Cars and Drivers

What Will Volkswagen Pay to Buy Back Customers' Cars?

Douglas A. McIntyre

Published: January 29, 2016 6:59 am

Last Updated: January 13, 2020 2:23 pm

Volkswagen may buy back diesel-powered cars that have emissions problems and were sold in the United States. The New York Times reports this could be as many as 525,000 vehicles.

To avoid a growing number of lawsuits caused by the emissions scandal, VW has the challenge of paying enough for the cars to keep owners from believing they have been cheated a second time.

Naturally, the prices of these diesels have dropped sharply because it is hard to sell a car that has this major flaw. Although the evidence is anecdotal, the TDI diesels have lost much more of their value than gasoline-powered engine versions of the same models.

Therein lies VW’s problem. Does it pay owners what their cars are worth if they were gas-powered versions? Or do they pay owners the prices to which the diesel versions have fallen on the open market? If it is the latter, the chances that VW will face more suits are almost certain.

It may be that VW will have to turn to an outside research firm, or other set of experts, to set the buyback prices. That by itself could lengthen the process. Even if VW offers to buy the cars back, the road to satisfying these customers is dangerous and tortured.