VW will buy back U.S. Diesels

[12,000 RPM]

Because of VW? If anything this is a net flow of $15B to the US economy. Like a tax break for VW owners.

At the expense of what I imagine will be quite a few of VWAG's hundreds of thousands of European employees, as well as its stock price and cash reserves. Another leak in the cracking dam.

[MexicoCityM3]

At the expense of what I imagine will be quite a few of VWAG's hundreds of thousands of European employees, as well as its stock price and cash reserves. Another leak in the cracking dam.

VW will be backstopped by the German government if necessary. And the Germans can do with a little fiscal deficit. A puny 15B wont hurt the Bundesrepublik.

[MrH]

Holy shit.  Just calculated it all.  $10k profit if I flip one of these.  Might have found something to do this weekend

[2o6]

Are you SUUURE? I can't help but feel like there's some catch-22 written in this settlement for people who would do something just like this.

[MrH]

I'll have to read through the eligibility one more time to be sure.  Also, I did some math wrong.  It's not $10k, but still works out to be a nice gain.

Sale price of vehicle: $7,998

Assumed negotiated price: -$7,200
Buyback price: +$12,527
Option adjustment: +$540
Mileage adjustment: -$210

Total: +$5,657

[ifcar]

I'll have to read through the eligibility one more time to be sure.  Also, I did some math wrong.  It's not $10k, but still works out to be a nice gain.

Sale price of vehicle: $7,998

Assumed negotiated price: -$7,200
Buyback price: +$12,527
Option adjustment: +$540
Mileage adjustment: -$210

Total: +$5,657

However, your plan relies on the owner having missed the buyback news.

[MrH]

...or Carmax

[CaminoRacer]

Holy shit.  Just calculated it all.  $10k profit if I flip one of these.  Might have found something to do this weekend

http://cincinnati.craigslist.org/cto/5654378089.html

Would that work?

[MrH]

I saw that too.  Rebuilt title means it's disqualified.

Carmax is my best bet probably.  More expensive, but you stand to make more money off a relatively new one with few miles.  $6,000+ in profit and it's shipped to me

[2o6]

You're not going to find a 2010 TDI for $7K.

[MrH]

I found a 2014 for $16k.  Buyback on that is over $23k.

[2o6]

Idk, I would let the dust clear and settle some more before jumping in. I am almost 300% sure that the concept of people buying and selling back VW diesels came up in these meetings.

[Payman]

Idk, I would let the dust clear and settle some more before jumping in. I am almost 300% sure that the concept of people buying and selling back VW diesels came up in these meetings.

Why would it matter to VW who the $7000 goes to? As long as the car is bought back and removed from the road as per agreement. What's the diff between pre and post announcement in buying a used TDi? If the original owner is oblivious to the buy-back plan...

[Payman]

Lol. Owner sells his TDi. Next day gets the letter from VW outlining the generous buy-back plan. Rage ensues. 

[12,000 RPM]

If people get wise to this, you better get your TDIs now as this could create a secondary scramble.

[MrH]

Imagine when Carmax's entire inventory vanishes in a week or two. 

This might be an even greater Carmax heist than Doug DeMuro's Range Rover warranty discovery.

[CaminoRacer]

I saw that too.  Rebuilt title means it's disqualified.

That's what I figured. If it was a clean title I might not have posted it

[12,000 RPM]

Holy fuck, there are some deals to be had. I just found a 2012 JSW TDI for like $8,500.... minimum payout on those is $19K

Going to have some conversations with wifey tonight

Question now is whether or not dealers are going to start hoarding these to sell back to VW themselves. There HAVE to be stipulations (i.e. you had to own the car before the settlement)... otherwise........................................................ we're going shopping.....

[12,000 RPM]

I knew it.... they are offering lesser/adjusted amounts for people who bought them after the scandal broke.

http://www.thetruthaboutcars.com/2016/06/heres-much-youll-receive-dirty-volkswagen-diesel/

[Raza]

What an overreaction.  GM's ignition design was killing people, and they didn't get anything like this. 

[2o6]

What an overreaction.  GM's ignition design was killing people, and they didn't get anything like this.

Nah - GM had a poor design layered in heaps and heaps of bureaucracy.


VW knowingly cheated the law and sold thousands of cars across the globe based upon advertising that was entirely false.


A more apt comparison would be the Takata airbag scandal, which is probably worse.


The Delta cars ignition seems minute by comparison.

[SJ_GTI]

Nah - GM had a poor design layered in heaps and heaps of bureaucracy.


VW knowingly cheated the law and sold thousands of cars across the globe based upon advertising that was entirely false.


A more apt comparison would be the Takata airbag scandal, which is probably worse.


The Delta cars ignition seems minute by comparison.

I agree the comparison to GM's issue are apples to oranges. It seems to be brought up all the time though.

That being said, I am still astounded at the size of this settlement. That is a gigantic wealth transfer. I am surprised the German government didn't get involved in the negotiations.

[RomanChariot]

Unfortunately, I can't find any information on how they will deal with people who buy them after the announcement date. It looks like previous owners who sold their cars may still be eligible for some money.

I would imagine that someone that bought a car now would still be offered the buy back price since VW still needs to get them off of the road or fix them. Most likely you will either not receive the additional cash payment or receive a reduced cash payment. If you bought at the right price you could probably still drive the car for a year or two and get all of your purchase price back.

[giant_mtb]

They are so fucked man JFC..... net income was only ~11B Euro last year AND Brexit just happened

Buckle your seat belts folks, we're in for another recesion!!!!

Because a foreign company had a recall and is spending $10+b here to fix it?  I don't think that's a recession.  America will not crumble if people don't want to buy as many VWs for the 1 or 2 years it'll take for most people to forget this ever happened.

[MrH]

I knew it.... they are offering lesser/adjusted amounts for people who bought them after the scandal broke.

http://www.thetruthaboutcars.com/2016/06/heres-much-youll-receive-dirty-volkswagen-diesel/

Where does it say that it's less for people who owned after the scandal broke?  And how much less?  I'm not seeing that.

[RomanChariot]

From the TTAC article, 2 paragraphs up from the tables.

"These tables assume that you owned your car when the emissions accusations became public on September 18, 2015 and that you still own it. If you no longer have your car or if you purchased it after September 18, 2015, then you will be offered a lesser amount, assuming you qualify for the settlement."

I can't see anything that says how much less.

[2o6]

Told you

[MrH]

The TTAC article says that, but I can't find anything in the actual info from the department of justice stating that.

[RomanChariot]

Two interesting, but not entirely clear statements from http://www.cand.uscourts.gov/crb/vwmdl/proposed-settlement. The second statement is 2 paragraphs up from the tables just as on the TTAC article. I am still not clear what the settlement will be for someone who buys a car before July 26, 2016. VW is still going to have to do something with those cars.

1. "Because a car may have more than one owner during the relevant period, for those cars that changed hands after September 18, 2015 and during the claims period, the settlement equitably divides the Owner Restitution payment approximately 50/50 between the owner as of September 18, 2015 who later sold the car ("Eligible Seller") and the current owner ("Eligible Owner").  To qualify for an Eligible Seller restitution payment, you must identify yourself with 45 days of the entry of the Preliminary Approval Order.  If preliminary approval is granted by the Court on July 26, 2016 (the date of the preliminary approval hearing), you will have until September 16, 2016 to identify yourself.  Note that if you sell your car after June 28, 2016, you will not be an Eligible Seller (or an Eligible Owner)."

2. "These tables assume that you owned your car when the emissions accusations became public on September 18, 2015 and that you still own it. If you no longer have your car or if you purchased it after September 18, 2015, then you will be offered a lesser amount, assuming you qualify for the settlement."

[93JC]

lol, what a shit show.