Volkswagen Clean Diesel Scandal

[Green Mountains]

Sorry, man. I just saw this post.

I honestly don't know what I'm going to do yet. I got my official packet in the mail over the weekend. I love my car and haven't had any major problems with it. It's a 2010 and has 138k miles on it. Because of its value, I'll probably only qualify for the minimum restitution, which is $5,100. I don't know how to look up my Sept 2015 car value, but I'm assuming it's not over $10,000. So if I did a buy-back, I'm estimating that I'll have around $15k to put towards another car. (What car would/could I buy for $15 grand that is that much better than what I'm currently driving? Idk.) I don't want to go into debt and take on car payments. I also don't feel like spending any money I have saved up. So more than likely, I'll take the cash and keep the car (and save that money for a future car purchase). I'm not worried about resale because I plan on driving it into the ground. I'll probably be at 150k by Jan. If I make it to 300k miles, that'll put me at another 6 years ownership. I put a few hundred bucks into a mutual fund each month as a "car payment." Six years from now, I should be pushing around $50,000 in that fund and will be able to buy my next car and my wife's, debt-free. So that's my thinking at the moment...

I have a 2013 Passat TDI SEL with 40k miles. Purchased it 3 years ago today. I'm getting about 28k for it in the buy back. $6,800 restitution and 21k FMV as of 9/15. I paid 31k for it. To me, its a no brainer, I'll buy a 2016 Passat SEL (gas) for 28k / 29k. $1k per year for to stay in a new car is crazy.

The down side to the fix is the unknown in mileage reduction and power. But in your situation, I'd probably do exactly as you are. One caveat - Unless you can get yourself into a new car which is comparable to your polluter for a couple grand of debt. There is something to be said for no brakes, muffler, battery, suspension, transmission repairs for several years. A new car warranty, especially with how VW will try to win back customers, is very valuable.

 

[BleedBlueGold]

I have a 2013 Passat TDI SEL with 40k miles. Purchased it 3 years ago today. I'm getting about 28k for it in the buy back. $6,800 restitution and 21k FMV as of 9/15. I paid 31k for it. To me, its a no brainer, I'll buy a 2016 Passat SEL (gas) for 28k / 29k. $1k per year for to stay in a new car is crazy.

The down side to the fix is the unknown in mileage reduction and power. But in your situation, I'd probably do exactly as you are. One caveat - Unless you can get yourself into a new car which is comparable to your polluter for a couple grand of debt. There is something to be said for no brakes, muffler, battery, suspension, transmission repairs for several years. A new car warranty, especially with how VW will try to win back customers, is very valuable.

Valid points. I also just saw the Sept 2015 table showing my estimated buy-back value. Because of my mileage though, I'm sure it'll be less. Do you know the mileage calculation they're using for deductions? The table shows a range of $13,675 - $15,350. Does this include the $5,100 restitution payment? If it does, then I'ma bout where I expected. If it doesn't, then I'm looking at around $18,000 for a buy back. That might change things for me.

 

[Green Mountains]

Valid points. I also just saw the Sept 2015 table showing my estimated buy-back value. Because of my mileage though, I'm sure it'll be less. Do you know the mileage calculation they're using for deductions? The table shows a range of $13,675 - $15,350. Does this include the $5,100 restitution payment? If it does, then I'ma bout where I expected. If it doesn't, then I'm looking at around $18,000 for a buy back. That might change things for me.

The buyback number includes the restitution payment. If you log onto the website (vwclaims I think, but you can do a google search), you can get more definitive numbers. I did that this weekend. You will have to have your VIN, but it will start the process. You aren't committing to a course of action. But you are registering.

 

[Green Mountains]

The web site is :

https://claims.vwgoa.com/#/

 

[BleedBlueGold]

The buyback number includes the restitution payment. If you log onto the website (vwclaims I think, but you can do a google search), you can get more definitive numbers. I did that this weekend. You will have to have your VIN, but it will start the process. You aren't committing to a course of action. But you are registering.

The web site is :

https://claims.vwgoa.com/#/

Thanks.

I'll check it out this afternoon. The annual mileage allowance is 12,500 and I blow that out of the water with my daily commute being about 100 miles round trip. So my buy back number will be less than what this chart indicates. I'm not sure there are many new cars on the market $15,000 or less that are worth my time. Yea, the peace of mind with a new car/new warranty/and refreshed maintenance schedule is nice...but is it worth the extra $5,000+ I'd have to pull out of savings to stay debt-free? Idk.

 

[Wild Bill]

Thanks.

I'll check it out this afternoon. The annual mileage allowance is 12,500 and I blow that out of the water with my daily commute being about 100 miles round trip. So my buy back number will be less than what this chart indicates. I'm not sure there are many new cars on the market $15,000 or less that are worth my time. Yea, the peace of mind with a new car/new warranty/and refreshed maintenance schedule is nice...but is it worth the extra $5,000+ I'd have to pull out of savings to stay debt-free? Idk.

I just don't trust that the issue will be fixed without creating more problems and decreasing fuel efficiency.

 

[BleedBlueGold]

I just don't trust that the issue will be fixed without creating more problems and decreasing fuel efficiency.

It will absolutely decrease the gas mileage and performance. I'm not crazy about that.

They do seem to have a policy where if you have problems up to 18 months (18,000 miles whichever comes first) you can participate in the buy back (less the amount already received).

I just can't wrap my head around shelling out thousands of dollars from my savings account to upgrade in vehicle if I don't have to. With GreenMountain, it's pretty obvious what to do. Like he said, it's a no-brainer. For me, if I'm only getting around $10,000 for my car, what used car can I get for $10-12k that's worth it?

 

[BleedBlueGold]

$12,200 total is my buy-back figure after filling out the online form.

 

[Green Mountains]

$12,200 total is my buy-back figure after filling out the online form.

You can get a 2016 Jetta 1.4 S for 16.5k. 4.3k of debt for a brand new car isn't awful by any means. A six year model upgrade and zero mileage. A 5 year loan would be less than $100 per month (I'd pay it off quicker, I hate debt).

 

[BleedBlueGold]

I submitted for the Emissions Mod + $5,100 restitution and here's why:

I've planned to keep this car until it dies from the very beginning. I paid it off quickly, and over the last three and a half years, I've made a regular $400 per month "car payment" to myself into a Vanguard Index Fund. (I'll come back to this.)

I'll have 150,000 miles on my car at year's end. Almost entirely highway. Everywhere I have looked, a well-maintained, highway-driven TDi will run for 400,000 miles give or take. I don't believe there is a consensus. While running numbers, I used 350,000 max. At 25,000 miles per year rate, that's eight more years with my TDi.

Eight more years of making a $400/mo "car payment" into my index funds. I've been maintaining a 6% compounded rate. So using that as an average (which, I know, isn't the best way to do it but it's the easiest), I'll have $85,000 in that account. The beauty is that this was planned for one car...

Here's where it gets fun: Once that account hits $100,000 at 6% rate, every seven years, it'll churn out enough interest for my wife AND myself to trade-in and upgrade vehicles and virtually no cost to us (just taxes and registration).

Holding off on buying a new or even newer used cars for longer than the average person, will allow us more financial freedom. The average monthly car payment in this country is $500 ($1000 in a two-vehicle-debt home). We'll be able to get our next two vehicles for a mere $400 per month. And the next ones after that, shouldn't cost us a dime in terms of "car payments." That's the goal.

So that's my idea anyways. Seems radical. But that's just because it's not the norm. I'm ok with that.