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)
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- 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