Frequently Asked Questions. June v4

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1 Frequently Asked Questions June v4

2 Frequently Asked Questions June Program Parameters and Pricing Model Year 2017 Program Parameters for VW Care Model Year 2015 Program Parameters for VW Care Program Parameters for VW Care Plus... 5 Eligibility Do Model Year 2017 vehicles still have Carefree Maintenance? When can customers purchase VW Care (Plus) plans? When do VW Care (Plus) plans expire? Is there a grace period for customers who return for their service after contract expiration? Are electric vehicles eligible for VW Care (Plus)? Are hybrid vehicles eligible for VW Care (Plus)? Can my customers who own a Model Year 2014 vehicle purchase VW Care Plus? Can a customer purchase only a 40K service?... 8 Pricing Will pricing be prorated if a VW Care (Plus) plan was purchased after a service covered under the plan has already been completed? Can customers finance the cost of VW Care (Plus) plans? Can I give away a VW Care (Plus) plan free of charge to the customer? How will I be billed for VW Care (Plus) plans sold?... 9 Covered What is included in the VW Care (Plus) plan coverage? Does a VW Care Plus plan include the coverage of a VW Care plan? Is every dealer required to service vehicles that have a VW Care (Plus) plan? Is VW Care valid in other countries? When does a VW Care (Plus) Plan become active after I have sold it?...10 Refunds and Transfers...10 Frequently Asked Questions (June 2016) Page 2 of 15

3 2.18. What should I do if I created a VW Care (Plus) plan on the wrong VIN or with incorrect customer information? What happens if I discover that a VW Care (Plus) plan was added in error, but claims have already been submitted against it? Are VW Care (Plus) plans refundable or cancellable? How will refunds be paid out? Is a VW Care (Plus) plan transferable to a new VIN? Can customers receive a refund for the unused portion of the plan if they terminate their lease agreement early or if the lease term is less than the coverage period?...12 Volkswagen Care Management System What should I do if I experience technical difficulties with the VW Care Management System?...13 Claims How do I get reimbursed for maintenance performed under VW Care? Why is the egolf reimbursed at 100% of my warranty labor rate? How will VINs look in ElsaPro when a VW Care (Plus) plan has been sold?...14 Contact How do I order VW Care marketing materials? Who should I contact with questions about VW Care? Who should customers contact with questions about VW Care?...15 Frequently Asked Questions (June 2016) Page 3 of 15

4 1. Program Parameters and Pricing 1.1. Model Year 2017 Program Parameters for VW Care VW Care plans cover the manufacturer s scheduled maintenance at the following intervals for model year 2016 and newer vehicles: Scheduled Maintenance Interval Months from original vehicle in-service date 10,000-mile service 12 20,000-mile service 24 30,000-miles service 36 VWoA recommends dealers sell VW Care plans at MSRP and explain savings to the customer: Gas (incl. Hybrid) Diesel Touareg (Gas, Hybrid, Diesel) egolf MSRP MY16 $389 $419 $499 $509 MSRP MY17 $425 N/A $522 $ Model Year 2015 Program Parameters for VW Care VW Care plans cover the manufacturer s scheduled maintenance at the following intervals for model year 2015: Scheduled Maintenance Interval Months from original vehicle in-service date 20,000-mile service 24 30,000-miles service 36 VWoA recommends dealers sell VW Care plans at MSRP and explain savings to the customer: Gas (incl. Hybrid) Diesel Touareg (Gas, Hybrid, Diesel) egolf MSRP MY15 $149 $169 $229 $456 Frequently Asked Questions (June 2016) Page 4 of 15

5 1.3. Program Parameters for VW Care Plus VW Care Plus plans cover the manufacturer s scheduled maintenance at the following intervals for all model year 2014 and newer vehicles (except Routans): Scheduled Maintenance Interval Months from original vehicle in-service date 40,000-mile service 48 50,000-miles service 60 VWoA recommends dealers sell VW Care Plus plans at MSRP and explain savings to customers: Gas (incl. Hybrid) Diesel Touareg (Gas, Hybrid, Diesel) egolf MSRP MY14/15 $569 $719 $549 $501 MSRP MY16 $439 $689 $519 $529 MSRP MY17 $482 N/A $439 $504 Frequently Asked Questions (June 2016) Page 5 of 15

6 Frequently Asked Questions Eligibility 2.1. Do Model Year 2017 vehicles still have Carefree Maintenance? No, Carefree Maintenance is no longer available on Model Year 2016 vehicles or newer, that is why the VW Care plan for Model Year 2016 and newer vehicles now include the 10,000 mile scheduled maintenance. All Model Year 2015 vehicles do come with 1 year/10,000 miles nocharge scheduled maintenance When can customers purchase VW Care (Plus) plans? Ideally, a customer would purchase one or both plans during the purchase of a vehicle. However, the plans may still be purchased at the time of the 10,000-mile service or at any time before the vehicle reaches the mileage or age (whichever occurs first) at which the first service of the respective plan is due. Plan Max. mileage to be eligible for purchase* VW Care (MY 2016 and newer) 12,000 miles 12 months VW Care (MY 2015) 22,000 miles 24 months VW Care Plus 45,000 miles 48 months *whichever occurs first Max. vehicle age to be eligible for purchase* (from in-service date) 2.3. When do VW Care (Plus) plans expire? VWoA highly recommends that services be performed at the scheduled time or mileage of the manufacturer scheduled maintenance interval as stated in the USA Warranty & Maintenance booklet. Within the VW Care customer terms & conditions, contracts will expire after the following time or mileage (whichever occurs first) has been exceeded: Plan Max. mileage before contract expiration Max. vehicle age from in-service date before contract expiration VW Care 36,000 miles 39 months VW Care Plus 56,000 miles 63 months Frequently Asked Questions (June 2016) Page 6 of 15

7 2.4. Is there a grace period for customers who return for their service after contract expiration? To ensure satisfaction of customers who return for their service outside of the parameters specified in their VW Care contract, dealers may claim services as part of the VW Care program up to the limits specified below. Maintenance Interval Maintenance Interval Description Maximum Mileage Maximum Months 10,000 miles Service at 10,000 miles or one year after last service, whichever occurs first. 17, ,000 miles Service at 20,000 miles or one year after last service, whichever occurs first. 27, ,000 miles Service at 30,000 miles or one year after last service, whichever occurs first. 37, ,000 miles Service at 40,000 miles or one year after last service, whichever occurs first. 47, ,000 miles Service at 50,000 miles or one year after last service, whichever occurs first. 57, Beyond these stipulated guidelines, dealers may contact the Warranty Helpline at for further assistance in processing claims Are electric vehicles eligible for VW Care (Plus)? Starting in November 2014, customers may purchase VW Care (Plus) for the egolf Are hybrid vehicles eligible for VW Care (Plus)? Yes. Hybrid vehicles fall under the Gas price category. Touareg Hybrid belongs under the Touareg price category Can my customers who own a Model Year 2014 vehicle purchase VW Care Plus? Yes, customers with Model Year 2014 vehicle can purchase VW Care Plus if the vehicle falls within the parameters. In additional all new, used and CPO Model Year 2014 vehicles are eligible for VW Care Plus as long as the vehicle has not reached the mileage or age (whichever occurs first) at which the first service of the plan occurs. Frequently Asked Questions (June 2016) Page 7 of 15

8 2.8. Can a customer purchase only a 40K service? No, currently the only plans available are VW Care and VW Care Plus which include the following services. Volkswagen Care scheduled maintenance plan covers MY 2016 and newer: Scheduled Maintenance Months from original vehicle in-service date* 10,000-mile service 12 20,000-mile service 24 30,000-mile service 36 Volkswagen Care scheduled maintenance plan covers MY 2015: Scheduled Maintenance Months from original vehicle in-service date* 20,000-mile service 24 30,000-mile service 36 Volkswagen Care Plus scheduled maintenance plan covers: Months from original vehicle in-service date until Scheduled Maintenance prepaid coverage expires 40,000-mile service 48 50,000-mile service 60 Pricing 2.9. Will pricing be prorated if a VW Care (Plus) plan was purchased after a service covered under the plan has already been completed? No. VW Care (Plus) plan pricing will never be prorated. Parameters for purchase eligibility were set so that customers are only able to purchase a plan, if the scheduled services covered under the plan have not been completed Can customers finance the cost of VW Care (Plus) plans? It may be possible to finance the cost of VW Care (Plus) as part of the vehicle loan or lease, provided that the customer makes that decision, at the time the customer purchases or leases a vehicle. The customer may also consider using a credit card to pay for a VW Care (Plus) plan Can I give away a VW Care (Plus) plan free of charge to the customer? Giving away a VW Care (Plus) plan at no charge to the customer may be a great sales closing tool for your dealership, which you are free to do. However, the dealer will always be charged the applicable dealer price for the plan. Frequently Asked Questions (June 2016) Page 8 of 15

9 2.12. How will I be billed for VW Care (Plus) plans sold? The dealer will be billed with the appropriate dealer price for the plan sold. At the time of sale, a payment (ideally, the MSRP) will be collected from the customer by the dealer. The difference between the customer price (or MSRP) and the dealer price is considered the dealer s margin. The dealer s cost of plan sold will appear on the Warranty Audit Trail with a claim ID ending in ZC or ZA along with the Claim Type of SP. Covered What is included in the VW Care (Plus) plan coverage? VW Care (Plus) plans cover the manufacturer recommended scheduled maintenance, according to the vehicle s USA Warranty & Maintenance Booklet, at the following intervals: VW Care plan: 10,000-, 20,000- and 30,000-mile services (MY2016 and newer) VW Care plan: 20,000- and 30,000-mile services (MY2015) VW Care Plus plan: 40,000- and 50,000-mile services (MY2014 and newer) VWoA will not pay for parts or services that are not identified in the maintenance section of the USA Warranty & Maintenance manual under the scheduled maintenance interval for which the work is being performed Does a VW Care Plus plan include the coverage of a VW Care plan? No. VW Care and VW Care Plus are two different plans that must be purchased separately. The VW Care Plus plans only covers manufacturer recommended scheduled maintenance for the following intervals: Scheduled Maintenance Interval Months from original vehicle in-service date 40,000-mile service 48 50,000-miles service Is every dealer required to service vehicles that have a VW Care (Plus) plan? Frequently Asked Questions (June 2016) Page 9 of 15

10 The VW Care program is an optional program for dealers. We encourage dealers to sign up for at least one of the two following enrollment options to ensure the best possible experience for our VW Care customers: Both sell VW Care plans and perform scheduled maintenance on vehicles covered by VW Care plans; or Perform scheduled maintenance on vehicles covered by VW Care plans only (with no right to sell VW Care plans) Is VW Care valid in other countries? VW Care (Plus) plans are valid only in the U.S When does a VW Care (Plus) Plan become active after I have sold it? Plans attached to new vehicle sales are automatically added to the VIN and become active once the vehicle sale is reported and an in-service date is generated. Plans sold for vehicles with an existing in-service date will automatically be added to the VIN and become active after you click on the Submit button. It will take approximately hours for Elsa and SAGA to update. Refunds and Transfers What should I do if I created a VW Care (Plus) plan on the wrong VIN or with incorrect customer information? Do not submit a refund request for plans entered in error. Please contact the VW Care Helpdesk at and we can remove the plan that was added in error. Once done a new contract can be submitted on the vehicle What happens if I discover that a VW Care (Plus) plan was added in error, but claims have already been submitted against it? Do not submit a refund request for plans entered in error. Please contact the VW Care Helpdesk at and we can remove a plan that was added in error. The dealer will be credited the dealer price and debited for any reimbursement claims already paid for this plan. Frequently Asked Questions (June 2016) Page 10 of 15

11 2.20. Are VW Care (Plus) plans refundable or cancellable? VW Care (Plus) plans are not cancellable or refundable in most states, unless a vehicle was totaled. The following refund rules apply for totaled vehicles: Volkswagen Care Volkswagen Care Plus Interval Cancellation Fee Refund Amount* Interval Cancellation Fee* Refund Amount* No Services Used $ %, less cancellation fee No Services Used $ %, less cancellation fee 10k used $ %, less cancellation fee 20k used $ %, less cancellation fee 40k used $ %, less cancellation fee 30k used May not cancel Volkswagen Care contract 50k used May not cancel Volkswagen Care Plus Contract *of customer price paid By California state law, the customer may request a refund. The following rules apply: If Cancelled within 60 Days of Receiving Volkswagen Care or Volkswagen Care Plus Contract Cancellation Fee Maintenance Interval Used or Expired Refund Amount* Within 60 After 60 days days No Services Used No fee $ % 10,000-mile Interval used No fee $ % 20,000-mile Interval used No fee $ % 30,000-mile Interval used May not cancel Volkswagen Care contract 40,000-mile Interval used No fee $ % 50,000-mile Interval used May not cancel Volkswagen Care Plus contract *of customer price paid Any refund request for a totaled vehicle must be accompanied by proof of totaled vehicle loss. Dealers may submit refund requests on behalf of the customer through the Volkswagen Care Management System ( VCMS ). Alternatively, the customer may submit a refund request directly to: Volkswagen, Volkswagen Care Refunds, 3800 W. Hamlin Road, Auburn Hills, MI Frequently Asked Questions (June 2016) Page 11 of 15

12 2.21. How will refunds be paid out? If a refund request was submitted and VWoA determines that the VW Care (Plus) contract is eligible for cancelation and refund, VWoA will refund the customer or lienholder directly by issuing a check. If no services have been claimed at the time the request was received, VWoA will debit or credit the dealer account with the difference between the final customer price and the dealer price Is a VW Care (Plus) plan transferable to a new VIN? No. If a customer trades in a vehicle with VW Care (Plus) and purchases another vehicle, the existing coverage remains with the original vehicle and the customer will have to purchase a new plan. However, the subsequent owner of the original vehicle will be covered under VW Care for any remaining intervals. Possible Exceptions to the no-transfer clause: If a customer totals a Volkswagen with VW Care (Plus), has not used any services, and purchases a new Volkswagen, we may transfer the plan for the customer at our discretion. We may also approve a transfer in certain customer satisfaction-related cases. Please contact to submit a request. Please provide any relevant documentation, such as proof of loss. Generally, no administration fee is associated with this process Can customers receive a refund for the unused portion of the plan if they terminate their lease agreement early or if the lease term is less than the coverage period? No refunds will not be given if the lease is terminated early or if the lease term is less than the coverage period (Exception: By California state law, the customer may request a refund.) Frequently Asked Questions (June 2016) Page 12 of 15

13 Volkswagen Care Management System What should I do if I experience technical difficulties with the VW Care Management System? If the system is unavailable or you are experiencing errors when you are ready to sell a VW Care contract, you may capture the customer information and create the plan once the system has recovered. The customer will then receive an electronic copy of the contract via a systemautomated . Always ensure to review the contract terms and conditions together with your customer and confirm his or her acceptance. If you have questions about system functionalities, please refer to the system handbook or send an with your question to Claims How do I get reimbursed for maintenance performed under VW Care? You will be reimbursed for all VW Care Claims through SAGA. Labor incurred in connection with maintenance covered by a Volkswagen Care plan will be reimbursed at the Dealer s approved hourly Volkswagen Care Labor Rate, except for maintenance performed on the egolf, which will be reimbursed at 100% of the Dealer s approved hourly warranty labor rate. Repair time will be based on the Suggested Repair Time designated in VWoA s ELSA for the services that are to be performed for the maintenance interval. Oil, fluids, and parts used for the maintenance work will be reimbursed at the MSRP listed for the oil, fluid and parts in the price list in effect at the time the maintenance interval is performed. Payment of claims will appear on the dealer s weekly warranty credit memo Why is the egolf reimbursed at 100% of my warranty labor rate? Maintenance on egolf vehicles must to be performed by a Volkswagen certified high voltage technician, who will be typically a senior technician in your dealership. Therefore, egolf vehicles are not eligible for service to be performed in Service Xpress. In view of that, VWoA is reimbursing egolf maintenance at the higher approved warranty labor rate. Frequently Asked Questions (June 2016) Page 13 of 15

14 2.27. How will VINs look in ElsaPro when a VW Care (Plus) plan has been sold? The VW Care (Plus) plan will show up in the Vehicle Date Screen under Enhanced Coverage, Not only will it state ACTIVE but you will also see the end date as well as the end mileage. In addition the dealer can also see coverage in SAGA. Example of VW Care: Example of VW Care Plus Frequently Asked Questions (June 2016) Page 14 of 15

15 Example of SAGA Contact How do I order VW Care marketing materials? When you enroll your dealership in the VW Care program, you will receive a marketing kit based on your enrollment level. If you need marketing materials, they can be ordered through the Volkswagen Brand Store Who should I contact with questions about VW Care? If the answer to your question cannot be found in these FAQs, you may send an to PLEASE DO NOT SHARE THIS ADDRESS WITH CUSTOMERS. The VW Care address is only for dealer and corporate use Who should customers contact with questions about VW Care? If you are not able to respond to a customer question to his or her satisfaction, he or she should contact Volkswagen Owner s CARE at between 8.00 am and 6.00 pm local time to speak to one of our trained customer advocates. Frequently Asked Questions (June 2016) Page 15 of 15

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