Suddenly, it's not so bad being the owner of a Volkswagen TDI “clean diesel” car. The settlement announced this week by VW will reward owners handsomely, according to an analysis by Autolist.
Thousands of U.S. consumers have been stuck with vehicles they assumed were good for the environment. But VW admitted last fall that the onboard computer adjusted the diesel emissions when it sensed an emissions test was taking place.
During the tests, the emissions were reduced to within standards. The rest of the time, the cars gave off emissions well above legal standards.
As a result, VW agreed to a more than $14 billion settlement, requiring it to buy back affected vehicles and terminate leases, as well as pay consumers cash reparations.
After studying the details of the deal, Autolist concludes consumers will come out ahead. The company reports nominal vehicle value has gone down an average of $2,017 because of the diesel emissions cheating scandal.
250% to 500% bonus
Owners, meanwhile, are getting $5,100 to $10,000 settlement reparations payments alone. That's 250% to 500% more than the loss.
At the same time, the anticipated market value of scandal and non-scandal vehicles has recovered to 4.8% and 1.5% below expectations, respectively. That's sharply higher since March.
Despite the recovery, however, it still takes a long time to sell a Volkswagen. Time on the market is up to all time highs, even for cars not involved in the scandal. Autolist.com says brand perception damage and the lack of a real fix for the scandal-affected cars may hurt sales for months to come.
According to Edmunds.com's projections for June auto sales, VW sales are expected to be down only 2.1% from June 2015, before the scandal broke. Even more encouraging for the brand, VW sales are expected to rise 0.4% from May.