Though he’s always had his sights set on a Tesla, Justin Ignas bought a 2012 Volkswagen Jetta TDI as his first car after graduating from college in 2012. Now Ignas, a 30-year-old IT worker in South Bend, Ind., has his chance to get behind the wheel of the forthcoming Model 3.

Volkswagen VOW, -2.78% diesel vehicle owners have been considering their options under the settlement plan the auto maker submitted in June, but some have already put down the $1,000 deposit for the Tesla TSLA, +1.65% Model 3 with the intention of using the money from VW’s proposed vehicle buyback program to help purchase the car.

“I want something that will be just as fun to drive or more fun to drive and more fuel efficient,” Ignas says about his decision to spring for the Model 3 after he sells back his Jetta. “I’ve wanted a Tesla since the Roadster came out, and now there’s the affordable Model 3.”

Under the proposed plan, owners of about 475,000 diesel vehicles can sell their car back to Volkswagen for its value before the emissions scandal was publicized or have the vehicle fixed to comply with federal emissions regulations. Either option would include an additional cash payment between $5,100 and $10,000, based on the car’s pre-scandal value. The plan will be up for approval on July 26, according to the company.

The settlement follows the company’s admission in September of fitting about 11 million diesel vehicles world-wide with a “defeat device” to cheat federal emissions tests.

Owners have voiced mixed opinions about the plan, with some considering it generous and others believing it didn't go far enough. However, many said they would not purchase another Volkswagen vehicle in the near future after the company had intentionally lied to them about the environmental impact of the cars. For those ditching their Volkswagens, the next question becomes what to replace it with.

Mazdas and Subarus are natural substitutes as affordable vehicles with good fuel efficiency and performance, the hallmarks of Volkswagen’s diesel vehicles, says Jessica Caldwell, director of industry analysis at Edmunds.com. However, for owners who care about those features as well as environmental impact and are willing to pay a premium for it, the Model 3 fits the bill.

“The Tesla Model 3 does make sense,” Caldwell says. Both the Model 3 and the VW diesel vehicles “are positioned as cool environmentally friendly alternatives to cars like the Prius.”

The Model 3 was introduced in March and Tesla is expected to begin deliveries at the end of 2017. The company has already received nearly 375,000 reservations for the vehicle as of May 15, each requiring a $1,000 deposit. The Model 3’s price will start at $35,000 before incentives.

Read more: Why Tesla’s Model 3 could mean better, cheaper cars from other luxury brands

With the $35,000 price point and luxury relatives such as the Model S sedan and Model X SUV, the Model 3 would be a move upmarket for many VW owners, who are expected to receive between about $12,500 and $33,000 in buybacks, says Michael Harley, an analyst at Kelley Blue Book.

But for VW owners eyeing Tesla, paying the premium is well worth it. “I’m surprised that more TDI owners aren’t planning on buying the Model 3,” says Molly Darling, 52, an Episcopalian priest in Vallejo, Calif., who owns a 2012 Volkswagen Sportwagen TDI. “All the features that a TDI offered in terms of performance, mileage would be superior. And the environmental impact is better.”

Darling says she was one of the first 100,000 customers to put down a deposit on the Model 3 after it was first introduced in March, expecting that she would be getting some type of compensation from Volkswagen to replace the Jetta. “I was literally at my computer waiting,” she says.

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Douglas Surber, who lives near Tesla headquarters in Orinda, Calif., was also among the first wave of customers to put down a Model 3 deposit. Surber, 58, works in software and owns a 2013 Model S and a 2009 Jetta TDI. “When the Model 3 comes out, that’s what I’m going to want,” he says about replacing his diesel car.

Despite the enthusiasm surrounding the rollout of the Model 3, there are still a number of uncertainties surrounding the car, including whether it will be delivered on schedule and what the final product details will look like, Edmunds’ Caldwell says. However, the deposits are refundable, leaving prospective customers with little risk. “The worst that can happen is that it comes out, you don’t like it, and you buy something else,” she says.

Tesla has had its own set of reputational problems to deal with, earning the attention of the National Highway Traffic Safety Administration for problems with the Model S suspension and its Autopilot semiautonomous driving feature — which was involved in a fatal Model S crash in May. “Today’s automobile is a very complex machine,” says KBB’s Harley. “If you’re an auto maker, you have to cross your ‘Ts’ and dot your ‘Is.’ It isn’t a pleasant environment to be an auto maker.” Tesla didn't respond to a request for comment.

However, the negative press hasn’t deterred prospective Model 3 buyers. “There’s absolutely no comparison between corporate-wide fraud and disagreements about whether Autopilot issues should have been reported,” Darling says. “I love value, and Teslas are profound value.”