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Scandal-hit VW trade values drop just 3%

America 2015_golf_tdi_4032
Emissions scandal: An American Golf TDI.

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30 September 2015

 

FOLLOWING the Volkswagen cars emissions scandal, Glass’s reports that used VW trade values have so far only been marginally affected.

Glass’s reports that from 78,000 points of data:

  • Trade values of all Volkswagen used cars today are the same as they were at the beginning of September. However, the overall used car market has seen an increase of 2.1% during the same period – meaning that the value of the VWs have effectively fallen by 2.1%.
  • Looking at Volkswagen diesel used cars only, there was a 0.2% drop in values over the same period. However, the overall market in the same period has risen by 2.8%, meaning that the VW’s are trailing the market by 3%.
  • Values of Golf diesels likely to be fitted with the Euro 5 engines affected by the scandal fell by 3.7% over the month, whereas the rest of its direct competition fell by 3.2%, meaning that these models are relatively speaking 0.5% lower than expected.

Commenting, Rupert Pontin, head of valuations, said: “This is still a fluid situation and, we believe, will be very much affected on an ongoing basis by how Volkswagen deal with the problems facing them.

“We are still waiting to find out the full extent of the issue in the UK. Dealers and customers are not in a position to make a clear judgement about how they feel about Volkswagen as a company and whether they will be prepared to continue to buy their cars going forward.

“In our opinion, we may yet see further value changes as VW release more information. The way in which they do this, and the manner in which they support their dealer network and customers, will heavily impact on overall perception of the brand.

“We are aware that a number of key trade buyers are viewing Volkswagen conservatively for the time being, although it is fair to say that there are also others who are less concerned and are essentially standing by the brand and its products.”

We spoke to one leading broker, who said orders remained strong on all VW products, and that initial calls about the issue had subsided.

The broker said that future leasing prices would be led much by the positioning of Volkswagen Financial Services and whether the group’s financing arm finds the cost of borrowing money increases.

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