What to do with the Volkswagen in your driveway
Now isn’t the time to sell as automaker weighs options amid emissions scandal
If you’re driving a diesel-powered four-cylinder Volkswagen, you’re stuck with a fun-to-drive machine that’s belching unhealthy pollutants from its tailpipe.
Until the company figures out how to fix its bogus emissions controls, there isn’t much you can do about your dirty diesel.
Following disclosures that Volkswagen developed software for its two-litre diesel engine that could better control pollutants during testing than in real-world driving, there’s a lot up in the air for owners of Jettas, Golfs, Passats and Beetles as well as Audi’s A3.
Here are some things to consider if you’re thinking of suing or selling, or are unsure of what to do next: Should you sell? Some owners might rush to put the car up for sale. Eric Ibara, senior analyst for Kelley Blue Book, is encouraging them to hang on to their VWs, at least until the company comes up with a fix.
Ibara says the impact on Volkswagen’s resale values may not be known for two or three weeks. The price that dealers agree to pay for vehicles being auctioned this week will be the first indication.
VW diesels traditionally have higher resale values than gasoline counterparts, but the scandal might erode that premium, Ibara says, especially if the fix cuts mileage or impacts their sporty performance.
If repairs are made, history shows there might not be a lasting impact. General Motors’ residual values weren’t affected by ignition switch recalls, and Toyota’s car values returned to normal within a year of an unintended acceleration crisis.
Some owners are hoping for rebates, while a consumer group called on VW to buy back the diesels. Should you sue? Joining a lawsuit against VW is one option for owners, although it likely will take years to get any relief.
At least one Canadian and five U.S. lawsuits have been filed, some alleging the cars’ values will fall because of the emissions-testing scheme.
Consumers could have some success in the courtroom. In 2012, for example, Toyota agreed to pay more than $1 billion (U.S.) to resolve hundreds of lawsuits filed by owners who said their vehicles lost value after the company’s unintended acceleration problems.
Don Marron, 58, a banker from Allentown, Pa., wants Volkswagen to take back his 2012 SportWagen and apply the credit toward a new car. He’d also consider a repair that didn’t compromise performance or fuel economy.
“I’m going to wait and see what they do, but I’m not going to do nothing,” he said.
“It’s just dumb that they did this. How could they think that it wasn’t going to be discovered? What arrogance, what bad judgment.”