Wednesday, March 16, 2016

#Dieselgate



#VWDieselgate‬ - We have had a lot of people ask us our thoughts on what impact the TDI Diesel controversy will have on the resale of VW TDIs. If you are not aware, VW recently got caught cheating emission testing equipment on certain TDI models. Our understanding is that when a TDI was hooked up to a machine to check its emissions, the vehicle would recognize a machine and adjust its engine management to reduce its emissions to pass the test. Once removed from the machine, the vehicle was revert to higher emissions. One of the reasons, this may have occurred is because engine performance often comes at the cost of higher emission. Higher performance often equals more pollution. So in this case VW could advertise better performance then they could actually provide inside of emission standards.
We recently had a great conversation with a used car manager of a Volkswagen dealership. What he shared is that they are not able to sell their new TDI vehicles. This is obviously not great for them and not great for people who want to purchase. However it has pushed up the value of low mileage used TDIs. People want them and due to supply and demand the costs of good used TDIs are maintaining their value and even selling for more. This is almost seems to conflict with what one would imagine would happen to the value of goods offered by a company caught in, what some would consider, a scandal.
So if you are looking to sell your low mileage TDI, now might be the time.