Drivers of VAG (Volkswagen Audi Group) vehicles are no doubt wondering if they have a car with the emissions cheat device and how it is going to affect them, not only with regard to performace and CO2 emissions but finacially too.
Motor trade professionals seem to be split on whether the emission scandal is going to have an affect on values and although there has been a lot of lawyer talk in the press, it is still unclear whether drivers will be due any form of compensation.
How things stand at the moment
Volkswagen has come clean (no pun intended) and admitted they have been using software in the US to put the vehicle into a different emissions mode once it thought it was under test conditions.
In the US 2009-2015 Volkswagen Golf, Beetle, Jetta and 2014-2015 Passat models had the devices fitted which manipulated CO2 results along with 2009-2015 Audi A3 models.
It is thought in the US that over 500,000 vehicles of the 11 million VAG cars sold worldwide will have been affected, with the group still yet to reveal how many affected vehicles are on the roads in the UK and the rest of europe.
Volkswagen was quickly to react to the news of the devices and has already declared they have put aside £4.7bn to cover costs for recalls in the US, whether these recalls will spread to Europe is yet to be confirmed.
The devices have absolutely no affect on the safety of any of the vehicles affected so drivers can continue to use their vehicles without any concerns.
So will this scandal affect the prices of cars?
Jim Holder of WhatCar magazine said in an interview with the BBC -In the short-term there will be an impact on the value of these cars and their desirability. That is because we do not know where the other 10.5 million cars with these cheat devices are, which has led to an obvious concern there will be some in Europe.
Dylan Setterfield, editor at CAP Black Book – a car valuation guide used by motor dealers in the UK said We do not expect there to be any significant impact on used values in the UK as a direct result
Are owners likely to obtain compensation?
At the moment it is too early to say but lawyers in the UK seem to think it is a strong posibility.
A lawyer “Jacqueline Young” head of the Slater and Gordon law firm said –
“If UK cars are found to contain defeat devices, this would give rise to a claim by car owners and car dealerships who bought VW vehicles on the basis of false information and whose asset has now devalued,”
Shares in the car firm have plumeted since the scandal so it will be interesting to see if and how Volkswagen can recover from such a devatstating error.