2.0-Liter Diesel Prices

Wholesale auction prices of 2.0-liter diesel engine Volkswagen Jettas and Passats — the most voluminous of those involved in the automaker’s well-publicized emissions violation issue — have fallen by approximately 13% to 16% since the U.S. Environmental Protection Agency (EPA) issued its initial notice of violation (NOV) mid-September. By comparison, prices for gas powered Jettas and Passats have fallen by a lesser 6% to 10% over the period. Gasoline-powered Jetta and Passat losses are roughly 2- to 5-percentage points more than those that have occurred for their respective segments, while diesel engine losses are 9- to 12-points worse. 

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That established, depreciation for the Jetta and Passat appears to be leveling off. This suggests any material change in VW prices from this point forward will be largely dependent on the automaker’s official remedy to bring affected vehicles into compliance. VW prices will likely suffer more should a given solution materially impact performance and fuel economy. Conversely, the outcome would be more positive it the fix were to address the issue without unduly compromising either area.

3.0-Liter Diesel Violations

The EPA issued a second notice of violation to Volkswagen on Nov. 2 alleging the company installed defeat device software on vehicles equipped with 3.0-liter diesel engines. Per the EPA, VW officials admitted to using the undisclosed software on approximately 85,000 vehicles equipped with 3.0-liter diesel engines sold in the U.S. beginning with the 2009 model year. Affected models include the Audi Q5 and Q7, Porsche Cayenne and VW Touareg utilities, as well as Audi’s A6, A7 and A8 luxury cars.  The respective brands have since issued a stop-sale order for affected models, both new and certified pre-owned, until a government-approved fix can be implemented.

While auction sales volume is exceptionally low, VW’s latest admission doesn’t appear to have impacted prices of its affected models, as prices of both 3.0-liter diesel and gas variants haven’t deviated noticeably from their pre-NOV trend.