Neil, you are being too nice. I understand that you want neither compensation nor to take legal action, and that you just want the dealer to make things "right". My hat off to you. But you have to ask yourself, what does "right" mean? Does it mean they won't do this type of shenanigans again on yours or anyone else's car? (Unlikely, but nice to think they won't). Does it mean giving you the royal treatment moving forward if you decide to continue using this dealership? Does right mean you want to be protected from future problems that might result from, or be hastened by, the abuse the techs inflicted on your car? "Right" can mean a lot of things. However, nothing teaches a better lesson than punishment. The dealer is a business, and businesses exist to make money. Nothing will teach a business to abide by a certain code of conduct unless their were financial consequences. Laws wouldn't exist if there weren't consequences for breaking them. If I were you, I would extract as much as you can from the dealership without involving lawyers to reach an out-of-court settlement. If this transgression were to go unpunished, there would be very little incentive for it not to happen again. The fact that you received a visit to your home by the service manager means the dealership is scared that there could be potentially large consequences. Use this to your advantage. Negotiate a larger settlement than what they're offering you. A $1500 credit is less than pocket change for a dealership. That's not even a blip on their radar.
Here's what I would do:
Demand $2500 in credit + a no-cost, zero-deductible 10/100k Platinum Drive Easy service plan. This is the highest tier extended warranty plan VW offers. It is good at any dealership and is linked to your VIN. This plan costs the dealer about $1200 and they sell it for anywhere from $2000-2500.
Demand that the techs get fired, and not get re-hired by the same dealership for at least five years. You will want both their firing and the signed agreement about their non-re-hiring in writing. It must be verifiable.
Take the $2500 and use as you wish. Since you state that you don't care about monetary compensation, donate $1500 to a charity(s) of your choice, and keep $1000 stashed away in a reserve fund, to be used for future repairs. You can even send a copy of your donation to the dealership to show them this wasn't about you looking for opportunistic financial gain. It will send the message that you simply wanted the dealer to realize there is a consequence to their conduct. The firing of the techs also sends a stern warning to the other techs at the dealership. This may even have more positive impact on preventing this type of scenario from happening again. A financial-only punishments means little-- they cut the check, wash their hands and move on. Nothing to see here folks, it's business as usual.
So, look at the potential wins here. 1) You get an extended warranty to protect you from legitimate concerns about future problems arising from the abuse (this is complicated because of your tune, but let's forget that for a moment, since other aspects of your warranty are still completely valid). You also have money in a reserve fund specifically for tune-related repairs that might not get covered by warranty. 2) The dealership gets a financial punishment-- not large, but something. 3) You get to feel good that a charity near and dear to you is getting a nice gift (don't forget to deduct it on your taxes
). 4) The techs' firing sends a loud message to the entire dealership-- don't f*** around with customers' cars.