2015 TDI Buy-back financial analysis

I've written in another thread about whether it makes sense for me to fix or sell back my 2015 A3 TDI. I decided to do an exact cost analysis of selling it back.

I did get some very good incentives which I qualified for, so my analysis may not work for everyone, but here are the exact figures.
Out the door price, including tax and license: $37,818
AudiCare pre-paid service: $810
Loyalty incentive: ($750)
1st payment by Audi: (400)

Total price paid by me: $37,478

Buyback: $37,778
Options: $870
Goodwill payment: $1,000
Bosch payment: $350

Total buyback amount: $39,998

Difference between buyback and my cost: $2,520

So if I sell my car back toward the end of the buyback period, it's as if Audi said, here's a free car for four years, with a total warranty. You just have to pay for fuel. At the end of four years, give us the car back and we'll give you $2,520.

Who can complain about that?

Even if I just get a new (2018 or 2019MY) A3 at the end of next year, the difference between the cost of gas and diesel, according to the US Govt website, will be $300 more per year. So the $2,520 I'm getting will pay for that, for eight years.

Of course, I'll be losing the great mileage I get now, which I'm not happy about. But on the other hand, I'll have another four years of complete warranty. If I fix my A3, who knows what the second stage fix will do, and the car will have diminishing value as it gets older. If VW/Audi had known how to engineer the cars originally to keep emissions low and fuel economy high, they would have done so.

have you factored in the value of the extended warranty?

willie
on the 162,000-mi/11-year TDI 2.0 warranty Gulf of Mexico

The extended warranty certainly has value; but it doesn't cover everything. And when the warranty is over, I would imagine the car would have greatly diminished value.

Also, my A3 doesn't have Apple CarPlay, a backup camera, front/rear parking sensors, or HomeLink, all things I would like which I could get in a 2018/19 A3 or other make of car.

Plus, I'd get another new car warranty for another four years.

financially, your best option is to hold onto the car for the entire period because there is no real depreciation other than the time value of money (should discount 2-3% for inflation) on the buyback.

Additionally, any tax on the value of the car (in my town excise tax) will diminish as the real "book value" of the car diminishes. Your insurance will cost less each ensuing year, all things being equal, due to the diminishing value of the car. Factor this against the same tax and insurance on a newer vehicle.

Balance the financial advantages against the possibility of the car being totaled in an accident. I would call it a calculated risk. Insurance will pay only book value of the car, and not factor in the buyback.

Despite all the financial analysis and the fact keeping the TDI is the better fiscal option, I took the money!

Reduced cost of insurance and registration are good points. I also have to factor that against a new vehicle, with another full 4-year warranty, obviating the need for repairs. While Audi has dramatically improved their reliability, the fact is that repairs, if necessary, are very costly. That's true whether you're going to a dealer or an indie shop.

Right now, the idea of getting another new car, with newer technology and another full warranty in 17 months, seems compelling. We'll see...