Volkswagen of America is offering to buy back some used vehicles from its U.S. dealerships at pre-crisis prices.
According to three dealerships that have been notified of the plan, the German automaker will guarantee the value of certified pre-owned and other used Volkswagen models equipped with the affected 2.0-liter diesel engines that cheated on EPA emissions tests. Those vehicles in dealer inventory will have their prices set at what was seen before September 18 and if any of those vehicles stay in dealer inventory for 60 days or longer, Volkswagen will buy them back from the dealers at those set prices.
According to a memo sent to dealers, the program will roll out in three phases, starting with an inventory of diesel vehicles on dealership lots so that Volkswagen can determine which ones are eligible for the program. The first step is expected to be complete by November 13 and Volkswagen will detail the following phases over the next two weeks.
The German automaker hopes this will help set a pricing floor for used diesel vehicles, which have seen their wholesale and auction sales volume drop over the past month. By offering dealer buybacks, retailers will have certainty that used diesel vehicles sitting on their lots won’t become worthless while they wait for Volkswagen to implement a fix.
[Source: Automotive News]
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