warranty period.

Here's another way to look at an extended warranty. Remember Woody Hayes said that when you throw a pass only 3 things can happen, and two of them are bad. Same with extended warranties. Let's say you buy a 3 year 84,000 mile extended warranty up-front for $3250. 1) If you sell, trade, or wreck the car during the factory warranty period, that's a bad outcome. You lose $3250 plus the accrued interest to that point. 2) If your car runs beautifully for years 5 to 7 with no repairs, that's a bad outcome. You've spent your $3250 (and have lost a total of $5218, at 7% interest compounded for 7 years.) 3) If during years 5 to 7, your car needs warranty repairs up to at least $4260, you get your money back. That's a good outcome. The truly best outcome is 2) above, but is bad because it wastes your money, and is not the best outcome in terms of the investment. The least desirable outcome, 3) above, is the one you are betting on when you buy the warranty, is the best as an investment, but is that what you want?

For me, I like having options, and not commiting my money up front. As I said, if the car is un-reliable during the factory warranty, then sell or trade it in the first 4 years. But if has been reliable, keep it, and maybe consider an extended waranty at that time. Or just self-insure the repairs which you are doing anyway by buying the warranty. Also, you never have to hassle with the warrantor, over what they'll cover when repairs are needed. And what do you do at the beginnng of year 8?

Q5WERTY

Well put, mjm3457. I like the Woody Hayes analogy. That certainly adds perspective. You've convinced me not to waste my money on the extended warranty. It just didn't seem like a good value to me and you shed light on exactly why.

I just got back from taking delivery of the car in Ingolstadt. It is such a great car and I really hope I have no troubles with it. It is a real pleasure to drive, especially on the autobahn, where it was made to be driven. It is going to be painful to have to drive it so slowly over here. The Q5 just wants to cruise at 80-90 mph.

While I'm waiting the expected 8-10 weeks for it to arrive here. I'll be thinking of where to invest my $3250 to get the 7% return...

mtnbikerva1

My impression is the 3.0t has REPLACED the 3.2 and is rock solid/no problems.

Vespaqueen

I'm getting ready to purchase my first Audi. Nervous about the past expensive problems, but, sounds like Audi has greatly improved their mechanical issues. I lease and I figure if I stay within warranty time limits I should be ok unless tires and wipers go. Correct? Was considering an Infiniti FX50 because of reliability. But, they just aren't as beautiful in design.

Q5 Bob

With the advent of the 2.0t, 3.0t and hopefully, Hybrid, TDI and SQ5, Audi's reliability ratings are on the upswing.

snagitseven

I also like mjm's analysis. Another way some people look at warranties is they feel they're like insurance policies. However, since extended warranties are far less inclusive than say, home or car calamity insurance, the risk to value proposition is much lower. Meaning, if your house burns to the ground, you're likely covered with your home owners policy. If you die, your life insurance policy will pay out. However, while your car policy will pay out if your car is totaled, an extended warranty will only provide loss of investment.

Good luck on the 7% return these days. Unless you are lucky in the stock market, it will be tough to achieve. Still, the money is yours unless and until you need it for a repair.

drunkenup

1+ the lack of "my car is a lemon" threads, at least in this section of the forum, alone says something about the Q5's reliability. Different engine, but our 3.2 Q5 has been very reliable, carbon buildup issues aside.