Consumer Auto – July 2016
What the VW Emissions Settlement Means to Diesel Car Consumers
In June, VW agreed to a $14.7 billion settlement for defrauding consumers and violating emissions standards for 475,000 2009-2015 diesel vehicles sold and leased in this country. The proposed settlement requires VW to spend up to $10.03 billion to compensate consumers through buyback offers, lease terminations, and loan forgiveness. Vehicles affected include TDI diesel versions of 2013-2015 Beetles, 2010-2015 Golfs, 2009-2015 Jettas, 2012-2015 Passats and Audi A3s from 2010-2013 and 2015.
If a federal judge approves the proposed settlement, as expected, here’s what it will offer:
• Buyback Option: VW will offer to buyback all affected vehicles for their fair market value as of Sept. 2015 (just before the emissions cheating scandal became public). Owners will receive from $12,500 to $44,000 for their cars depending on the model, mileage, year, and features of their cars.
• Loan Forgiveness: Car owners with loans held by VW will be eligible to have those loans forgiven. If you have a loan on an affected vehicle from another bank or finance company, VW will pay up to 130% of the buyback value of the car toward defraying the loan (so if the buyback value of your vehicle is $20,000, VW will pay off up to $26,000 of your loan.)
• Repairing the vehicle: Owners who want to keep their cars may be able to – if VW can find an emissions fix that the US EPA and the California Air Resources Board approve. Vehicles will have to be modified by a VW-approved mechanic to meet emissions standards. Consumers who have their cars repaired will also be eligible for financial compensation for the diminished value of their cars as a result of VW’s fraud.
• Lease Terminations: If you’ve leased an affected vehicle, you have the right to terminate your lease early (with no termination fee) or if VW is able to find a fix, to keep the car and have it fixed.
• Buy or Sell a VW: If you bought or sold an affected used VW between Sept. 18, 2015 and June 26, 2016, you may also be eligible for compensation for the diminished value of the car, with compensation to be split between the buyer and seller.
Eligible consumers should receive notice from VW in Fall 2016. Compensation could begin to be available as early as Oct. 2016.
To look up whether your car is affected, read more documents on the settlement and get updates on the status of the settlement, you can see VW’s official settlement web page here: https://www.vwcourtsettlement.com/en/