I bought a 2005 TT new & have only 24 km on it so far.  The original warranty has just run out & I am considering getting an extended warranty. So far the problems have included having a hole in the air intake hose, both front & rear oxygen sensors replaced & repairs to a stuck front seat .  Does it make sense cost wise to get the warranty- the delux 4 year package is $3700.00?

At that price, "no" unless you have the DSG transmission.  There have been several posts on this and other TT boards about very expensive premature failures of the DSG.  I assume you are quoting the Audi extended warranty.  You can get the same coverage from Warranty Direct on line for about a 40% discount.  At around $2000 you will likely break even over the 4 years.

I had a 2001 TTR that had a minor problem (like a sensor failure) about every 9 months under the original warranty and I bought an extended warranty from Warranty Direct for about $2K (include the emissions option) and I broke even.  I now have a 2004 TTR that has had no repairs at all so I did not get the warranty.

When shopping for an extended warranty you want one that is bumper to bumper with few exclusions rather than one that lists the items covered.  Then ask your dealer or mechanic if they will deal with that company.  Warranty Direct works with any ASE certified auto shop which gives you more servicing options.

Also, even though warranties sound like the same coverage they are usually not.  For example, Warranty Direct has a "reasonable and customary clause".  If your stealer tries to bill you for an unreasonable diagnostic fee in addition to the book labor, as mine tried on a few occasions, Warrany Direct will not pay it.  You never have that problem with the Audi warranty because the dealer has to charge what the Audi Warranty dictates.  Warranty Direct did not pay for some fulids replaced during a repair and does not pay sales tax whereas the Audi Warranty does.  Finally, Warranty Direct does not civer the automatic levelers for the headlights because it considers that part of the light assembly and lights are not covered.

Overall, I was pleased with my Warranty Direct experience but my view might have been different if a $700 leveler broke.

I got one with my 04 TT and I took the Deluxe version with AUL insurance that was suppose to cover almost everything.   Well... Almost is a very wide field and when I actually took the car in for

the Aliens not working and my Homelink that never worked.  I was told those are electrical issues that are not covered under this "Deluxe" plan.   The dealer charged 600 to fix the Aliens washers and wanted 1300 for the homelink and I told them NO WAY.  I don't need those things that badly. 

I wash my own lights and use my free garage door opener to open my garage. 

Beware and Reed the Fine Print!!!!