VW to buy back some used TDI model from dealers
VW is giving its dealers a helping hand.
In an effort to lessen the financial burden following the company's diesel emissions scandal, Volkswagen has agreed to buy back used examples of its TDI models from dealers at pre-crisis prices.
VW's cheating scandal had the most immediate affect on the company's new TDI models, they were banned for sale altogether by the EPA, but the automaker's used diesel models also suffered. According to Kelley Blue Book, the average auction price of a VW diesel has dropped by 16 percent since the crisis broke.
In order to protect dealers from the plummeting values of used TDI models currently in stock, VW has reportedly agreed to buy back diesel models at pre-crisis prices. VW has yet to make such a plan public, but Automotive News confirmed the program with three different VW dealers.
According to the dealer sources, VW will buy back TDI models that have been in dealer inventory for 60 days or longer. VW is expected to finalize the details of the plan by mid-November.
"We felt several weeks ago that we've got to control the values, and the only way to do that is for VW to step in and prevent them from going to auction,” Alan Brown, general manager of Hendrick Volkswagen Frisco, told Automotive News.
Although obviously good news for dealers with a glut of undesirable TDI models in stock, the plans should also benefit owners of TDI models as those vehicle should now be worth more on trade-in. That fact could come in handy as VW is widely expected to offer current TDI owners deep discounts on the company's latest gas-powered vehicles.
Photo by Byron Hurd.