Volkswagen diesel owners in the US are facing a conundrum – the resale value of their vehicles drops by the day but they are unwilling or unable to sell their polluting models as they also lack information on what solutions may be in store.
A month has passed since German automaker Volkswagen AG acknowledged the accusations brought by the US Environmental Protection Agency that it had purposely cheated on diesel emissions tests. And so far no concrete answers have been delivered on how the group would compensate owners or how dealers should treat them. The company announced it would deliver a fix to almost half a million cars from model years 2009-2015 in January, but also said earlier models would need to undergo some hardware modifications. Auto industry consultant Edmunds.com recently announced the price of used VW diesel autos sold at auction by dealers to other dealers had gone down 6.5 percent between September 1 and October 9. After September 18, when the scandal broke out, the average price of the cars slid from $11,319 to $10,586.
That’s in stark contrast to the robust US used-car quotations, which soared 7.6 percent year-over-year during the second quarter. “The drop reflects a lot of the uncertainty and speculation that’s out there,” commented Edmunds.com analyst Jessica Caldwell. Car-buying website TrueCar has also pointed out the searches for VE diesel cars recessed by 57 percent since the scandal started last month. Lawmakers and regulators around the world are now seeking answers on how the cheating was done by the largest carmaker in Europe and how it will be punished, as well as how it will make amends.