Audi A4 2004 and earlier

lauk0dg · October 2002

Well to further complicate the discussion, the S4's have white needles and red backlit on the gauges, which are exactly the opposite of the A4's. Pretty cool actually, but I like mine better. It's a whole lot better than the BMW's all-orange red layout. I agree that although the VW gauges look cool with the blue/purple, they are not as distinct at night as the Audi gauges. My girlfriend commented that though she loves riding in my car at night because of the red center console layout and the "warmth" it brings.

I don't think they are EL on the A4's.....and the ones on the 02 A4 are similar to the pre 02 A4's.

Well I read that the new A8 will have the Nav plus with color screen (finally) instead of just a verbal and little screen command. Perhaps it'll move down the chain eventually to the A4.

Speaking of which, I was pricing out the 03 A4 the other day and I found out that the rear seat warmers are not an available option anymore on ALL 03 A4 sedans (didn't check the Avants) and even not on the 03 A6 3.0. Apparently they won't be offered unless you buy something at least of a 03 A6 2.7T. I know this wasn't offered either on pre-02 A4's, but c'mon AoA, what are you thinking?

About Chicagoland pricing, since we have 7 Audi dealerships in here, I would highly suggest you visit them and get their pricing. Or even call them up and see if they'd bid for your business either by fax or email. Then compare that to carsdirect.com. I shopped around and I saved quite a bit due to a big variety of pricing among the dealerships.

Billy

tiredofmanual · October 2002

My digicam does NOT do a good job in the dark, so this is the best I can do. I should also point out that when I turn the flash off, it insists on taking a longer exposure shot, so this pic is a little less sharp than real life. I also don't think that the colors are captured accurately. Maybe this is a good excuse to invest in a new camera...

vtskier · October 2002

I'm in the process of negotiating for the best price on an A4 Avant that I plan to order soon. I went to a dealer in the Albany NY area (if you live there you'll know the dealer name) I went in person, talked to a salesman, told him I knew what I wanted and said I was shopping for the best price. He went on a tirade about how they don't play those games, yelled about how I proably shopped up and down the east coast looking for $500 and then in a rude fashion informed me that they get 5% over invoice and do not negotiate. I have never been treated so badly while looking to spend $35K dollars. Needless to say I wouldn't buy an Audi in the Albany NY area even if it was the only dealer in the US. I've gotten a couple of prices in the 4% over invoice range. How's that sound?

nerd · October 2002

Since Audi does not have a dealer holdback policy, I think 4 percent over invoice is a fair price. I would ask the salesperson about the advertising charge that might be added on top of the four percent.

Edmunds has some guidelines on pricing on this website.

I agree with you about the rude salesperson. Don't do business with them.

scirocco22 · October 2002

Peter-- I know the feeling. We have a local Audi dealer here in my area which has the same attitude. In past postings, I've called their attitude "arrogant" and definitely went elsewhere to buy. If they hadn't been so arrogant but rather made me feel good about being a potential customer of theirs, I may have relented and considered paying a little more if they gave me the feeling that I'd be treated well in the future. But I didn't get that feeling at all from their rude attitude. Yes, as I told Rich, you shouldn't have to pay any more than 4% over invoice no matter where you are located.

But I'd also urge you to read Mark's recent comments on the A6 board. It definitely sheds a different perspective on the dealership experience and why you may not want to make the initial price of the car your main priority.

And to answer the question you posted on the Avant board, yes, an "order" is included as part of the dealer's allocation. True, some people don't realize that ...it surprised me when my dealer explained it to me.

brian-- No, that's a nice (and very accurate) pic. The illumination appears exactly like my 2001 (but without my beloved voltmeter and oil temp' gauges *gloats*) and definitely doesn't have the electroluminescent effect. I don't necessarily think that's a bad thing.

As everyone can see, the "white" markings appear much more distinct than the red so you can imagine what it would look like in all red ..."muddled" at best. I think it's a good combination to have the white hash marks. And as I said, they almost appear bluish after you look at them for awhile.

Paul-- Forget what I said about the Jetta's headlights having a "thingie" coming out of the reflector. After looking at one close up yesterday, I realized it's just the support for the center deflector. But I still don't understand why the Jetta's lights look whiter and brighter than anyone else's multi-reflector halogens (?).

--'rocco

jbrady3 · October 2002

I just picked up my 2003 A4 1.8T quattro, it's real sweet. I had a similar conversation with the Audi dealer in West Long Branch, NJ. The guy told me that we would not negotiate from $300 under MSRP, and since they were a "Porsche/Audi" dealer they didn't negotiate over a "few hundred dollars", whatever. In addition, the guy tells me they were including floor mats which made up for the difference in price that other delaers in the area were offering. This made me so mad that I wouldn't have bought the car from him even if he offered it for $1000 UNDER invoice. Also, he told me he was "throwing in" a free loaner when my car was serviced, which I believe is standard for any new Audi purchase anywhere. I finally got the car at the Princeton Audi dealer for $720 over invoice, $1859 less than the offer in West long Branch with the same 3.9% financing, so it pays to shop around, and to negotiate for a "few hundred dollars". The service was fantastic, the salesman was very courteous and honest. The entire transaction was done via email and phone, I spent 30 min at the dealership to sign papers.

Some of these salesman just don't get it, and some seem to get angry when they realize that you have actually researched the purchase. If they give you some line about how they don't negotiate just walk out, there is probably a better deal somewhere else.

scirocco22 · October 2002

Jason-- Yes, I fully understand what you are saying. I too, believe that $1,859 is a substantial amount and wouldn't consider that only "a few hundred dollars." But I'm also becoming more cognizant of the points Mark makes as I become "older and wiser." Again, I urge everyone to read his comments over on the A6 board. Many of us are coming to Audis from "lesser" (for lack of a better description at the moment) brands of cars and we are used to the ritual of playing the "games" that come with buying those types of cars. As we move up to Audis, I'm starting to find a different mentality among owners --and dealers as well. I for one, am learning that initial price might not be the most important aspect of the car "owning" experience. Although I still continue to be price conscisous with any purchase I make, I'm starting to question the practice of bargaining too hard for the initial purchase price. Ah, that fine line ...I'm beginning to feel the urge to establish a relationship with my dealer and yet don't necessarily want to pay an exhorbitant price for it either. Yes, we do, as Mark states, need to become "better customers" and in return, we receive better service and potentially become happier with the overall "owning" experience.

And no, all Audi dealers aren't required to provide free service loaners. It seems like most do but it is not a requirement. Audi, the manufacturer, does provide the customer a loaner only if a warranty repair requires the car to be kept overnight.

--'rocco

markcincinnati · October 2002

If the salesrep or the dealer are "behaving badly" -- well then that is a reason to go elsewhere. However, I would, consider that my experience over time would tell me that I can see some reasons that it may cost less in the long run to not hammer too much on the price up front.

The reasons and examples are many and I cannot list them all and I will not use up more disk space to attempt to persuade anyone any further -- your circumstances may be different than mine or 'rocco's. Suffice it to say that there are differences in the "buy/sell dance" and the long term ownership experience when dealing with (many) high end autos.

This dealer may be slime for all I know or the next guy might just be interested in moving a volume of cars and will be a nightmare after the sale.

My advice: work on the relationship and upon stating your expectations for the relationship after the sale. The sales process is a few hours to a few days in lenght the ownership experience is probably a few years.

I'd pay more for a better ownership experience rather than a quick hit up front. It is amazing how far $1,500 DOESN'T go if you need help and only get "what is required."

The above opinions and conclusions come from years of buying from the same dealership and from the same car company. Be guided by what you want in the overall relationship not just the "one night stand" to borrow a more crude analogy.

andys120 · October 2002

Decontenting? bummer. Oil temp is a useful thing to know 'cuz your motor isn't really warm if they oil's not.

lauk0dg · October 2002

are dropped on the B6 A4's starting from 2002.

Billy

jbrady3 · October 2002

Well, I certainly understand and appreciate Mark's point of view, but he is obviously in another league of car buying all together. I am not really concerned with the $1800 I saved as much as the interaction I had with the salespeople involved, because I would like to establish a good relatonship. The first guy I discussed the Audi with reminded me of the stereotypical used car salesman, using every line from the book. Apparently, from what I've heard, many other people have had problems with this particular dealership. I believe I have started a good relationship with a differnet dealer, and in the mean time got a fair price on the car. For the effort, I've already hooked my salesman up with a buyer for a TT, and would recommend anyone I know to go through him, and I will probably buy my next one there. In my opinion, the burden of proof is not on the buyer, but on the seller. If you treat me well up front, I'll be a damn good customer. Maybe I am naive, but the perks that Mark speaks of seem to be the exception to the rule, and possibly unobtainable to the average customer. I hope not, as I am looking forward to being an Audi owner for many years.

rich_a4 · October 2002

rocco - Maybe they saw the email thread, Edmunds has updated the tmv to $32,375 (about 7.4% over invoice). Thanks for the input.

I looked at the discussion on the a6 board regarding after service experience and couldn't agree more. I work in professional services and couldn't agree more about the customer who always wants the lowest price, they tend to be a huge pain for me as the vendor and usually end up being "less pleasant" to work with. I'm willing to pay a fair price and value the business relationship with the dealer.

I'm hopefully visiting dealers this Saturday and *may* make a purchase. Any thoughts on lease vs. premier purchase vs. lease? I saw some discussion elsewhere on the board.

Thanks.

rich_a4 · October 2002

Sorry, I meant lease vs. premier purchase vs. buy

... too many hours at work today

tiredofmanual · October 2002

This one really comes down to whether your state has tax laws that make leasing unattractive. Illinois is such a state, so I went with the premier purchase

greggsa4 · October 2002

The a A4 was a horrible nightmare as far as maintenance was concerned. I will never buy an Audi again. Excessive repairs at excessive costs. Welcome to the world of Audi.

markcincinnati · October 2002

Perhaps you don't want to relive the pain -- but could you share your experiences?

And how many Audis have you owned? If this opinion was formed after your first Audi, I certainly understand but did you like the car enough in other areas to consider the brand again or was it the dealer or what?

Inquiring minds. . .

oliviertnguyen · October 2002

Jason,
I see you have a very good price on Audi A4. the price that you pay include all option ? or just with the standard option ?
please let me know. I am also on the market to buying a car right now and audi A4 is my target.
if you can please email me at oliviertnguyen@hotmail.com. I am in Sommerville area. Yesterday i checked with flemington audi car dealer and they just not a price bargain people

thank you in advance
Olivier

rich_a4 · October 2002

I went ahead and bought the car this weekend and picked it up yesterday. I decided to go ahead and buy it with financing because the salesman was trying to box me into giving him what I wanted my monthly payment to be on the premiere purchase instead of negotiating the price. I learned a lesson for my next car purchase - go in knowing how you are going to finance the car because I think I lost some negotiating room by switching to a purchase mid-deal. I didn't pay MSRP but I don't think I got a great deal either. I think the Chicago market may not have much room for negotiation.

Anyway, no more on price! I have the car and now I'm going to have fun driving it!

Any advice on breaking the engine in? The salesman said just don't take it above 4k RPMs in 1st for the first 1000 miles and don't drive it at constant speeds for a long time during the the first 100 miles. That sounds too good to be true - any differing opinions?

rich_a4 · October 2002

I should have said:

"...don't drive it at constant speeds for a long time during the the first *1000* miles."

dtwleungnyc · October 2002

LOTS of city driving, I am not kidding. You want to fluctuate the revs for the engine so that a "groove" will not develop. Have fun.

guderian · October 2002

I've spent $5500 on non-warrantied repairs on my vehicle...excessive (96 A4 new..mlg = 83k). What bothers me most, is the fact that these problems are recurring and show up conveniently after the period parts warranty expires...here is a short list...(Idle stabilizer valve 3 times)it kills your engine when not in gear...lots of fun to have your engine die and steering lock when your in the middle of a turn and downshifting...several light bulbs have been replaced(dash light needed excessive work...(control arm 2 times(car sounded like a cheap piece of crap going over bumps...))...the moonroof stopped working at 45k and I wasn't willing to pay$850 just to have it probably break a year later...wiper blade motor...engine thermostat replaced...rear diff seals leaking and replaced...tie rod ends replaced...sway bar links replaced...unless the product has improved and the problems addressed(doesn't do me any good now)...get a bimmer or an acura. I still feel sorry for Audi for the false accusations they suffered at the hands of 60 minutes...maybe this was their payback...and lastly, the dealership experience is/was demeaning and insulting...mechanics are to often clueless...

jaydoll · October 2002

Please be advised that a seller on ebay named wholesale4u101 is selling BMW, Audi and Mercedes rims. Currently he has RS4 celebrity wheels listed. I have been ripped off by this person and if you forward money to him you loose your money also. Please notice that if you do a search for this seller name you will find that he has done a recent name change as indicated by the sunglasses and also note that no specific location id given. Please email me if you wish more specific info.

jaydoll · October 2002

You must be talking about Langan Audi. The salesman are rude and the only thing than the sales staff is the sales manager. The quoted me the highest price of all the dealers I talked to. I have read on the net that their service department is not that good either.

toast99 · October 2002

Have any of you Minnesota (or anywhere else for that matter) Audi owners had any dealings with Anderson Motorsport located on Quattro Drive in Chanhassen MN?? Any input would be appreciated.

tmck · October 2002

Last week as I was backing out of the garage, the car started its rough idle and the check engine light came on and started blinking. I drove it around the block to confirm my suspicions which were a bad ignition coil. I had it trucked to Spokane Washington, 90 miles to the North. Several weeks earlier I had done the same thing and had coil to #3 cylinder replaced. Yesterday I got up early and walked downtown to the bus stop and took the 6:45 AM bus to Spokane and then a taxi to the dealership to pick up the car. The coil to #4 cylinder had gone out. The service manager had replaced it plus the coils to cylinders 1 and 2. I now have all new ignition coils. Love my Audi but when they had a rash of coil failures, they should have nailed their supplier and recalled all cars with an early build date (mine was 7-02)to replace the bad coils. On the way home I zipped along the 2 lane at 50-60 mph on the first snowfall of the year in my 1.8 Quatro getting over 30 mpg. Gotta luv it.

marleybarr · October 2002

I believe I bought an Audi part there a while back for my '90 Audi 100 5-cylinder.

matluoma · October 2002

toast99 -

I haven't been there, but may have some info for you...

if you are looking for some feedback & audi info specific to MN from mn try mnaudi.com

jj runs a nice forum and there are lots of folks who have been over to Anderson & would be glad to answer your questions.

uptowner · October 2002

I second the suggestion to visit mnaudi.com. We are now 300 members strong and growing!

Anderson is an awesome facility with knowledgeable and personable mechanics. They also have a website http://www.andersonmotorsport.com

and are a authorized MTM dealer.

Any further questions?

scirocco22 · November 2002

Any comments on this upcoming model?

--'rocco

a4_4vince · November 2002

Rocco, is it even going to come into the NA market? It'd cool if it's coming...but too bad I already got mine. Heard that it has max torque of 177 lb/ft. Without looking at the torque curve, can't tell how it will perform.

vince...8o)

black_tulip · November 2002

Need some advice on replacement tires for my Y2K 1.8Q. I did not like the goodyears that came with it at all and leaning towards Michelin at this point. I was thinking about X one but the salesguy says since they are not H rated, I would lose a lot in handling, braking etc. and my only choice in Michelin is MXV4. Any suggestions?

neaudi · November 2002

My lease on my 2000 A6 2.7 is up in a few months and I am contemplating leasing another A6 2.7, an A6 3.0, or an A4 3.0

I love the looks of the new A4, but am concerned about losing the spaciousness of the A6. I have heard reports stating the driver's leg rubs against the center console and is annoying. Also, very rarely are there adults in the back seat of my car, just my 2 kids.

Also concerned with going from 250hp to 220hp.

Anyone been there, done that?

audibon · November 2002

My suggestion would be Dunlop. I have had them on my old Supra and a couple of Accords. Michelins are rather pricey even through Tire Rack or Discount Tire. The only issue with Dunlops are some feel wet weather and/or snow traction suffers somewhat with Dunlop over Michelin. I guess it would also depend on where you live (weather conditions) and the type of driving you do. If you are agressive or do a lot of highway driving in relatively dry weather Dunlops should be good. Maybe others can throw out some more suggestions. Keep us posted on what you do and the results. Good luck.
Brian

JBaumgart · November 2002

My suggestion would be to check TireRack.com and first bring up all of the tire choices that fit your car/wheels. Check the prices and narrow the list down, then look at the various test reviews and especially the comments of people who've purchased them. Decide what's most important to you and then make a decision based on what you read. Remember that each of the brand names makes many kinds of different tires, each with their own pluses and minuses, whether you are talking tread life, noise, snow/wet traction, handling capability, ride, braking, warranty, and price - invariably you will be making compromises, but focus on what's most important to you.

andys120 · November 2002

That's good advice from previous 2 posters. Let me add one thing. Watch the treadwear ratings!
Quattro drive eats tires particularly those with soft compounds, which includes most tires with V-ratings and higher. I got roughly 25k out of a set of Goodyear F1 Steels and replaced them with Dunlop A2s which should do much better (higher treadwear rating).

uptowner · November 2002

Exploit your quattro, you already have an unfair advantage!
B. Tulip are you only looking for allseasons? Since you live in NJ,a preferable choice would be both a dedicated summer and winter set. Allseasons are a compromise of performance in every aspect which is fine for soccer moms but if unparalled safety and performance is what you're seeking forget 'bout it.
The Nokian NRW WR's are winter champions. The compound and tread pattern is better designed than most winter/snow tires. Why? Most snows sacrifice a great deal of dry handling, responsiveness, and longevity for VERY aggressive snow traction. Unless you drive on seldom traveled roads of Alaska where snow trucks never venture agressive snows are silly. Think about how often do you actually encounter unplowed completely snow/ice covered roads in the winter? MAYBE 3-5 times/year? And if you do the Nokian's would perform and how! They are better than ANY allseason in snow, slush, and wet conditions and better than any other snow tire in dry, wet, and emergency (evasive manuvers) conditions.
For summer shoes, it's a toss up between the Bridgestone SO3 (quick, nimble, and quiet), Michelin Pilot Sports (the same but noisy), and the Toyo T1s (all of the above but possess a higher treadwear rating).
Hope this helps.

uptowner · November 2002

I disagree. Quattro is actually easier on tires because the engine torque (what accelerates your car and therefore spins the tires) is distrbuted among 4 drive wheels as opposed to 2. Try to spin the tires in a FWD and then in your quattro. It will be much more difficult in the Audi if not impossible unless your car is chipped or your tires are low performance (read "green tires").

Now what your experience may be a result of a sportier suspension than you're previously used to. A "sport" suspension puts much more stress on tires and their lateral adhesion limits, which could lead to faster treadwear.

andys120 · November 2002

In the real world my soft compound Goodyears went very quickly (they were superb tires otherwise).
Some would say that it's worth the performance advantages.

I think otherwise. Good summer-only tires go $700 or more a pair. At those prices I need more than 25k out of 'em. So far I find the Dunlop A2s quite nice and they're only around $500 a set. Personally I'm looking for good steering response and wet-weather braking, I don't care much about 1g cornering.

Short of autocrossing I find my A2-equipped Sport Quattro terrific in all conditions except serious snow (for which I have a set of Blizzaks).

black_tulip · November 2002

Thanks guys, for all the responses. I checked out tirerack and at this point, Dunlop A2 seems like a nice choice. I would rather have one set of tires that I can use during dry or wet(rain or mild snow) conditions. A2 seems like a perfect candidate and is pleasantly inexpensive.

mbnut1 · November 2002

I just installed A2's on my '98 A4 Quattro w Sport and am pleased with them. I had been running the OEM z rated tires (SP8000E's) which were fine. I had gotten through a couple of light winters with them but figured I didn't want to continue to press my luck. The A2's are nice. They avery quet and don't tramline like the SP800E's did. Not quite as responsive but that is to be expected. They took the car in the direction that I wanted to, that being a nicer all season performer.

greggsa4 · November 2002

Enjoy your car now because in few years and a few thousand miles (mine at 37000 even though I properly maintain my vehicles) you will most likely be investing about another $1700 in a new turbo. I hope you have better luck than I did. The A4 was THE WORST CAR I'VE EVER OWNED. I also had several of the same problems as post #4371.

vocus · November 2002

The warranty should cover the turbo anyway. So why would you be "investing" anything???

jjacinto · November 2002

Before I got my 2002 A4 Avant, I owned a 1999 1.8T A4 with ~52,000 miles on it. Not once did I have any engine or Turbo problems. Ok, I'm lying, I did have a problem where my engine would die on me, EVEN ON THE FREEWAY. But my friend and I narrowed the problem down to the aftermarket chip I had purchased. After I got a new one from the manufacturer, all was well. I did have a knocking noise from my suspension at one point but the defective parts were replaced under warranty and the car rode fine after that. I'm sure there are a couple lemons floating around. I'm just thankful I wasn't the recipient of one of them.

Nowadays, I'm enjoying the ride in my 02 Avant. Everything is fine and dandy except for a few interior squeeks and rattles which I'll have the dealer take a look at during my 10K service.

greggsa4 · November 2002

My A4 was a 1997. The warranty expired. For the first time ever we did not purchase an extended warranty because we never made out on them (Pontiac Firebird, Chevy Camaro, Olds Cutlass Supreme. One would expect to need a extended warranty with such autos. We discussed and thought with an Audi it would not be a concern. Horrible mistake. The turbo was only one of several problems to occur after the warrAnty expired. Audi wanted nothing to do with my problems. Even with the aforementioned cars in our past, Audi was by far THE WORST CAR I'VE EVER OWNED. VERY BITTER IN PITTSBURGH!

tmck · November 2002

I didn't buy my A4 for the long haul. I adhere to the adage "You are what you drive". I will tire of the Audi some time in the next year or so and that will be before the original warranty has expired. I'll trade it for something that is new and exciting. In the mean time repairs, if any, will be on someone else's money. Life is too short to drive the same car for 60,000 miles. Kids are grown so I can't think of a better thing to do with my money, except maybe new golf clubs. However your focus, philosophy and circumstances might be different from mine and if that is the case I would expect you to act differently.

sgolden600 · November 2002

I am a loyal Audi A4 Owner. I am on my second lease (had the 98 now have the 2001) and I love this car. I am an NYC resident and park my car in garages generally. The problem that I had with both cars is that the paint on the bumper, even with the slightest tap, peels and chips! I hate looking at the mess back there. It runis the beauty of the car! I was told by the mechanic at the shop that on the newer models are putting some kind of protective strip on the bumper but I have not been able to verify this. Does anybody know anything (or have any suggestions??) This is driving me nuts!!

andys120 · November 2002

a freind who lives in NYC decided to pass up a good deal on a new 9-5 cuz he garages in Manhattan.

He decided he'd mind getting a Taurus scraped up a lot less. Evidentally getting the parking guy to not scrape your bumper is impossible.

bluetrane · November 2002

Gregg has posted on this board a number of times about his unfortunate experience with his A4, and I think most of us would be bitter over such an outlay of money on a fairly new car. It's worth reiterating a point - Audis, like BMWs, MBs and other luxury marques are expensive to repair. There are zillions of Fords, Chevys, Toyotas and the like on the road, and spare parts and shops to repair them in are plentiful. Not so for the rarer makers. The parts are specialized (and probably imported), labor will be at the dealer (expensive regardless) and these feature and electronics laden vehicles simple have more systems and more complex parts to fail. The quattro on your Accord is not likely to fail because it isn't there.

All that being said, I would not own an Audi (or a BMW or MB) for so much as 1 day past the factory warranty without some sort of extended service plan. Repairs on German cars run into four and five!) digits all too easily.

greggsa4 · November 2002

TO TMCK, I APPRECIATE YOUR PERSPECTIVE. I SOLD MY A4 AND BOUGHT A NEW 2002 TOYOTA HIGHLANDER. I'M 35 YEARS OLD AND MARRIED WITH ONE CHILD. I LIKE TO HAVE A NICE RELIABLE CAR HOWEVER WE ALLOCATE MUCH OF OUR DISPOSABLE INCOME IN REAL ESTATE INVESTING. WE ARE HOPING TO RETIRE FROM OUR JOBS EARLY BY DOING SO. HAVING SAID THIS, ACQUIRING NEW CARS OFTEN WOULD NOT ENABLE US TO KEEP OUR FOCUS. WHEN I DO PURCHASE SOMETHING SUCH AS A VEHICLE, I DO SIGNIFICANT RESEARCH. I WAS LED TO BELIEVE THAT THE A4 WAS A GOOD PURCHASE. I WAS VERY DISAPPOINTED. MY BROTHER-IN-LAW WORKS FOR LINCOLN MERCURY AND HE INFORMED ME THAT IN A CASE SUCH AS MINE FORD OFTEN WILL PAY FOR THE PARTS INORDER TO KEEP THE CUSTOMER HAPPY. I HAD NO LUCK WITH AUDI. I SENT THEM PICTURES, MAINTENANCE RECEIPTS AND VEHICLE HISTORY. THEY WANTED NOTHING TO DO WITH ME.

JBaumgart · November 2002

Remember that an Extended Service Plan is insurance, and that they are priced to make a profit. They certainly do pay off for those who have "losses," which is what insurance is designed to do. But cumulatively the offering company must collect more in premiums than they pay out, otherwise they go under and won't be able to honor warranty claims. It's possible that their pricing mechanisms are not sophisticated enough to recognize the higher costs associated with certain, more expensive imports, like the A4, so that owners of higher-volume cars that generate fewer and less expensive repairs end up "subsidizing" A4 and BMW owners. But I doubt this is usually the case, and common sense says that warranty companies try to build in the same profit margin on all makes and models, based on their claim experience - just like regular auto insurers do on accident records.

So while Extended Service Plans can and do pay off for some, and are probably a good idea for those who cannot (or choose not to) take the risk of unexpected repairs, others who can afford to take a calculated risk may want to put their $2,000+ premium to some other use.

P.S. Although you occasionally hear about 5 digit repair bills, I think this risk is very slight. Most engine and transmission problems can be repaired, as opposed to the whole unit having to be replaced, so the vast majority of the time you just end up exchanging your premium dollars with the insurance company's reimbursements. At that point it just becomes a matter of who comes out ahead when the warranty expires or when you sell the car, whichever comes first.

Audi A4 2004 and earlier

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