The real concern: Exactly what will VW’s cheating scandal cost car owners?Today, let’s play financial voyeur and try to find out a few important numbers involving Volkswagen. No, I’m not discussing how much Volkswagen’s decision to cheat on the tests of 11 million of its diesel automobiles will certainly cost the company– that’s been evaluated to death. Rather, I wish to see if we can figure out how huge the monetary hit is for Volkswagen’s innocent victims: the people who have the 11 million cars. Unless VW can develop an amazing fix that lets the afflicted automobiles meet pollution requirements without diminishing mileage and performance– fat chance of that occurring!– the cars’owners will certainly take a monetary hit. How so? Since the automobiles’degraded efficiency and degraded image will certainly knock billions of dollars off the automobiles’ value in the resale and trade-in markets. And that will come out of the owners’ pockets. There’s no chance to put a tough number on that loss yet– enough info is drifting around to make it possible to take some educated guesses. Repeat, guesses. But guesses based upon realities. And guesses that produce some large numbers. So let’s use the one set of difficult numbers we have– Kelley Directory’s statistics covering the marketplace value of the 483,000 U.S. automobiles affected by VW’s cheating. [The EPA closed the lab that might have captured VW years ago] Kelley enthusiastically supplied me with the pre-scandal value of the affected U.S. automobiles. Total approximated value:$7.3 billion. These values range from$8,409 each for 2009 Jettas to$22,000 for 2015 and 2016 A3s, Beetles, Golfs and Jettas. A 15 percent decline in the marketplace value of those cars– which doesn’t appear like a lot to me, offered the circumstances– would diminish their collective value by $1 billion. Kelley says it’s method prematurely to inform just how much effect, if any, the scandal will carry these U.S. vehicles’ retail values. That’s because so many things, including how VW proposes to fix the problem, are unclear, … See all stories on this subject Vehicle Tech 101: The Atkinson Cycle engine explained Kindly disable any ad-blocker you are using in your browser. The Atkinson Cycle engine may be under your vehicle’s hood and you ‘d never ever understand. Brian Cooley discusses the technology and why it’s becoming a pillar in late model, efficient automobiles … See all stories on this topic
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