Author Topic: Car Reform Advice - Volkswagen TDI Owner  (Read 1565 times)

KayoticSully

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Car Reform Advice - Volkswagen TDI Owner
« on: July 23, 2016, 09:36:33 PM »
Before I found MMM, before my eyes were opened to the truth, as a total clown car sucka, I had purchased a brand new 2013 Volkswagen Passat TDI SEL.  At the time, I thought I was doing the "smart" frugal thing.  Granted I was coming from an SUV that drank fuel down at 13 MPG... it definitely was better in some respects.  Since finding MMM, I have paid off the car in full and ended up keeping it (I know... I know... if you wouldn't but it now, then sell it) but it does actually do pretty damn well on fuel (43-55 MPG with minimal efficient driving behavior).  Long story of why I still have the car short.... the Volkswagen TDI scandal happened and the value of my car plummeted.  This has led to me holding onto it longer (for the sake of having no loan payment and again it is pretty fuel efficient).  Now that the scandal's solutions are coming to light, I feel that the buyback option along with the cash payment in damages is my best bet to get rid of the car for the best possible price.  The program isn't finalized yet, but I'm sure its going to be better than any private sale at this point.

My thoughts are to hold onto the car until that program is finalized, go with the buy-back option (at pre-scandal prices supposedly) along with the cash payment for damages I should be able to buy a MMM approved car and hopefully have some money left over to invest.

My questions for the far more seasoned mustachian's are....
Is my plan the best course of action here, any advice on this?

What MMM approved cars should I look for that are comparable to a volkswagen passat? I know I need to make sacrifices but I really do like the roominess of the car and the cargo space.

I know MMM type car's do have better insurance rates, but my car insurance is super inflated right now due to some other dumb mistakes I have made in my past. I don't feel comfortable going into it, but my question is how significant of savings could I expect with having a major black mark on my driving record?

Any other advice you can give to someone starting their FI journey who is prepared to "downsize" their clown car?

Thanks!

ZiziPB

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Re: Car Reform Advice - Volkswagen TDI Owner
« Reply #1 on: July 24, 2016, 05:11:13 AM »
You can figure out exactly how much you will get for your car: http://forums.tdiclub.com/showthread.php?t=463038

I have a 2014 JSW with low mileage so the money is good but I am planning to drive it for a few more months because the buyout price doesn't change during that time, so I'm driving for free.   After that I probably will get another VW because I really like my car.

KayoticSully

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Re: Car Reform Advice - Volkswagen TDI Owner
« Reply #2 on: July 24, 2016, 09:27:57 AM »
Wow, I think I'll get a lot more than I was expecting for the car.  I really am driving for free right now then, or very close to it.  I do love my passat, but I think I will opt for a cheaper car (maybe honda or hundai).  My goal is to have some money left over to invest if possible.  Maybe I will be mustacian enough to find and buy a used car to really drive for free.  I will have to see where I am once this deal gets finalized and starts rolling our proper.

chemistk

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Re: Car Reform Advice - Volkswagen TDI Owner
« Reply #3 on: July 24, 2016, 01:15:24 PM »
As you have just seen, you will get a lot of money back for your car. Volkswagen was not treated kindly, and American owners will be offered a very, very generous amount of money. This kind of an opportunity won't likely happen to you again, so take it.

Others will recommend a Honda Fit, Used (Gen 2) Prius, Used Scion xA, Pontiac Vibe, etc. (You get the picture?). Evaluate your needs, look at what you can afford, and narrow your options from there. Don't take on a payment. Don't lease anything. Drive only what you need to serve you well.

As for the insurance black mark, I had one a few years ago, and over time my rates have gone down. You absolutely, positively want to shop around for the lowest rate with the minimum coverage you need. If you own something worth $6000, what's the point paying out the nose for insurance that you'll almost never use. Just by paying off a car loan, and lowering my coverages, I dropped my insurance rate 60% last year.