Should You Take The VW TDI Diesel Payoff? The Podcast

"SteveLehto" (stevelehto)
12/17/2015 at 09:00 • Filed to: None

So, VW cheated on some tests and now there are almost half a million cars out there in violation of Federal standards. Before they fix the cars, VW is offering their customers some free stuff. Should you take it?

Yes. They are going to give you (if you owned or leased a car on November 8, 2015) two $500 prepaid Visa cards - one good anywhere and one good at the VW dealer - and 3 years of 24-hour roadside assistance. This is with no strings attached. In other words, you can take the stuff and still sue them if you are so inclined. You are an American, aren’t you? (It is unclear what, if anything VW will do for the 10.5 million cheating diesels in other parts of the world, BTW.)

There are some things you need to do - if you do nothing, you will not get these cards. So, in this week’s podcast I answer any and all questions you might have about this VW “goodwill” package. What to do, where to go and so on.

The audio:

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And the video:

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This website may supply general information about the law but it is for informational purposes only. This does not create an attorney-client relationship and is not meant to constitute legal advice, so the good news is we’re not billing you by the hour for reading this. The bad news is that you shouldn’t act upon any of the information without consulting a qualified professional attorney who will, probably, bill you by the hour.

DISCUSSION (97)

bobbe17 > SteveLehto
12/17/2015 at 09:38

Got our cards on Monday, haven't taken them to the dealership yet though. We'll likely use the dealership card for the 80,000 mile service in about a year and plenty of parts for our B5 Passat.

SteveLehto > bobbe17
12/17/2015 at 09:39

Cool. Let me know how the process goes. I bet some dealers try and turn it into a hard-sell opportunity.

Keith O'Toole > SteveLehto
12/17/2015 at 10:57

Same as bobbe17, we’re 60 miles from the closest dealer (which is why our ‘15 is going on 46k miles) but plan to get them activated between Christmas and New Years. Will report back.

Gizmo44 > bobbe17
12/17/2015 at 10:59

I think the dealership credits do have an expiration date, so make sure you check on those so you’re not left actually paying for that surprise bill.

move-over-peasant-I-have-an-M5-in-the-shop > SteveLehto
12/17/2015 at 11:00

can't watch or listen at work (stupid filters), but if this doesn't disqualify you from future action, would there be any downsides to this?

Stephen > SteveLehto
12/17/2015 at 11:01

I would expect so. Dealers know you effectively have a $1,000 incentive in your pocket. I am sure plenty of VWs have been sold over lesser incentives.

For the customers worried about the recall possibly hurting performance and efficiency, “hey, why don’t you get into this gas model? better performance and still very good efficiency”

NegativeEd > SteveLehto
12/17/2015 at 11:04

Going to activate tonight after work. Probably use the Stealership card for service on the wife’s 2012 Beetle... because they don’t stock or order parts that I need for my ‘72.

If they attempt the hard sell I'll let them know the only vehicle I'll spend those cards on that they have onsite is the black '68 Bug on the showroom floor. I'll keep buying cars here if you sell me THAT... I'll give you two prepaid Visa cards in exchange.

Straightsix9904 > SteveLehto
12/17/2015 at 11:07

Ha, I saw this podcast pop up on my phone this morning and already gave it a listen as it is very relevant to my interests.

I got the card earlier this week but haven’t activated it. I just bought a new house so that $500 cash is basically already spent. I’m going to have to read the fine print on the dealer cash though. I was planning on throwing it in the glove box and getting more free oil changes, I guess I may have to pick up a set of mud flaps to use it up if it expires too soon.

Edit: how am I in the grey? I’ve been here for 5 years!

jimz > SteveLehto
12/17/2015 at 11:07

it’s way more than any owner would get out of a class-action lawsuit, that’s for sure.

SteveLehto > move-over-peasant-I-have-an-M5-in-the-shop
12/17/2015 at 11:07

No, there is no downside. But you have to take action and follow through. If you do nothing, you get nothing.

SteveLehto > Stephen
12/17/2015 at 11:08

Agreed.

SteveLehto > NegativeEd
12/17/2015 at 11:08

Thanks for the note!

SteveLehto > Straightsix9904
12/17/2015 at 11:09

How does anything work with Kinja?!

Rooster Cogwheel > SteveLehto
12/17/2015 at 11:09

Waiting for mine to come in the mail. Got my Sportwagen at the end of May, so services are still covered for awhile. Since the $500 dealership cash has a 1-year time frame, I’m thinking I’m going to go with the factory base racks and bike holder attachment ($515). At least, I’m hoping I’ll be able to use the dealership cash on that.

SteveLehto > jimz
12/17/2015 at 11:10

I agree.

SteveLehto > Rooster Cogwheel
12/17/2015 at 11:10

You should be able to.

HammerheadFistpunch > SteveLehto
12/17/2015 at 11:10

Buying winter wheels and tires with mine today. More expensive than tire track but free money is free

move-over-peasant-I-have-an-M5-in-the-shop > SteveLehto
12/17/2015 at 11:11

That sounds like too much work. I’ll stick to replying to the Nigerian princes that e-mail me and hope one of them pays off.

That, and I don’t own a VW.

I guess it's pretty cool of them to do this, even if half of it will be an attempt at a hard sell for service/new car. I'm a little surprised that they're doing this with no strings attached, though. I guess the corporate math worked out to this route being less costly than the bad PR of not doing anything.

SteveLehto > move-over-peasant-I-have-an-M5-in-the-shop
12/17/2015 at 11:12

I was amazed at the offer too. I suspect they are just hoping it will help them with the PR nightmare this is probably going to become anyway.

Wyze_Rabbit > SteveLehto
12/17/2015 at 11:15

They most certainly did when I took mine in to get activated. They tried to get me to use the cards as a down-payment on a new VW. Politely told them no of course. But then the service department tried to get me to do some services on my car (wiper blades, light bulbs, fluid flushes, etc.), politely told them no as well.

Prophet of hoon > SteveLehto
12/17/2015 at 11:16

I got the package with the VISA and VW card. I’ll head down on Friday to get it activated.... worse part is I have to drive the Jetta....

SteveLehto > Wyze_Rabbit
12/17/2015 at 11:17

Oh come on. Those VW brand wiper blades are worth their weight in gold!

HammerheadFistpunch > SteveLehto
12/17/2015 at 11:18

I already got a call from the dealer re: sales...it didn’t go well for him.

SteveLehto > HammerheadFistpunch
12/17/2015 at 11:22

Wow. Gotta love him suggesting that since the one you are driving now is so bad maybe you should buy another.

DodgeyRammer > SteveLehto
12/17/2015 at 11:24

Strangely, VW has never appealed to me until this scandal. Now i want one...

I worry myself sometimes.

Agrajag > SteveLehto
12/17/2015 at 11:25

I activated mine yesterday. They had the service manager doing the activations for people in his office. Other than his office not being one that is setup for customers, it was pretty painless.

HammerheadFistpunch > SteveLehto
12/17/2015 at 11:25

right? “well what you’ve got on your hands now is real stinker, come on in and I can get your payments going on your brand new stink....er...car.”

highplainsdrifter > SteveLehto
12/17/2015 at 11:26

I haven’t got my cards.yet but I’m looking forward to it.

Candymaker > SteveLehto
12/17/2015 at 11:29

Got my cards for both cars this past week. I’ve got the 120k service (timing belts, water pump, etc.) coming up. Hope to get them activated at the dealer tonight.

SteveLehto > DodgeyRammer
12/17/2015 at 11:34

There is something intriguing about the audacity of it all.

SteveLehto > Agrajag
12/17/2015 at 11:34

Nice. I am sure this will vary wildly from dealer to dealer.

HammerheadFistpunch > Rooster Cogwheel
12/17/2015 at 11:35

You can use it on anything the dealer sells, Im getting tires with mine.

SteveLehto > highplainsdrifter
12/17/2015 at 11:35

Let us know how cleanly the process goes. I bet there will be a few doozies out there.

SteveLehto > Candymaker
12/17/2015 at 11:36

Cool. Let us know how it goes.

Winston Matthews > SteveLehto
12/17/2015 at 11:38

Went into my dealership yesterday to activate my goodwill package, sales guy didn’t try to sell me on anything just activated it and said thanks for coming in. No pressure at all.

Rooster Cogwheel > HammerheadFistpunch
12/17/2015 at 11:40

Nice. I was thinking about tires, but mine are still the factory tires, which aren’t the best, but have less than 10k miles on them. I wonder if a Carplay upgrade is covered (or, if they even can upgrade the system). That was my other thought.

HammerheadFistpunch > Rooster Cogwheel
12/17/2015 at 11:41

I’m getting winter tires and wheels. though that may not be applicable to your situation.

Rooster Cogwheel > HammerheadFistpunch
12/17/2015 at 11:43

Ha. Yeah, I’m in Austin. It’s supposed to be 80 degrees on Christmas day.

SteveLehto > Winston Matthews
12/17/2015 at 11:43

Wow. Let’s say that’s one end of the spectrum. I still think we will hear from some people at the other end.

Wyze_Rabbit > SteveLehto
12/17/2015 at 11:52

Actually, they are! Cost about the same as a decent pair from Meijer and they work great. It’s the 3 hours of labor they get to charge you to install them they are going for.

Turbineguy: Nom de Zoom > SteveLehto
12/17/2015 at 12:03

Aaargghh. I traded my '12 Passat TDI back in April. There's got to be some way I can weasel my way into this deal...

Epic Failure > SteveLehto
12/17/2015 at 12:03

I received my diesel money this week.

Of course, it was one week AFTER I busted my fog light and I got it fixed. If rain wasn’t in the forecast I would have waited.

Unfortunately, they don't charge retroactively.

xxxxxxxxxxxxxxxxxx > SteveLehto
12/17/2015 at 12:08

We got our cards this week. Just have to go to the dealer to activate them. I home the visa works. I've had problems with visa gift cards in the past. I might just try to buy a $500 Amazon gift cert with it.

drshaws > SteveLehto
12/17/2015 at 12:08

Also - just note - you need a Service Manager or a Sales Manager present to do the activation. Call ahead if you’re going during potentially “off-hours” (aka - 15 minutes before Sales closes and Service is already closed).

BOSdriver > SteveLehto
12/17/2015 at 12:09

Already activated mine. Just bought some new Pirelli all seasons and will keep the dealer card for 80k service on my 2012 Passat TDI.

So simple to activate once you have the cards:

1. Bring car to dealer.
2. Hand over both gift cards, show license and registration.
3. Verify mileage - either you tell them or they go out and verify.
4. Wait a minute for the VW rep to enter the info.
5. Take cards and go.

SteveLehto > xxxxxxxxxxxxxxxxxx
12/17/2015 at 12:12

Let us know how it goes.

SteveLehto > drshaws
12/17/2015 at 12:13

That’s a good idea anyway. This can only be done at “participating dealers” so, theoretically, a dealer might not even be “participating.”

SteveLehto > BOSdriver
12/17/2015 at 12:13

Nice. Seems like it is going smoothly for most people so far.

xxxxxxxxxxxxxxxxxx > SteveLehto
12/17/2015 at 12:23

Will do. I almost hope they try the hard sell. Kinda looking for a good argument. :-/

Zed's dead baby, Zed's dead. > SteveLehto
12/17/2015 at 12:26

Actually, the come with a 12 month free replacement warranty.

So I have new wipers as soon as they streak. My record is 3 pairs in a year. Saves money. ;)

Ryan > SteveLehto
12/17/2015 at 12:39

Went in with to get mine yesterday. No hard sell for me. The salesman I spoke to while eyeing a particular Tiguan while waiting said they are essentially not taking diesels on tradein. The price he is allowed to offer is way below what he would expect anyone to entertain.

TahoeSTi > SteveLehto
12/17/2015 at 12:41

I’m more worried about the potential of a buy back, I have a 2009 TDI Sprotswagen build date December 2008, which means it’s one of the older ones. My intent with this car is to drive it into the ground and wont be happy unless I break 300,000 miles. If a buyback happens will I be force to sell my car or is there a chance I can keep and just never sell it?

SteveLehto > TahoeSTi
12/17/2015 at 12:47

It is hard to say what would happen if VW actually admitted they had no fix. We’ll have to wait and see because much of this is uncharted territory.

BOSdriver > SteveLehto
12/17/2015 at 12:50

My local dealer will allow people to trade the $500 VW dealership card in for a $500 gift certificate to use at the dealer. In MA, that means no expiration date allowing you to wait and use it when you like. I would also imagine that you can transfer or sell the dealer gift certificate to another person so you can get cash for it from someone else.

2012VWowner > SteveLehto
12/17/2015 at 12:52

Could it be possible that by accepting this VW payout a judge at some point in the future would reduce any award in like? So if a settlement is reached and say it is for $1,500. A judge may only award $500 as a person who accepted the $1,00 payout already received some settlement dollars.

SteveLehto > BOSdriver
12/17/2015 at 12:55

Interesting.

SteveLehto > 2012VWowner
12/17/2015 at 12:56

No. The terms are quite clear that this will not impact your legal rights.

NegativeEd > SteveLehto
12/17/2015 at 12:56

Anytime. I'll let you know how the experience goes at the dealer.

bobcephalus > SteveLehto
12/17/2015 at 13:02

Got my cards on Monday, started xmas shopping thereafter. They were very proactively apologetic. Said about 25% of their sales were diesel engines at the time the news broke.

HeckLegler > Winston Matthews
12/17/2015 at 13:11

Samesies.

Isaac S > SteveLehto
12/17/2015 at 13:21

I had absolutely no issue at all. Took mine in and got them activated while doing the 50k service. They did not even try to up-sell any extra service. They closest I got to an up-sell was them reminding me to come back by next November before the expiration of the card so that I don’t leave money on the card.

SteveLehto > Isaac S
12/17/2015 at 13:24

Nice. It seems that most people checking in have had decent experiences. I never would have guessed it.

DieselWagen > Winston Matthews
12/17/2015 at 13:29

Same here, they were very polite, and did not try to do anything except activate the cards.

Metalx1979 > SteveLehto
12/17/2015 at 13:45

I have a stupid question: I leased a 2012 TDI, then bought a 2014 TDI, should I not get two bribery packages since I was duped twice.

CamrySlowEdition > BOSdriver
12/17/2015 at 13:46

I’m in Littleton, MA; what dealer did you use?

SteveLehto > Metalx1979
12/17/2015 at 13:50

Did you have them both in November or did you get rid of the first when you got the second? If so, you were ripped off in a row but not at the same time.

Ben Carufel > SteveLehto
12/17/2015 at 13:56

Got our cards in earlier this week. I went to the dealer Tuesday morning and got mine activated. The guys were super helpful and quick. I already blew the whole Visa one to pay for most of an iPad Pro. Pretty sure I’ll blow the Dealer card to pay for most of a set of roof rack crossbars, bike holders, etc. My 2015 Golf TDI 6MT doesn’t need anything that isn’t covered under warranty until after the cards expire in Nov. 2016...

Girlfriend is going in today to activate hers. her 2010 JSW TDI DSG with 83,000 miles needs control arms and an axle — will use the Visa gift card to pick up some Lemforder versions of those, and the dealer gift card to pick up some dealer-only bits it needs (rear bumper lower half, one particular turbo hose, etc).

Metalx1979 > SteveLehto
12/17/2015 at 14:06

I gave in the 2012 leased one to get the 2014 one.

I only leased the car because I didn’t know if I would like the TDI (obviously I did) so really, I have been cheated twice, once with the leased car (was not sure I wanted to commit) then when I bought a newer one (made the commitment).

Metalx1979 > SteveLehto
12/17/2015 at 14:07

Oh, and I leased the 2012 one in July of the that year and bought the 2014 one in September of that year.

avogadro > SteveLehto
12/17/2015 at 14:43

It would be great to have a poll to get a quick idea of what experiences were like. (Mine: No pressure at all. In fact, there were a lot of apologies and mutual expressions of concern. The dealership was absolutely dead inside.)

Urdime > SteveLehto
12/17/2015 at 14:51

I have not applied yet. I am very suspicious of them wanting the mileage. Will that be used to determine who gets buy back and who gets fixed.

Since at this point they don't know who owned these cars, will this be a list of owners that they will have to turn over to the EPA?

Chasaboo > SteveLehto
12/17/2015 at 15:13

If I owned a Gross Polluter Volkswagen, I’d take what’s behind the curtain.

uthor1981 > SteveLehto
12/17/2015 at 15:15

The wiper blades that came with my VW lasted me seven years. All other wiper blades (albeit on different cars) lasted me about six months.

I bought new VW wiper blades when I replaced them. Granted, I didn’t buy them FROM VW as I’m not paying for that markup.

Ben Carufel > Ben Carufel
12/17/2015 at 15:27

Oh, and I should add that the dealer where I activated the cards (VW Kearny Mesa in San Diego) said to save the receipts on parts/etc. on the $500 dealer gift card, and they’ll give me a free full detail after I’ve used the last of the money.

Kind of nice of them to offer that, I think.

SteveLehto > Urdime
12/17/2015 at 15:31

The feds just go off of vehicle registrations. Is your car registered? They know you have it.

SteveLehto > uthor1981
12/17/2015 at 15:32

I’ve been hearing good things about their wiper blades. Who’d of thunk it?

uncle rico > SteveLehto
12/17/2015 at 15:46

just rec’d another letter yesterday from Mr Horn (CEO) of VW America about my second car 2012 Touareg TDI also being non compliant with emissions regulations. Interesting to read the language in this letter where CARB is ‘alleging’ that the 09-16 Touaregs are out of compliance. Like some how there is a chance that these cars will be in compliance and that CARP is incorrect yea right.

But you will be pleased to know that Mike is writing us today to offer ‘a personal and profound apology’. Gosh I feel all warm and fuzzy now. Just thinking how my 50k vehicle has almost no resale value left and I could be in store for a whopping $500 visa gift card(my second) , Fingers crossed

Urdime > SteveLehto
12/17/2015 at 15:56

Wouldn't the Feds have to sift through the registrations from each state.

SteveLehto > Urdime
12/17/2015 at 16:15

They have these things now called COMPUTERS which do that. Takes about 10 seconds (+/-).

ronmler3 > SteveLehto
12/17/2015 at 16:42

Is this money taxed, federally? I know you wouldn’t know about states or cities, but, if it’s federally taxed, it’s probably taxed in many states and cities.

ronmler3 > Wyze_Rabbit
12/17/2015 at 16:43

lol!! What did they do, line up?

SteveLehto > ronmler3
12/17/2015 at 16:48

I don’t believe it is. (Consult a CPA to be sure . . .)

ronmler3 > Urdime
12/17/2015 at 17:26

I’m amazed that you don’t think “they” know who owns which car(s).

ronmler3 > SteveLehto
12/17/2015 at 17:27

lol!! Wow - things sure have moved on....!!

ronmler3 > Metalx1979
12/17/2015 at 17:29

You weren’t “hurt” in any way when you ditched the nearly-brand-new “old” one to buy the brand new one.....

xxxxxxxxxxxxxxxxxx > SteveLehto
12/17/2015 at 19:45

So now they are setting up a fund for those that have filed lawsuits.

http://www.engadget.com/2015/12/17/vw-…

I didn’t file because I took your advice. ;-)

So should we file now?

SteveLehto > xxxxxxxxxxxxxxxxxx
12/17/2015 at 19:48

Still might be premature. What if they come up with a fix?

ronmler3 > SteveLehto
12/17/2015 at 20:19

Sorry - I should have watched the whole video first.....

xxxxxxxxxxxxxxxxxx > SteveLehto
12/17/2015 at 20:40

then we are screwed because we are hoping for a buyback!!!!

360ad > SteveLehto
12/17/2015 at 21:40

I’ve worked in advertising for a few brands and this demonstrates what I’ve been telling co-workers and clients: A brand’s image has much to do with the dealership experience. If a corporate can’t reign in the dealers (or the dealers’ fail to understand this) it’s very difficult to change brand perception. Same reason Kia had trouble selling their K900 and Hyundai their Equus.

NegativeEd > SteveLehto
12/18/2015 at 06:54

Was easier than making an appointment to get your brakes done. Though the dealer I work through had the highest TDI sales, so figured I’d run into others and wasn’t disappointed. An older woman came in as the customer service counter handled mine. Her reaction must be more along the lines of some one who didn’t know corporations were out to make shit tons of cash or that they ever committed fraud.

liquid_popcorn > Rooster Cogwheel
12/18/2015 at 15:10

If you have a 2015 (MIB-I infotainment) you cannot upgrade it to MIB-II (Carplay/Android Auto). It’s like 3k in parts alone, and no one that I’ve heard of has successfully swapped it yet.

Source: I work for VW, hahah

Rooster Cogwheel > liquid_popcorn
12/18/2015 at 15:59

Ooof. Big Rack it is! Thanks for the information. Much appreciated.

His Stigness > SteveLehto
12/18/2015 at 16:35

My dealer didn’t try and sell me anything, they didn’t even apologize, they just “activated” it and said here. This was also after I had come in earlier only to be treated like shit and said I’d have to wait half an hour because the service manager and sales manager were busy. Flames were shooting out of my ears I was so pissed.

I honestly don’t think they did anything other than record we came by. There was no entering of info online, just writing stuff down.

liquid_popcorn > Rooster Cogwheel
12/19/2015 at 11:32

no worries!

Stevesls6 > SteveLehto
12/23/2015 at 16:25

I actually went in got my cards activated and I wanted to see what my car was worth. I bought it new on 7/30/15 for $24.5K and now its worth $16k. I know you take a hit when you drive a car off the lot but that’s a loss of over 30% .

Candymaker > SteveLehto
01/04/2016 at 14:50

This couldn’t have been easier. Got to the dealer, and another person was currently getting their cards activated. When it was my turn, the dude went out to look at my mileage and VIN (60 seconds max,) then came in and gave back my keys. He took my license and registration, went to the parts counter computer, and came back about 3 minutes later. In, out, done. Told me to have a nice day and I was on my way. No pressure, no extra questions, no sales attempts, nothing. I was offered a bottle of water and that was it.