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We haven't had any reports of this problem before. Take it to a dealer or a four-wheel drive specialist to sort out for you.
Clearly it is frustrating, but you are doing the right thing in insisting the car be fixed. I would suggest you meet with the dealer and try and sort it out face to face rather than by phone, e-mail or any other remote means of communication. Don't be fobbed off with a junior member of staff, talk to the dealer manager. If that doesn't result in a resolution, go up the ladder to Holden and again seek to talk to a senior manager. If all else fails enlist the help of a lawyer.
Buying on-line requires the same careful consideration as buying from anywhere else. You certainly don't buy sight unseen; always see the car for yourself. Be wary if the seller suggests meeting in a public place, or at night, or somewhere that might make you suspicious. It's always worth having someone else with you at the time. If you want something a little more exciting you could look at various European brands, Like VW, Renault, Skoda, but in saying that I need to add that the Asian brands like Honda will generally be cheaper to run and maintain than the Europeans.
There's nothing serious to be concerned about with the V8 model, but be aware that it will be expensive to service and repair should you need to do it. Before you hand over your cash talk to a specialist Audi mechanic and seek their advice on the things to look at. Using an independent mechanic will save you heaps on servicing, and they will generally be able to source cheaper parts if needed.
There have been reports of transfer case failure in the CX-9, due to poor lubrication as a result of the oil deteriorating over time. In the USA Mazda increased the warranty to cover the cost of repairs to the transfer case for vehicles produced between 2009 and 2013. The company said it was a result of driving under high load, like towing, or on low-grip surfaces, which caused increased oil temperature. The warranty coverage was increased to nine years. The deal you have been offered isn't a bad one, for $500 you're getting a new transmission, but if you want to take it further you'll need to negotiate with Mazda directly.
It's possible that the chain broke due a loss of oil, but there are a number of possible reasons it could have happened. You won't know until it's pulled down and a mechanic can assess the damage and determine the cause. VW engines, that means Audi, are renowned for using some oil, but to determine if it is excessive you need to do a proper consumption test, which was about to be done when the engine failed. Your best option is to work with the dealer as they investigate the problem and take note of anything you're told by the dealer that might help you later on when you try to claim against Audi for the cost of repairs.
I wouldn't consider any of the European brands, they're too expensive and cost too much to run. That rules out the Up. Asian brands, particularly the better-known and well-respected Japanese brands are a much better bet, which rules in the Echo. The Asian brands tend to be more reliable and cost much less to run. Another to look at in your situation is the Suzuki Alto.
A cargo cover and a cargo net are included in the standard features of the Mazda 6 wagon. If you feel they are not enough I'm sure the dealer could have a hard cargo barrier fitted for you.
An Outback with the four-cylinder petrol engine has a private price guide between $19,500 and $22,000. At 50,000 km yours has done less than the average, so it would most likely come in at the higher end of the range.
I would take the Touareg over the Discovery but the real outback towing champion is the Toyota LandCruiser — which gets a big tick from me — because of its bulletproof reliability and Toyota's service network. The badge is not as prestigious and it will cost more for a fully luxury package but the 200-Series 'Cruiser is still The King.