Quick Facts: VW's $15B Settlement
This week, Volkswagen agreed to pay about $15 billion to begin rectifying the diesel emissions scandal. There are still some details that need to be ironed out, but Consumer Reports has a nice summary of everything so far. I went ahead and highlighted the key facts below:
- VW will buyback, terminate leases, or fix affected vehicles.
- Covers 475,000 vehicles that contain 2.0 liter diesel engines
- Settlement DOES NOT cover 87,000 vehicles containing 3.0 liter diesel engines (those will be decided in a separate settlement)
- 2013-2015 VW Beetle
- 2010-2015 VW Golf
- 2009-2015 VW Jetta
- 2012-2015 VW Passat
- 2010-2013; 2015 Audi A3
Buyback & Lease Termination Options
- VW will buy back the vehicle at retail replacement value or higher (between $12,500 and $44,000 depending on model, mileage, etc)
- If the vehicle is leased, VW will offer a full termination as soon as vehicle is returned to dealer.
- VW will pay off any third-party loans, up to 130% of the amount the consumer is entitled under the buyback (this is to help cover anybody that is upside down on their loan)
- Buyback and lease termination offers will be available 15 days after settlement has been approved, and will remain open for at least 2 years.
- Fixes for the vehicles have not been ironed out yet. The remedy must be approved by the EPA prior to being made available to owners.
- VW is expected to announce fix options starting in November.
- If you choose to have your vehicle fixed, you will also receive between $5,000 and $10,000 for diminished value. (keep in mind the vehicle will have lower performance characteristics such as lower mpg and engine power)
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- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid