I did my Cash For Clunkers deal over the weekend also. And i too decided against the VW TDI Sportwagon after the one i wanted was $27500 MSRP and nobody would budge. So i went with a similar equipped 09 Ford Escape.
The Escape was @$25,500 MSRP
Invoice was @$24,042
Final Negotiated price was $23,200 so i got $800 under invoice.
$2500 Rebate from Ford
$4500 Clunker Cash (traded 94 Aerostar worth $100)
Then i traded in my g/f's 05 Malibu which had a book value of $4400 in good condition (its not)
$5200 i got them to pay me for that.
So i left paying about $12,000 cash for my new Escape....
Not a bad deal and its really solid, much better than i expected.