VW TDI EPA Recall (2.0L and 3.0L)

Sharkwaldo · Feb 2, 2017

tms0425 said:
Well there is another case for some of us Gen2, lessees get a whopping $2k if you have it repaired. I intended to buy mine out of the lease next month, but nothing additional in that case either.

I think the idea there is that you got to lease with the residual already set at lease origination, so you can walk away without taking a hit in value. So you are just getting paid for the FTC false advertising portion of things. Of course that stinks if you wanted to buy it, but if you wanted to buy it in the first place a lease is kind of a weird choice. At least you get a way out without taking a financial hit, and some cash besides.

MTreg · Feb 2, 2017

Isn't leasing a car analogous to leasing a house? If you had an option to buy a house you had leased and found elevated radon levels during an inspection would you expect to receive any compensation?

BenTDI · Feb 2, 2017

MTreg said:
Isn't leasing a car analogous to leasing a house? If you had an option to buy a house you had leased and found elevated radon levels during an inspection would you expect to receive any compensation?

I agree, leasing is just an expensive rental. The leasing company doesn't care if you intend to buy at the end of the rental and neither does VW in the agreement other than what they are offering to lessees/renters.

jwm_mwj · Feb 2, 2017

Well, the restitution for Gen 2 Lessees is pretty weak.... Is there any risk selling it now or is the restitution locked in? Tired of this waiting and want to dump it while I'm under 50k.

tregger · Feb 2, 2017

BenTDI said:
I agree, leasing is just an expensive rental. The leasing company doesn't care if you intend to buy at the end of the rental and neither does VW in the agreement other than what they are offering to lessees/renters.

Leasing is an expensive rental if you don't intend to just pay it off at the end of the lease. Total price can still be negotiated the same and then you can decide if you want to lease or buy before you go into finance.

noobytoogy · Feb 2, 2017

Due to a change in UK consumer law last year there is a possibility that some owners of affected cars might get their full purchase price refunded AND get to keep the car too! At least one family member might get their new to them Skoda estate for free!!

I8ABUG · Feb 2, 2017

Lessees don't own the car, and they have a guaranteed buyback after the lease term. They don't have as much skin in the game, and IMHO shouldn't receive the same compensation as someone who owns the car.

JettaGetUpandGo · Feb 2, 2017

Thinkin... said:
That doesn't look right. You have to use the Clean trade as the base value with mileage and options for making the final calcs. Should be 42,206.62 and you have another 1,500 coming from Bosch.

Although I agree it's good money for sitting in my driveway, except when it snows...

The 2.0T was based on clean trade, but the 3.0L is based on clean retail. Also, I have a feeling that the $1500 from Bosch is built in to the $5155 fixed component of the buyer compensation. The only reason I say this is when I figure out the amount not taking mileage into consideration I am in the upper range of what is shown on the charts for my year/model. The chart states the $1500 is included in that range. Adding $1500 would put me outside of the stated range.

If I'm wrong it's an added bonus that would further sweeten the deal!

BenTDI · Feb 2, 2017

JettaGetUpandGo said:
The 2.0T was based on clean trade, but the 3.0L is based on clean retail. Also, I have a feeling that the $1500 from Bosch is built in to the $5155 fixed component of the buyer compensation. The only reason I say this is when I figure out the amount not taking mileage into consideration I am in the upper range of what is shown on the charts for my year/model. The chart states the $1500 is included in that range. Adding $1500 would put me outside of the stated range.

If I'm wrong it's an added bonus that would further sweeten the deal!

I wonder too, where the Bosch money is? It is not mentioned in any of the PDF's on the FTC or the VWsettlement-site.

Could it have been baked-into the $5,155 fixed-money part? Hmmmmmm . . .

Mythdoc · Feb 2, 2017

MTreg said:
Isn't leasing a car analogous to leasing a house? If you had an option to buy a house you had leased and found elevated radon levels during an inspection would you expect to receive any compensation?

A better analogy than radon would be a crack in the foundation. If an agent lied to you and got you to enter a lease-purchase arrangement on a house there might be some penalty compensation in order. But you would not be losing much by walking away from a deal that was shown to be bad moving forward. You would not be entitled to retroactive compensation for living in a house that could have developed a more serious problem but didn't. Compare that to a purchase contract and you see a very different scal of damage from the lying.

Also add in that for the period of the lease to now, you have been driving what you paid for in terms of vehicle performance. The pollution when idling in your garage may have had a small impact, but that is not what is driving this settlement.

I8ABUG · Feb 2, 2017

BenTDI said:
I wonder too, where the Bosch money is? It is not mentioned in any of the PDF's on the FTC or the VWsettlement-site.

Could it have been baked-into the $5,155 fixed-money part? Hmmmmmm . . .

The Bosch money is built into the equation somewhere. See the footnote at the bottom of this document:

https://www.ftc.gov/system/files/documents/cases/vw_payment_range_table.pdf

The settlement also mentions $ 250 from Bosch for each 2.0L buyback. I wonder if that was already worked into the 2.0L buybacks, or if they are going to get an extra $ 250? Not sure, but I don't think Bosch was a part of the 2.0L settlement.

BenTDI · Feb 2, 2017

I8ABUG said:
The Bosch money is built into the equation somewhere. See the footnote at the bottom of this document:

https://www.ftc.gov/system/files/documents/cases/vw_payment_range_table.pdf

The settlement also mentions $ 250 from Bosch for each 2.0L buyback. I wonder if that was already worked into the 2.0L buybacks, or if they are going to get an extra $ 250? Not sure, but I don't think Bosch was a part of the 2.0L settlement.

Thanks, that totally clears that up.

BenTDI · Feb 2, 2017

Someone should offer up their PayPal and a $2 per calculation fee to figure out their buyback for them-ha!

It is pretty simple once one has the formula and tables. The ranges already do a great job anyway.

m-fine · Feb 2, 2017

Sharkwaldo said:
I think the idea there is that you got to lease with the residual already set at lease origination, so you can walk away without taking a hit in value. So you are just getting paid for the FTC false advertising portion of things. Of course that stinks if you wanted to buy it, but if you wanted to buy it in the first place a lease is kind of a weird choice. At least you get a way out without taking a financial hit, and some cash besides.

I leased mine instead of buying because there was a big difference in price plus 0% interest on the lease. The truth is, leasing almost never makes sense UNLESS you plan to buy it out at the end. Otherwise leases are generally more profitable due to a generous residual cushion.

By leasing we are paying too much for depreciation over the first three years, but we can recover that by buying it out at the end. In effect it is just a financing decision, and we are getting screwed for the way we chose to finance.

IMHO, a lessee who buys out the lease (at any date) should be treated like an owner and get the same comp. No more, no less.

mscot · Feb 2, 2017

JettaGetUpandGo said:
I put together a quick Excel spreadsheet to calculate the buyback amount then the benefit of waiting additional time to reach the maximum value:

So, you stand to get $900 each month you hold it? Damn, that means it makes more sense to take a loan out on your next vehicle with a modest down payment rather than paying most of it in cash like I intended to do.
Can you refinance car loans? I'd want to get my monthly payment down to as little as possible once I got the money from Vdub.

Anyway you could send me that excel file?

BenTDI · Feb 2, 2017

m-fine said:
I leased mine instead of buying because there was a big difference in price plus 0% interest on the lease. The truth is, leasing almost never makes sense UNLESS you plan to buy it out at the end. Otherwise leases are generally more profitable due to a generous residual cushion.

By leasing we are paying too much for depreciation over the first three years, but we can recover that by buying it out at the end. In effect it is just a financing decision, and we are getting screwed for the way we chose to finance.

IMHO, a lessee who buys out the lease (at any date) should be treated like an owner and get the same comp. No more, no less.

Are lessees allowed to buy the Gen2's when the leases are up?, and then become eligible for modification-money?

BenTDI · Feb 2, 2017

mscot said:
So, you stand to get $900 each month you hold it? Damn, that means it makes more sense to take a loan out on your next vehicle with a modest down payment rather than paying most of it in cash like I intended to do.
Can you refinance car loans? I'd want to get my monthly payment down to as little as possible once I got the money from Vdub.

Anyway you could send me that excel file?

Check the time periods, the $900 increase is every year for the low mileage, not every month.

$900 per month, shoot, after 10 months would be $9,000!

bman400 · Feb 2, 2017

Where did you come up with the $5155 Fixed Component for owner Restitution?

JettaGetUpandGo said:
The claim submission deadline is 6/1/19 for Generation 1 vehicles. That's a 52,500 mileage reduction for anyone that parks their car and waits. That is just the claims deadline, the actual turn-in date is what the mileage adjustment is based on which could further add to the reduction. There are holding costs such as minimal insurance (comprehensive only), storage (if not free), and the risk of repair if the vehicle does not start after sitting.

I put together a quick Excel spreadsheet to calculate the buyback amount then the benefit of waiting additional time to reach the maximum value:

MTreg · Feb 2, 2017

The leasing company owns the car so they should be entitled to that part of the deal.

ccrocket · Feb 2, 2017

zylinderkopf said:
So who plans on keeping their Gen 1? i have a 12 that is good to me. It would be difficult to find something that the touareg is capable of doing. Is it possible that local governments that ban the registration of a car if I go to sell my Gen1 later on?

Can't fathom why anyone would not take the buyout for a Gen 1. If you love the Treg that much, just sell it back and buy a newer one after they are fixed. You have plenty of time to wait for a Gen 2 fix to come along while still enjoying your current Treg, but you would be throwing away at least $20K or more in free money from VW. Not sure why anyone would do that.

VW TDI EPA Recall (2.0L and 3.0L)

Sharkwaldo

MTreg

BenTDI

jwm_mwj

tregger

noobytoogy

I8ABUG

JettaGetUpandGo

BenTDI

Mythdoc

I8ABUG

BenTDI

BenTDI

m-fine

mscot

BenTDI

BenTDI

bman400

MTreg

ccrocket

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