Owners will have the option to get the cars fixed or have VW buy them back.
The article says that the estimated cost of buybacks is $7 billion. With 480,000 cars in play, that's an average of $14,000. Clearly they're accounting for depreciation here. I wonder if they're accounting for the dive in price I'm sure these cars have had in the secondary market since the scandal broke.
From what's said here, it's hard to tell if the owners will be screwed over or not.
VW is going to use the value as of September 2015, before the scandal broke. That value is around $14k for a 2012 Golf TDI.
Yesterday, Jalopnik reported an additional $5k compensation on top of the buyback, but I can't find the source anymore; they may have retracted it after the actual details came out. But the NYT article does mention "additional substantial compensation" for those affected, so there will be something extra on top.
I bought a 2012 Golf TDI for $26k, and I think I'll take the buyback partially because I feel wronged, and because I just moved back to SF and owning a car here doesn't make sense. If this scandal hadn't happened, I'd be looking at 13 to 15k on craigslist, so getting more than that from VW itself will definitely satisfy me.
I'm an owner, and while the info is not complete yet, I like where its heading. Honestly, I just want a different car, and not to be punished financially for their behavior. I'll take a buyout and if there's cash above the BB value, I'll be happier still.
This is the conundrum. I'm used to the sight of 45mpg on my dashboard. Passat TDI was kind of my perfect car, so I really don't know what I'll go for next.
The article says that the estimated cost of buybacks is $7 billion. With 480,000 cars in play, that's an average of $14,000. Clearly they're accounting for depreciation here. I wonder if they're accounting for the dive in price I'm sure these cars have had in the secondary market since the scandal broke.
From what's said here, it's hard to tell if the owners will be screwed over or not.