The manual should advise the difference between the marks on the dipstick - every engine is different and off the top of my head cant remember what the 2.0TFSI is.. Check when cold and all the oil is back in the sump from the same position ie on your flat driveway ideally and note the mileage down between the two readings. 'A little' after 700miles can be normal depending on driving conditions, so don't be alarmed unnecessarily yet
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The engine needs to be up to temperature and ideally to get a good understanding of the situation, you should make sure the car is full of oil, then run it until the oil level message appears. This will give you a more accurate consumption test reading.
Would be good just to clarify your position re servicing or was it a case of you hammering on their door hard to get them to show this goodwill by providing a fix FOC as am staggered they would pay for a 2009 car out of warranty unless you had it serviced with them all its life ?
I bought my 02 plate A4 from Cardiff Audi when it was six months old and had it serviced by the same garage until I sold it. I then bought my 59 plate A4 from Bexley Audi when it was 3 months old, but I take it to Reading Audi to be serviced and maintained.
I took a loan out from a bank to buy my 02 plate, but Audi matched the bank deal on my 59 plate, so I took on their finance package.
This has helped my cause, but at the end of the day it will be up to the garage to make the first good will gesture, which is normally taking off the cost of the parts.
You or the garage will then have to negotiate with Audi UK to get any further reduction. Going mental on the phone to Audi UK will probably help to reduce the cost further.
My wife's convertible I bought privately and it's serviced and maintained by a friend, but I don't think they have factored this in too much.
Unfortunately Reading Audi have always been really good to me. But the only thing that will make me buy another new Audi is either a real rash decision, followed by pain
http://www.audi-sport.net/vb/showthread.php?t=219279 or the experience I have in the next car is worse than this one.
Both my newer Audi's have been money pits, particularly this one!