Bought 2002 1.8L Turbo 4cyl., front wheel/drive used last October at approx. 18,000 miles from CarSense. When car hit 35,000 after a little over 1 year of ownership, we encountered severe engine problems. Trouble starting and after warming up, engine warning lights would come on and stay on. We took it to our local VW dealer and found out about an apparent “”oil sludge”" recall issue we were not made aware of due to second hand ownership.
The problem was that the 1.8L turbo engine runs so hot, it breaks down the motor oil faster than normal, leaving clumps of oil residue in the engine, clogging the filters, wearing out the pump and seals, etc. VW told us that these engines require higher maintenence and require the use of synthetic oil only, and MUST be changed at least every 5,000 miles or 6 months, whichever is first. VW apparently issued a notice of the issue to owners and offered an extended warranty to cover associated costs.
Anyway, in order to be covered under the extended warranty, they want you to provide receipts showing oil changes every 5,000 miles. Luckily, we were able to provide these receipts, however, since we were not the original owners, and CarSense could not provide us with the car’s history from the previous owner, VW would only pay 2/3 of the cost of the repairs (better than nothing).
The remedy for the sludge problem was to flush the engine, change the oil, replace the filters, seals and fuel pump - total of $1,600 altogether; $500 of which we are responsible for.
Moral of the story: change your oil often and keep your receipts! After some research, we found that this is a widespread issue with other owners and has in some cases fallen under state Lemon Laws. Our local dealer has told us they have actually replaced engines entirely in some cases, costing $8,000!
Personally, I feel this is a case of VW recognizing a problem, but not admiting any wrong-doing. The problem was apparently there regardless whether the previous owner changed the oil or not, and since we had anyway, why should we have to pay anything? This was the first and LAST VW I will ever own. I’ve owned many vehicles, and never had issues like this before. After speaking with several garage owners, they have all told me similar stories and in their opinion, VW quality has tanked since 2000. I don’t know what happened over there, since I’ve seen 20 year old VW’s running quite well all over, but something is definitely up.