VW emissions scandal: uncertainty over used values

The impact on Volkswagen Group cars’ used values as a result of the emissions scandal is divided. Some major used car valuation experts have claimed the trade value of used Volkswagen diesel cars has fallen 3% since details of the scandal surfaced while others have said it is too early to tell.

Glass’s Guide, the motor trade valuation publication, has revealed that in September values on the used market as a whole increased by 2.1%. However, values of used Volkswagens are the same as they were at the start of the month, so, in essence, are 2.1% down.

Diesel models have suffered slightly more. Overall, the trade values of diesel cars are up 2.8% on last month, but the trade values of used Volkswagen diesels are down 0.2%, so they are 3% behind the rest of the used market.

Glass’s head of valuations, Rupert Pontin, has stated it’s clear that the values of Volkswagens are lower than expected and that they will likely continue to be affected by how the company deals with the problem.

However, CAP Automotive has said it is too early for any real impact to be seen, with CAP’s Black Book editor Derren Martin saying: “It is only a week into the crisis and our team of experts has seen no discernible change to values.”

He said that there is some weakness in the second-hand value of the 1.6-litre diesel Golf, but said this could be put down to higher volumes of the car in the used market in recent months.

Martin went on to say that this does not mean that there will not be any drop in values: “We are not discounting there may be some short-term impact on prices across the marques in the Volkswagen Group over the coming weeks, due to the amount of negative media coverage.”

CAP pointed to the last major global recall, surrounding Toyota and Lexus at the end of 2009 and the start of 2010, saying that this had no discernible impact on used values.

Volkswagen has revealed that more than 500,000 of its cars are being recalled in the UK in addition to nearly 400,000 Audis, 77,000 Seats and 132,000 Skodas.

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