SAN FRANCISCO – Buyer intelligence firm Autolist.com released data just before the Fourth of July holiday that shows that the $14.7 billion settlement for some Volkswagen diesel vehicle ownerswill compensate them “handsomely” for being dragged into what analysts coined as “Dieselgate.”
The study, which is based on more than 37 million data points, described an “optimistic” story for VW owners. Analysts determined nominal vehicle value has decreased an average of $2,017 since the scandal, which is far less than the $5,100 to $10,000 owners will receive in settlement reparations payments alone.
Furthermore, Autolist.com found that expected prices for scandal and non-scandal vehicles have recovered to 4.8 percent and 1.5 percent below expectations, respectively, up from March lows of 7.4 percent and 2.8 percent.
However, despite the price stabilization and potentially rich payout, analysts pointed out that VW vehicles are still not selling at the market rate.
Autolist.com indicated time on market is at record highs, with scandal and non-scandal vehicles at 189 percent and 31 percent above average, respectively.
Autolist.com analysts pointed to brand perception damage and the lack of a viable fix for the scandal-affected vehicles as the primary drivers for the slow used sales.
“So while owners may ultimately have a chance to unload their cars and come out ahead, it may be a little while before a buyer comes along willing to make the purchase,” Autolist.com said.
Additional settlement impact
While dealerships will be handling the major chores if VW diesel vehicle owners want a different model, Diesel Technology Forum executive director Allen Schaeffer explained the impact stemming from another part of the settlement — the $2.7 billion mitigation trust established that’s meant to reduce excess emissions of oxides of nitrogen (NOx).
“Today, the most proven, available opportunity for mitigating excess emissions of NOx comes from the accelerated turnover of older heavy-duty trucks, buses and off-road machines and equipment to newer technology clean diesel models. The newest generation tractor-trailer sized trucks have 95 percent fewer emissions of NOx compared to models built before 2010 while a 2014 model year large construction machine — such as an excavator— yields a 99 percent reduction in NOx emissions relative to a previous generation of equipment,” Schaeffer said.
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