Volkswagen Gives Dealers Price Guarantee on Used Diesel Vehicles
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.
SEE ALSO: Volkswagen Group Lost Tons of Money Last Quarter
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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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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So why is it that the pre-owned diesel models, that are affected of the time frame, on dealer lots when they should not be available for sale at all? Is that what I just understood? IMO, they should not be on sale at all if they are made around the same time during the fiasco.