Poll

Would you leverage the cash you'd use to buy a car, if you could get 0% financing on the car, and 1% interest on the account where you'd park the cash?

Yes, it's worth it.
No, just save yourself some hassle.
Face-punch for even having to ask - we are born to struggle, and our money is here to work for us.

Author Topic: Leveraging VW buyback - now with poll!  (Read 1081 times)

coffeehound

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Leveraging VW buyback - now with poll!
« on: August 16, 2016, 07:10:49 PM »
Recovering Golf TDI owner here.....

I'm coming up on a buyback of my car, and finding something else to drive. What I'm thinking about doing is taking advantage of our good credit to get 0% financing for the replacement car, banking the payout check in a savings account somewhere like Ally, and putting a few of those dollars to work for the life of the loan, rather than paying everything up front for the car. I'd set up an electronic payment to have the finance company take the funds directly out of the savings account.

So, face punches aside for considering purchasing a newer vehicle, would you Mustachians set up a payment system like this?

I don't have the tools/space/knowledge to repair cars where I currently live (high-rise condo), so I am opposed to buying an older, non-CPO car at this time.

That said, I'm working through options for replacing a car that was pretty much perfect for me, except for the whole spewing-40-times-the-legal-limit-of-pollutants-despite-evidence-of-human-contributions-to-global-climate-change thing.

But I digress.... So, the current plan is to take the buyout as soon as possible, and purchase a new(er) car.  Any suggestions for zippy, economical, yet fun to drive small cars with decent fuel economy welcome.....

« Last Edit: August 17, 2016, 01:17:39 AM by coffeehound »

myhotrs

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Re: Leveraging VW buyback
« Reply #1 on: August 16, 2016, 10:12:44 PM »
We leased a 2011 Mazda3 (pre-MMM) for like $200/mo. Great car, I think much more fun than comparable cars like the Corolla. Pretty well built, its no Toyota but we had no issues at all in 3 years. Mileage was in the low 30s. My mom bought a 2014 new for like $16k. We got a Mazda6 next and really miss the 3.

Having said that, you're in a really great spot with the VW. You can drive it until the sell-back deadline in late '18 or 19 and still get the value as of 2015. You can beat it up and put 1,000,000 miles on it and still get Clean Value as of 2015. I would do that and take 1/2 the savings of driving a car for free and donate it if that's your thing.

coffeehound

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Re: Leveraging VW buyback
« Reply #2 on: August 17, 2016, 01:12:00 AM »
Having said that, you're in a really great spot with the VW. You can drive it until the sell-back deadline in late '18 or 19 and still get the value as of 2015. You can beat it up and put 1,000,000 miles on it and still get Clean Value as of 2015. I would do that and take 1/2 the savings of driving a car for free and donate it if that's your thing.


Well, not exactly.......
1. There is a mileage component that affects how much of the clean value as of 9/2015 owners will receive.  High mileage = less money.
2. The court has ordered VW to complete either A) the buyback or B) the (as yet not approved) emissions fix by 12/31/17.
3. I want this well-engineered piece of pollution and bad karma out of my life. I absolutely HATE liars and cheaters - I refuse to do business with them; and the idea of just continuing to drive around a vehicle that is so very, very polluting in highly-polluted LA is anathema to me.
4. My turn-in appointment is on or around 11/1/2016.

Thank you for the car recommendation - the Mazda 3 was my second choice car in 2013, when I bought my Golf.