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Per many previous posters, I would at least ask for retail value of the vehicle and then some and here is why:
1. Their mistake is causing you unnecessary burden. There should be some compensation for this alone.
2. If you were to actually trade in your vehicle you would most likely be receiving a sales tax credit on the difference of the trade-in value versus the new car purchase price.
3. When you go to purchase another vehicle, which you now MUST do because of their mistake, you pay retail, not trade-in value.
4. You will be forced to pay all of the licensing/registration and BS doc fees when you purchase another vehicle.
I would find a few comparable vehicles available for sale in your area and calculate what the sales tax and licensing fees would be so that you have an out-the-door price. Better yet, visit the dealership and let them know your situation and ask them for a written out-the-door purchase price summary. I would try to stick to vehicles for sale at VW dealerships if possible.
Compile this and present it to VAG of America. Show them how replacing your vehicle is going to cost more than what they are offering you and it's only fair that they compensate you to a degree that puts you back at net zero.
Furthermore, the financial impact of replacing the actual vehicle is only part of the equation. You have now been required to put time in researching how this impacts you and you will undoubtedly be spending time pursuing a new vehicle, all of which you should be compensated for. I would push for no less than $500 compensation for time and aggravation and would actually ask for more. My guess is they will give in pretty easily to these demands as they are not unreasonable and would not be worth their time fighting over it in court.
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