There is an extended engine/powertrain warranty. What said warranty depends on the status of the vehicle at the time. IIRC, it's 10 years/120,000 total miles or 4 years/48,000 miles from the (not sure if it's from the scandal date like VW or the fix date). Covers the entire long block, heads, turbo & charge system, transmission & drivetrain, and entire exhaust system from the turbo to the tailpipe, and any emissions-related components.
This is just my experience. My 2016 has the 10 year/120k mile warranty that goes back to the in-service date (September 2015 for me, so up to September 2025 or 120,000 miles, whichever happens first). I'll hit 120k way before 10 years, but it's there which is nice. As long as it's not modified/tuned, you should be good. 115k miles is the schedule DPF inspection/replacement, so that might be a nice freebie. The Settlement also entitles you to free Adblue.
While I never had mine before the fix was implemented, from what I've read it's a bit louder and gets worse mpg than pre-fix. I've read a tune can restore pre-fix driving but have not done so on mine.
I don't think there is any "gotchas" for failing components that I've seen. Aside from that, here are a few things I've noticed:
1. It's hard for me to find good quality diesel (higher lubricity cetane). 40 cetane rating is the minimum legally required and some places have significantly higher (55+ cetane rating). I have an additive for winter but it's not the same. Winter diesel sucks. Results are worse fuel economy, what feels like worse power, and it sounds more like a diesel (i.e., louder)
2. Can be a bit sluggish off the line at times. May be fuel-related but sometimes takes some effort to move. The 1-2 gear change be jerky if you lift your foot up right before/after the change.
3. In cold weather I feel it takes a while to warm up. Example: In freezing weather, when I leave my work, I usually get in the car and start driving (keeping revs low). By the time I'm ready to turn onto the highway, my C5 is blasting hot air, coolant gauge straight up at the middle. The C7 might have 2 dashes--3 if I'm lucky. So not nearly as warmed up. Also, immediately driving you can feel it lug a couple minutes until it's gotten a bit warmer.
4. 8-speed transmission always tries to be the highest gear it can even if you don't want it to be, so you may be hunting at certain speeds. In S, it is usually one gear down from D, which helps a lot. I find myself using the paddles a lot, plus the 8-speed shifts quite fast compared to the older 6HP transmissions (no DSG tho).
5. MSRP on Audi Care Select for the TDIs is $1249--$400 higher than an S6 or S7!
6. Love the diesel torque! Wish it had more rev range, but it's ok. And top speed limited to 129 mph :(
Also, C7 in general:
1. No track change buttons on steering wheel. Wtf Audi?!
2. If you try to put on heated steering wheel when it's doing it's initial startup checks, it won't go on until you've gotten through the messages. But if it was previously on, it will automatically be on again.
3. Gauges don't display enough info (like actual boost psi/bar, coolant temp degrees; oil temp can be observed by lap timer).
4. Adaptive Cruise Control minimum distance is too long.
5. VCDS coding for C7.5 is a PITA and you cannot enable the Hidden/Engineering menu b/c Audi mucked with it.
6. Cupholders are a bit close to the arm rest, so drinks with a lid (e.g., Starbucks, McDonalds, etc) may lose the lid.
7. MMI can be finicky at times. Sometimes it shows my entire streamed playlist; sometimes it only says "Audio is streaming from your device" or something and only has the one track. Not consistent with that but any solid state media is good.
8. Love the LED headlights but I feel like they don't illuminate enough down the road. I think Consumer Reports faulted them for that too. I enjoy high beam assist though.
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