The price decline is being driven by two factors. Volkswagen Credit is holding off on selling any vehicles coming off lease until vehicles can be fixed. This in turn is making dealers hesitant to buy Volkswagen diesels at auctions across the nation.
All this news is urging owners to understand the value of their Volkswagen diesel. Private seller activity for Volkswagen diesel vehicles is up 19% on KBB.com and Autotrader.com from last week, compared to 1% for Volkswagen as a whole.
Owners are now questioning what their next move is going to be. Some owners have taken the next step to list their vehicle for sale, Volkswagen diesel listings were up 1% over last week, but others are going to are questioning who is going to want to buy to buy it before it's fixed. Volkswagen is stepping up and trying to help owners, offering $2,000 to owners who turn in a Volkswagen and stick with the brand.
So if you're in this situation, what should you do? We agree with Eric Ibara, director of residual values for Kelley Blue Book, who said, "While early readings suggest that TDI vehicles are being affected by the news, it is possible that they could return to normal levels within a year. This will depend on how Volkswagen handles this crisis and what they announce the fix will be for the U.S. market." Be calm, be patient, and wait to see how this is all going to play out before making any drastic moves.