Own a VW? Here are your options
Volkswagen directors and shareholders may be dumbfounded over company executives admitting to using clandestine software to cheat emissions tests in 11-million diesel vehicles. But owners of a VW Jetta, Golf, Passat, Beetle, or Audi A3 (all vehicles equipped with direct diesel engines) are surely just as confused, wondering what becomes of that suddenly scandalous vehicle in their driveway. The Financial Post’s Robert Liwanag offers a quick rundown of the possibilities. Will I be able to return my car for a refund? To put it bluntly: No. Volkswagen Canada is still revising its return policies in response to the scandal. Staff at Toronto’s Don Valley Volkswagen said that so far the only customers who have come into the dealership looking to return their cars were buyers who had made their purchase days before the scandal broke. They didn’t get refunds, either. Will I be able to sue Volkswagen?
Vo lkswagen owners who think they can sue their dealerships had better think twice, warns Tony Merchant, senior counsel at Merchant Law Group LLP. His law firm has currently filed class action claims against Volkswagen in Ontario, B.C. and Quebec.
“If an individual sued in a small claims court and said, ‘I bought this vehicle for $37,000 last week before the news broke and I want my money back,’ I don’t think you can succeed,” said Merchant in an interview. “It’s important to distinguish between not getting what you bargained for and the details of what you bargained for, so at most, what you’ll get back is the loss of (resale) value on your car.” How much resale value will the car lose?
Joe McCabe, president of Pennsylvania-based Auto -Forecast Solutions, says it depends on how the car’s performance changes after it’s been recalled and the necessary emissions controls have been implemented. Specifically, he says, it all hinges on three things:
fuel economy, horsepower and torque.
“What is going to be required to make the proper fixes — whether it’s a simple fix or a hardware component — and based on that, how will the level of performance and functionality in the vehicles be affected?” he said. “Until those are determined, it’s hard to place a value on the vehicle.”
When asked whether the price of pre-owned VWs has been marked down since the scandal broke, a manager answering the phone at Dynasty Auto Selection, a used car dealership in Toronto, said “no, we haven’t.” He then hung up.
What if I don’t want my car fixed? Since the emissions cheat was clearly used to give Volkswagen cars more pep and better fuel efficiency, then uncheating them will make them less peppy and efficient. So you wouldn’t be crazy to resist letting your dealer ruin the great drive you actually paid a little extra for (you would, however, continue emitting just as much nitrogen oxide as you have been all along, but didn’t know it.)
Governments can force automakers to recall cars, but they have no way to force owners to co-operate. So you can keep your cheating software as long as you like. Or at least until it comes time to renew your registration: Many provinces require occasional emissions testing for older cars, and regulators could insist that your VW or Audi have its defeat device removed before testing, and being permitted again on the road.