Volkswagen has been haunted by the legal and reputation cost from what is viewed as fraud about emissions from its diesel engines. As might be expected, the price consumers will pay for these cars has plummeted. According to research from Kelley Blue Book (KBB), prices for VW diesel models have dropped 16%. And fewer people are shopping for the diesel models.
The trends observed by KBB have to damage VW dealers and current owners more than anyone else. Inventory of diesel models stay on dealer lots, either unsold or sold at discounts that make their sale a financial loss. The price drop affects the owners due to a fall-off in the resale value of their cars. This second issue will trigger owner suits against the huge car company.
The research firm disclosed:
Kelley Blue Book www.kbb.com … report that average auction prices, along with new-car shopping activity on KBB.com, for Volkswagen diesel vehicles have declined four weeks after the diesel emissions issue was announced.
The average auction price for Volkswagen diesel models dropped by nearly 16 percent since the news broke of the emissions crisis. The average auction price for the brand’s gasoline-powered vehicles declined by 2.9 percent.1 On KBB.com, Volkswagen new-car shopping activity for affected TDI models has decreased on average by 2.4 percent
While shopping at KBB is not the same as data reported directly by dealers, it is almost certainly directionally correct.
Because people looking for new or used VW diesels eventually will buy alternatives, other car companies will certainly benefit. These manufacturers and their dealers probably have begun offering their similar vehicles as alternatives with similar mileage and features, which likely will drop demand for VW diesel cars further and continue to negatively affect their prices.
VW’s problems have spread well beyond the company itself, which will add to its problems substantially as the scandal goes forward.
ALSO READ: The 10 Cheapest Cars in America
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
