Yankinwaoz
Veteran Member
I've been mulling the buyback deal for a few days now. I see a problem, and I'm wondering about a solution to it.
The problem is that the buyback requires that the car drive under its own power to the dealer on the day of the return. It appears that we have two years to to this.
There is no way that VW is going to be able to buyback all 500k TDi's on one day this fall. It is going to take months.
That is the risk to us owners. Between now, and the day you surrender your TDi, you can lose your buyback through no fault of your own and end up with nothing.
There are two risks:
(1) Loss of vehicle through theft or accident.
(2) Critical mechanical failure
Regarding the first. We always had that risk. That is why we pay for insurance. My concern there is that most policies pay only the replacement value of the car. I suspect that the insurance will come up with a figure that is a fraction of the buyback value. What will the insurance company use to come up with a value?
Regarding the second issue. The risk is that we would have to pay for repairs, perhaps very expensive repairs, to get the car operational again. This would significantly reduce your equity. However, this is a risk we have today.
Personally, I want to wait as long as possible. My TDi is running great. I just paid it off. I would like to have a couple of years of no car payments. I see no reason to rush my surrender.
On the other hand, I wonder if I should surrender as soon as possible to eliminate the risks outlined above. If I bought a new car right away under warranty, then the risks are gone. But then I will be saddled with a new car payment that I didn't want.
I wish there was a way I could insure the risks. I know that an "extended warranty" is a total scam and worthless for risk #2.
For risk #1, I can't seem to get a straight answer from my insurance company about what the payout would be if my car was stolen or totaled. I don't think that the auto insurance companies have any products that deal with this unique situation.
So my question is: Has anyone managed to find insurance that will mitigated the risks described above?
Thanks
The problem is that the buyback requires that the car drive under its own power to the dealer on the day of the return. It appears that we have two years to to this.
There is no way that VW is going to be able to buyback all 500k TDi's on one day this fall. It is going to take months.
That is the risk to us owners. Between now, and the day you surrender your TDi, you can lose your buyback through no fault of your own and end up with nothing.
There are two risks:
(1) Loss of vehicle through theft or accident.
(2) Critical mechanical failure
Regarding the first. We always had that risk. That is why we pay for insurance. My concern there is that most policies pay only the replacement value of the car. I suspect that the insurance will come up with a figure that is a fraction of the buyback value. What will the insurance company use to come up with a value?
Regarding the second issue. The risk is that we would have to pay for repairs, perhaps very expensive repairs, to get the car operational again. This would significantly reduce your equity. However, this is a risk we have today.
Personally, I want to wait as long as possible. My TDi is running great. I just paid it off. I would like to have a couple of years of no car payments. I see no reason to rush my surrender.
On the other hand, I wonder if I should surrender as soon as possible to eliminate the risks outlined above. If I bought a new car right away under warranty, then the risks are gone. But then I will be saddled with a new car payment that I didn't want.
I wish there was a way I could insure the risks. I know that an "extended warranty" is a total scam and worthless for risk #2.
For risk #1, I can't seem to get a straight answer from my insurance company about what the payout would be if my car was stolen or totaled. I don't think that the auto insurance companies have any products that deal with this unique situation.
So my question is: Has anyone managed to find insurance that will mitigated the risks described above?
Thanks