My husband had a Greasecar conversion kit on his '94 Suburban. It doesn't run biodiesel; it runs on filtered waste vegetable oil. Actually, we can switch from regular diesel to a different tank that has the veggie oil, so if you don't have any veggie it still runs fine on diesel. We've had good success with it now that we have the filtering process down.
As you can see above, using veggie is going to void your warranty for any fuel-related problems. However, there are several people on the Greasecar site (
www.greasecar.com) that have converted new VW's anyway. I guess it's sort of a risk/benefit analysis you have to make for yourself. The Greasecar site has a little section on emissions also.
For saving money it is great--my husband drives 90 miles a day, 5 to 6 days a week. We use about 45 to 50 gallons of veggie oil a week, which costs less than $2 to filter. So our savings have been running about $500 a month. It takes my husband about an hour each week to collect from the restaurants and another hour to filter it. It is messy as we have a large scale operation.
Whether it would be worth it with a VW is hard to say, especially if you're going to void a warranty. You would have less time into filtering and could probably use your kitchen without too much mess. But you wouldn't save as much, either. I like the idea of recycling waste oil, but I don't know if it's really worth it if you're using a small amount of fuel.
On the other hand, if you're looking at a VW that is already out of warranty, than your risk is less and veggie oil might be a better option.
For the record, we've had no veggie related problems with our engine.
HTH,
Julie