I'm a "proud" owner of a 2014 Passat TDI (purchased May 2014). Here's the math breakdown for me personally:
- $26,000 for the car, before TTL
- First year, the car will depreciate 20%, so its September 2015 value would be $20,800.
- VW will give me $5,100 (maybe more) plus that Sept 2015 value = $25,900
- I don't have to make a decision until December 2018
Result: I get a car for 4.5 years for which I've paid $100
* Simplified math, doesn't factor time-value or the 0.9% interest rate.
I have a 2015 purchased in May 2015, 72 month loan at 1.9% interest so the math doesn't work out quite the same, if we both take the buyback + $5,100 on the same date I would probably still have paid more for mine than you for yours.
20% depreciation seems low, is there a source for that number? KBB value for my vehicle, private party sale, "very good" condition is $16k. Even "excellent" condition (3% of cars) only adds $500.
Granted I bought this because I was commuting long distance last year and it has 39k miles on it, but I put about 5 miles a day on it now so that will even out over time.
You shouldn't compare your KBB right now, after the scandal, to its September 2015 KBB value, before the scandal was started. The values took a huge hit. I don't know what the Sept 2015 value was, so I used 20% since that's what Google told me when I searched "how much does a car depreciate in the first year".
I think your math is pretty similar. A virtually free car for 1 year less ownership time.
I got a 2015 TDI Jetta in May of 2015. It gets wonderful mileage when I'm on the highway. 51-52mpg on long hauls on the interstate with cruise control set.
I'm honestly torn between taking the total amount of money or the $5,100 and letting them fix the car. I just hope it doesn't kill the fuel economy too much.
...and what downsides are there to holding on to the car if they have a fix?
2015 Passat TDI owner checking in: I would love a Porsche Cayman but can't justify the price. I've been looking at the S5 or TTS though. I don't have any particular affinity for the VW group but Audi has some nice looking cars.
Ha, it wasn't brand new. It was a 2007 that I sold in 2014. Repairs were EXPENSIVE! ($190/hr for labor at the dealer, $130 at the place I went to). Every part was 4x what it would be in a Camry. KBB was about $26k when I sold it.
- $26,000 for the car, before TTL - First year, the car will depreciate 20%, so its September 2015 value would be $20,800. - VW will give me $5,100 (maybe more) plus that Sept 2015 value = $25,900 - I don't have to make a decision until December 2018
Result: I get a car for 4.5 years for which I've paid $100
* Simplified math, doesn't factor time-value or the 0.9% interest rate.