Purchase Price Refund Audi Pure Protection..too good to be true?

[RSG-13]

This is what my dealer is offering? Anyone bought this option? is it worth another $3250.00?? Purchase Price Refund Audi Pure Protection – Audi offers Coverage which doubles the factory 50,000 mile warranty up to 100,000 miles of full mechanical/electrical breakdown coverage. The pricing is as low as $3,250. If you never use the coverage, the $3,250 Purchase Price is refundable to you less a $50 cancellation fee. It is the best of both worlds, protection if you need it and your money back if you don’t. If you plan on keeping the car, get this now, as the Purchase Price Refund option is not available later. This coverage is fully transferable and cancelable. (If you are a low mileage driver a 7 year – 10,000 mile per year option is available at $2450)

[3PedalMINI]

hmm...seems a bit shady to me. Is this through audi or the dealer?

[at1183]

I was offered the same thing... get all the details, it isn't as great as you think

Dont remember what it was, but something turned me off about it.

[snagitseven]

The key phrase here is "as low as $3250". What are the exclusions at that price?
Secondly, the chances of no service needed in the 50K miles is pretty unlikely. So, one claim and the "refund" offer is nil and irrelevant. Finally, it's just another extended warranty..what are the coverage details, deductibles, who backs it, will any Audi dealer honor it and so forth. It's like Vegas - almost always the house wins. Just expensive insurance with lots of probable "gotchas" in the agreement.

[tenspeed]

Originally Posted by at1183

Don't remember what it was, but something turned me off about it.

You pay now and get your money back in seven years if you don't use it. Sounds good on the surface.

One point is that they have use of your cash. When you get your money back, it doesn't take into account any interest and you are getting 2019 dollars - whatever that's worth.

What happens if you have covered work done that is less than the premium? You lose. The odds are always in the houses favor.

You're paying big money for a quality vehicle. I'm willing to bet that it can make 100,000 miles without major problems. Another factor is that a large number of warranty companies go out of business and the policy holders are left with worthless promises. Who is backing this policy? Audi or someone else?

[RSG-13]

OK. I compiled the list of all our questions and sent an email .. lets see what she says.

From the verbiage it seems it is offered by Audi ( Audi offers ...) but of course you never know.

You are right about the house always winning.
I once bought one but by the time i was ready to use it the company went under and didn't get a dime. That's why i am a little cautious this time.

I take my Lexus to Toyota so its not really any different from a Toyota cost. This is my first Audi and i heard repairs are expensive.
Have people been buying an extended warranty for Audies?

[The G Man]

Lexus offer a warranty like that, you get all the money back if you dont use it. The draw back to that type of warranty is that people tend to pay out of pocket for small repairs. All the small repairs will ad up, chances are, you will use the warranty at some point before 100000 miles and lose the refund anyways. I would just skip the Purchase Price Refund Audi Pure Protection plan and go for the regular extended warranty. Also, I would wait another 2 or 3 years before buying the warranty. I believe you can buy the extended warranty 3-4 years after the initial purchase.

[snagitseven]

Originally Posted by The G Man

Lexus offer a warranty like that, you get all the money back if you dont use it. The draw back to that type of warranty is that people tend to pay out of pocket for small repairs. All the small repairs will ad up, chances are, you will use the warranty at some point before 100000 miles and lose the refund anyways. I would just skip the Purchase Price Refund Audi Pure Protection plan and go for the regular extended warranty. Also, I would wait another 2 or 3 years before buying the warranty. I believe you can buy the extended warranty 3-4 years after the initial purchase.

Or pocket the money and self insure off the principle and interest. Depending on future interest rates (and they will go up eventually), the $3250 plus deductibles ($50-$100 each repair?) could end up amounting to $7000 over 7 years. That would pay for a lot of repairs if one kept the car that long.

[chitwwe]

Originally Posted by RSG-13

OK. I compiled the list of all our questions and sent an email .. lets see what she says.

Can you post the questions and responses you received? I'm looking at the same thing.

Thanks!

[snagitseven]

Audi dealer business managers just love these things....a great cash and profit generator.
Audi does not hold any ownership on any of these warranties as far as I know. They may have an arrangement with third party warranty companies for the dealer network but outside of Audi Care and CPO for late model used cars, I doubt if any of these things are backed by Audi. When it comes to extended product warranties, I always pass and have never regretted it.