You do have to put it towards a new car though.
Volkswagen has already been busy trying to offer discounts and incentives to owners of diesel models who were impacted by the scandal. While it's not required based on the settlement of the scandal, dealerships still need to find ways to incentivise people to buy new Volkswagen models. Hyundai has already taken advantage of the situation by offering discounts for any Volkswagen diesel owner to buy one of its cars. According to GreenCarReports, Volkswagen is now offering a loyalty reward to former VW owners.
This incentive is not targeted towards TDI owners specifically, rather previous VW customers to retain brand loyalty. Owners of any 2001 or later Volkswagen model can qualify for this $1,000 loyalty bonus towards the purchase or lease of a new car. A few models are excluded from this deal, including the Golf R, Golf Alltrack, or #PinkBeetle. The deal does not require you to trade in your old car and the bonus can be applied to family members in the same household. You can also combine this deal with any other incentives that Volkswagen is offering. In addition to the main Volkswagen brand, Audi will offer loyalty bonuses to its current owners as well as bonuses for shoppers coming from competing brands.
It seems like everyone is jumping on the opportunity to cash in on Volkswagen's mistake. Volvo has offered TDI owners a five-year extended warranty and $750 off a certified-preowned model. Chevy will also target TDI owners when its Cruze diesel goes on sale next year. If you do own a Volkswagen that is newer than 2001 and you still want to stay with the brand, now is the time to buy a new car.