Automotive

Volkswagen CPO Warranty - should I do it?

  • Last Updated:
  • Dec 19th, 2020 11:56 am
[OP]
Newbie
Nov 29, 2013
35 posts
12 upvotes
WINDSOR

Volkswagen CPO Warranty - should I do it?

Just traded in my Jeep Cherokee ($11,500 but about $13,000 after tax savings) for a 2018 VW Atlas Comfortline ($30,200 minus the trade in), so $21,131 total after tax. The Atlas has about 47,000 kms on it and the 4 year,/80,000 km warranty is expiring in July. The dealer is pushing a CPO warranty (VW assurance premium program) for 2 years/40,000 kms for $2800. This seems a bit steep. Couple of questions:

Anyone do the VW CPO before and is it worth it?
Is there any room for haggling?
I was going to pay for the Atlas outright but the dealer said I'd have to finance some at 5.99% in order to get that price due to some kickback from the bank. So I'm paying $11,131 up front and financing $10,000 over 2 years at 5.99% but I can pay it off without penalty after 6 months. The rate was supposed to be 0.9% but the dealer said I'd have to do 5.99% - shady I know (a VW dealer). Anyways, wondering about this CPO - I've never owned a VW.

EDIT: specifically, they offered:
1. CPO 2 years/40,000km for $2898+tax
2. 5 star: 84 months/120,000km for $3128+tax or 108 months/140,000km for $4080+tax
Last edited by zero216 on Dec 15th, 2020 2:28 pm, edited 1 time in total.
21 replies
Jr. Member
Oct 26, 2014
114 posts
72 upvotes
Bradford, ON
I was faced with a similar decision a few years back - bought a 2013 Touareg from Downtown Toronto VW - they insisted on this CPO as well but for about $4k and 3 yrs with $100 deductible. This was back in 2017 and car had 52000 km on it. Long story short I'm glad I did not go for it. Touareg has same powertrain as the 2018 Atlas and other shared components. It's at 98000 km now and absolutely nothing went wrong on it. I would save the cash.
Jr. Member
Feb 8, 2009
132 posts
74 upvotes
Don’t you want to protect you “investment”, ahem, depreciating asset? Sorry, that’s what they like to start off with in the finance office. Everything is negotiable to an extent. Him and haw long enough and they’ll drop it somewhat. Generally I don’t get the extended warranties though check to see what the common issues are with 2018 Atlas models ... and if they seem potentially expensive it could be a worthwhile hedge. I assume this warrant is on top of the existing coverage?
[OP]
Newbie
Nov 29, 2013
35 posts
12 upvotes
WINDSOR
Yeah it starts after the current warranty expires.
Deal Guru
User avatar
Mar 13, 2004
11280 posts
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Toronto, Ontario
I thought that if you buy a used car it comes with 2yrs of CPO warranty? Or has that changed now?

Yes extra warranty is negotiable if they are asking for $2,800 + Tax you can probably get it down to around $2,200 (give or take) if you try hard enough. Maybe say $2,800 is a bit more and was looking at spending $1,600 range, negotiate back and fourth and maybe you an meet around $2,000. As for it you should get warranty, its up to you but its nice to have everything covered just in case.
0_o
<_<
>_>
Sr. Member
Dec 10, 2006
598 posts
157 upvotes
I would consider purchasing the 5 star VW Protection Plus package instead of the CPO.
I paid $2,800 for a 9 year 160,000 extended warranty on my 2017. If I don't use it I get $2,000 in credit to the dealer for service, new car, etc or $1000 cheque.
Yes they are highly negotiable.

YMMV but I would not own a Volkswagen, especially one with a V6 without an extended warranty. I have purchased 3 new VWs, 2015, 2017, 2019, and all of them had work that significantly costs more than $2,800 under factory warranty. Time will tell if my 2017 needs to use the Protection Plus package once factory warranty expires, but I would bet it will.

If anything else, the Protection Plus package is transferable and would increase resale to private party.
Last edited by e909 on Dec 15th, 2020 3:13 pm, edited 1 time in total.
Deal Fanatic
Sep 1, 2004
6359 posts
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It's a no for me for warranty.

I also won't own any German product over 80,000km.
Deal Expert
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Oct 28, 2004
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Toronto
e909 wrote: I would consider purchasing the 5 star VW Protection Plus package instead of the CPO.
I paid $2,800 for a 9 year 160,000 extended warranty on my 2017. If I don't use it I get $2,000 in credit to the dealer for service, new car, etc or $1000 cheque.
Yes they are highly negotiable.

YMMV but I would not own a Volkswagen, especially one with a V6 without an extended warranty. I have purchased 3 new VWs, 2015, 2017, 2019, and all of them had work that significantly costs more than $2,800 under factory warranty. Time will tell if my 2017 needs to use the Protection Plus package once factory warranty expires, but I would bet it will.

If anything else, the Protection Plus package is transferable and would increase resale to private property.
This - if you plan on keeping your VW for more than 4yrs or even selling it down the road - definitely get the longest warranty available.

2011 Volkswagen Tiguan owner here - darn gremlins start popping up at the 6yr - 8yr mark.....get as much warranty as you can. If you don't plan on keeping your VW for more than 3 or 4 yrs - then you probably don't need the extended warranty or 5-star.

If you decide to keep it longer - then go for the 5star. Like previous poster mentioned, it is transferable & worth $$ when reselling....
Deal Expert
Mar 23, 2004
28787 posts
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neluabaclia wrote: I was faced with a similar decision a few years back - bought a 2013 Touareg from Downtown Toronto VW - they insisted on this CPO as well but for about $4k and 3 yrs with $100 deductible. This was back in 2017 and car had 52000 km on it. Long story short I'm glad I did not go for it. Touareg has same powertrain as the 2018 Atlas and other shared components. It's at 98000 km now and absolutely nothing went wrong on it. I would save the cash.
Touareg? It's nothing the same as the Atlas. Atlas is transverse and based on MQB. T'reg is longitudinal, based on the same platform as Cayenne & Q7--much more rugged and robust platform, basically the closest a unibody comes to a truck... Tiguan and Atlas are related but not Touareg. Atlas basically replaced the Touareg because Atlas is cheaper to produce and it's more customised to the American market (most of the rest of the world still gets the T'reg). The newer Cayenne/Q7/T'reg are also based on MLB Evo now as well, so they're not quite the same as they once were either.

That said the Atlas ain't cheap (to buy) anyway, I dunno how I see so many on the road esp. when I mostly see VR6s which are like $55k+ :eek: At least now you can get the 2.0T w/4Motion, but that's only for MY20 or 21, doesn't help OP.

Anyway, honestly I don't think the warranty is worth it. The 2.0T has a 3rd gen EA888 engine in it, which is pretty mature now and has most of the problem areas ironed out. The VR6 well I mean it's now a pretty old design, made modern as possible but not much to go wrong with it. Not saying nothing can go wrong with the vehicle in general but in just 6 years I doubt you're going to see a $2800 repair bill for anything, provided the previous owner(s) took good care of it and that OP takes good care of it.

As said the warranty amount is probably negotiable but I would just save the money, put it in TFSA or whatever, and then if you actually ever need it then cash it out to pay for the repairs.
Banned
Jul 10, 2020
177 posts
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ES_Revenge wrote: Touareg? It's nothing the same as the Atlas. Atlas is transverse and based on MQB. T'reg is longitudinal, based on the same platform as Cayenne & Q7--much more rugged and robust platform, basically the closest a unibody comes to a truck... Tiguan and Atlas are related but not Touareg. Atlas basically replaced the Touareg because Atlas is cheaper to produce and it's more customised to the American market (most of the rest of the world still gets the T'reg). The newer Cayenne/Q7/T'reg are also based on MLB Evo now as well, so they're not quite the same as they once were either.

That said the Atlas ain't cheap (to buy) anyway, I dunno how I see so many on the road esp. when I mostly see VR6s which are like $55k+ :eek: At least now you can get the 2.0T w/4Motion, but that's only for MY20 or 21, doesn't help OP.

Anyway, honestly I don't think the warranty is worth it. The 2.0T has a 3rd gen EA888 engine in it, which is pretty mature now and has most of the problem areas ironed out. The VR6 well I mean it's now a pretty old design, made modern as possible but not much to go wrong with it. Not saying nothing can go wrong with the vehicle in general but in just 6 years I doubt you're going to see a $2800 repair bill for anything, provided the previous owner(s) took good care of it and that OP takes good care of it.

As said the warranty amount is probably negotiable but I would just save the money, put it in TFSA or whatever, and then if you actually ever need it then cash it out to pay for the repairs.
yeah the EA888 is pretty bullet proof.
drive that turbo hot and wild every few weeks to clean it out.
Banned
Jul 10, 2020
177 posts
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sickcars wrote: I thought that if you buy a used car it comes with 2yrs of CPO warranty? Or has that changed now?

Yes extra warranty is negotiable if they are asking for $2,800 + Tax you can probably get it down to around $2,200 (give or take) if you try hard enough. Maybe say $2,800 is a bit more and was looking at spending $1,600 range, negotiate back and fourth and maybe you an meet around $2,000. As for it you should get warranty, its up to you but its nice to have everything covered just in case.
That's what I thought too. I'm really confused!
[OP]
Newbie
Nov 29, 2013
35 posts
12 upvotes
WINDSOR
cfpuser wrote: That's what I thought too. I'm really confused!
Nope, it doesn't.
Jr. Member
Oct 19, 2008
164 posts
116 upvotes
Halifax, Nova Scotia
I don't know about that warranty, but I wouldn't own a VW without some warranty. (My 2015 TDI has powertrain and emissions to 260,000km or it would be gone already.)
Jr. Member
Oct 26, 2014
114 posts
72 upvotes
Bradford, ON
ES_Revenge wrote: Touareg? It's nothing the same as the Atlas. Atlas is transverse and based on MQB. T'reg is longitudinal, based on the same platform as Cayenne & Q7--much more rugged and robust platform, basically the closest a unibody comes to a truck... Tiguan and Atlas are related but not Touareg. Atlas basically replaced the Touareg because Atlas is cheaper to produce and it's more customised to the American market (most of the rest of the world still gets the T'reg). The newer Cayenne/Q7/T'reg are also based on MLB Evo now as well, so they're not quite the same as they once were either.

That said the Atlas ain't cheap (to buy) anyway, I dunno how I see so many on the road esp. when I mostly see VR6s which are like $55k+ :eek: At least now you can get the 2.0T w/4Motion, but that's only for MY20 or 21, doesn't help OP.

Anyway, honestly I don't think the warranty is worth it. The 2.0T has a 3rd gen EA888 engine in it, which is pretty mature now and has most of the problem areas ironed out. The VR6 well I mean it's now a pretty old design, made modern as possible but not much to go wrong with it. Not saying nothing can go wrong with the vehicle in general but in just 6 years I doubt you're going to see a $2800 repair bill for anything, provided the previous owner(s) took good care of it and that OP takes good care of it.

As said the warranty amount is probably negotiable but I would just save the money, put it in TFSA or whatever, and then if you actually ever need it then cash it out to pay for the repairs.
Yes I did not go into much details but if we are talking about the transmission (8sp Aisin) and the VR6 3.6 powerplant on the Atlas, they were pretty much carried over to Atlas. Honestly don't see anything that could go wrong this early, except maybe some electronic gremlins related to the newer infotainment and some of the driving aids that were not all present in my Touareg. I drove the Atlas some time ago, really liked it but does feel a little different and does not have that same real german feel to it. Too bad they stopped bringing Touareg here, why can't we have both the Atlas and Touareg as some markets like Russia :)
Deal Expert
Mar 23, 2004
28787 posts
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neluabaclia wrote: Too bad they stopped bringing Touareg here, why can't we have both the Atlas and Touareg as some markets like Russia :)
While the T'reg is the better and more capable* vehicle, the sales in NA were never great with it and it didn't align much with what "the American market wants". Pretty sure Atlas OTOH has been an instant big success both in US and here. They've even expanded it with the Cross Sport with the pointless-except-styling sloped back ala X6 or Q8.

*More capable in terms of chassis robustness, off-road ability, and ruggedness; Atlas is more capable for family purposes.

2016 US T'Reg sales were 4,200 units, with the all-time high in US being 2012 with 10,500 sold.
2019 US Atlas sales were over 81,000.

It's kind of funny given the Cayenne is by most accounts the vehicle that "saved" Porsche, but in VW form it wasn't a big success. Of course then again Porsche has way smaller sales numbers/expectations in general.

TBH Atlases are everywhere, I see them all the time as mentioned, so must be pretty successful here as well. For some reason most of the drivers think they are race car too :rolleyes: even though they really aren't fast at all lol--VR6 is over 4700lb and takes about 8s 0-60; the 2.0T FWD is actually a bit quicker while I haven't seen any tests of the new 2.0T 4Motion...
Jr. Member
Oct 26, 2014
114 posts
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Bradford, ON
ES_Revenge wrote: It's kind of funny given the Cayenne is by most accounts the vehicle that "saved" Porsche, but in VW form it wasn't a big success. Of course then again Porsche has way smaller sales numbers/expectations in general.
I can only speculate why it was such a let down in sales in North America, but I know in Europe it did much better. Speculations range from Euro spec having diff locks, air and the almighty V8 TDI (in the 7P). And the local market preference as you mentioned, where people don't get why an everyday 'people's car' can be that expensive.
Anyway I might be biased as all I drive is derived from VAG, but Atlas seems like a solid car and I reiterate - should not need an expensive CPO warranty associated with it.
Sr. Member
Dec 10, 2006
598 posts
157 upvotes
ES_Revenge wrote: Touareg? It's nothing the same as the Atlas. Atlas is transverse and based on MQB. T'reg is longitudinal, based on the same platform as Cayenne & Q7--much more rugged and robust platform, basically the closest a unibody comes to a truck... Tiguan and Atlas are related but not Touareg. Atlas basically replaced the Touareg because Atlas is cheaper to produce and it's more customised to the American market (most of the rest of the world still gets the T'reg). The newer Cayenne/Q7/T'reg are also based on MLB Evo now as well, so they're not quite the same as they once were either.

That said the Atlas ain't cheap (to buy) anyway, I dunno how I see so many on the road esp. when I mostly see VR6s which are like $55k+ :eek: At least now you can get the 2.0T w/4Motion, but that's only for MY20 or 21, doesn't help OP.

Anyway, honestly I don't think the warranty is worth it. The 2.0T has a 3rd gen EA888 engine in it, which is pretty mature now and has most of the problem areas ironed out. The VR6 well I mean it's now a pretty old design, made modern as possible but not much to go wrong with it. Not saying nothing can go wrong with the vehicle in general but in just 6 years I doubt you're going to see a $2800 repair bill for anything, provided the previous owner(s) took good care of it and that OP takes good care of it.

As said the warranty amount is probably negotiable but I would just save the money, put it in TFSA or whatever, and then if you actually ever need it then cash it out to pay for the repairs.
Here are issues I've had with three modern VWs with reliable platforms. Several of these repairs would be >$2800

17 GSW 1.8T - Turbo Replacement, F5 Module Replacement, Thermostat Housing, Wheel Bearing (x2), Odds & Ends Trim (All <50K KM)
15 2.0 TDI - Urea Injector Replacement, DSG Mechatronic unit (All <40K KM)
19 Jetta 1.4T - Rear Main Seal failure, Transmission Cooler Seal. Both of these separate repairs required the transmission to be dropped. (<15K KM)

I only currently own the first vehicle on this list, but I think if you're going to own a VW past the warranty period the extended warranties can add value.

Maybe these cars would be perfectly reliable after the factory warranty but I kind of doubt it.
Deal Expert
Mar 23, 2004
28787 posts
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e909 wrote: Here are issues I've had with three modern VWs with reliable platforms. Several of these repairs would be >$2800

17 GSW 1.8T - Turbo Replacement, F5 Module Replacement, Thermostat Housing, Wheel Bearing (x2), Odds & Ends Trim (All <50K KM)
Turbo failure is not that common but yes it would be expensive if it occurs. Good news with a turbo failure is you can just replace with IS38 afterwards heehee :) Wheel bearings are typically not covered under warranty as they are wear items; unless it's a problem area they've specifically addressed in a TSB as warranty or something, it would not be covered (same as brake pads, tyres, wipers, etc.). Trim in VWs I thought was covered only by a shorter warranty, but they might have changed that.
e909 wrote: 15 2.0 TDI - Urea Injector Replacement, DSG Mechatronic unit (All <40K KM)
This [Atlas] is not a TDI, no urea injection to fail; also not a DSG.
e909 wrote: 19 Jetta 1.4T - Rear Main Seal failure, Transmission Cooler Seal. Both of these separate repairs required the transmission to be dropped. (<15K KM)
Of course the trans would have to be pulled to to the rear main seal, but surprising it has to be for just a cooler seal--that's ashame. Rear main seal was a problem but I thought they had largely remedied it on the later engines with a revised PCV and front seal. Of course the 1.4T is not the same design/family as the 2.0T so perhaps a problem more related to that engine.

These seem like unfortunate events to be sure, but I don't think as many, esp. the major ones are all that common. Extended warranties may also not cover everything the original warranty did, there could also be deductibles involved, and at nearly $3000 you either have to have a major issue or several significant ones to top that dollar amount in clams...in just two years. It's certainly possible, but how probable is it? Say you even have one repair that's $1200, that's still not even half the total amount paid for the warranty.

e909 wrote: I only currently own the first vehicle on this list, but I think if you're going to own a VW past the warranty period the extended warranties can add value.
You raise some good points but it really comes down to price, perceived value, and what price you want to put on that "peace of mind" the warranty offers. It's a balance of value and gamble.

If the warranty were more like $1k or so it'd be a lot better a deal but at nearly 3x as much it's a lot more a gamble. Which is really what extended warranties are--a gamble. There are at least some which will pay out a percentage of the original price at the end, if you never had to use it but don't think that applies in the case of a CPO purchase. If the OP can get the price down it may be provide some peace of mind without costing a ludicrous amount for two years; but, in the end, it's all up to OP anyway.
Sr. Member
Jan 28, 2017
786 posts
821 upvotes
Extended warranties just buy you peace of mind. You may or may not make a claim that may or may not be honoured by VW during that extended coverage.

Also a first time VW owner too (mk7 GTI), I think you are better off finding a trusted VW mechanic in your area. And make sure to do your preventative maintenance on time, preferably earlier than the manual like oil changes, DSG (if you have it), haldex fluids, etc. Tbh, that goes with any car make, not just VAG.

Unless you are leasing, idk why people would just blindly follow the manual and do oil changes on their euro cars every 20k, no wonder why those cars are fried after a 4 year lease!

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