Boreas |
09-24-2015 03:53 PM |
Quote:
Originally Posted by finnbow
(Post 286660)
I'm thinking buy-back (I believe I read somewhere that VW's announced write-down corresponds to the projected cost of a buy-back program). If it costs $6-7k per vehicle to retrofit (on some cars with residual value not much greater) and it doesn't make much sense. Moreover, they may have problems designing a retrofit into these small cars (which likely contributed to the subterfuge to begin with).
The hitch will be whether VW is forced to buy them back at their depreciated value before or after the news broke (the news itself likely devalued the cars significantly). You can bet that VW will want the latter. You can bet there will be folks who love their cars and its (illegally derived) efficiency and performance who will put up a stink about getting $10-12K for a car they bought 4-5 years ago for $25k.
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They may indeed want that but I doubt they'd have the balls to ask for it.
The only hit that buyers of the TCIs are in for is the complete disappearance of the resale value of their cars. The owners drove cars that polluted the atmosphere but that didn't negatively affect the operating expense. In fact, it can be argued that it reduced it by improving fuel economy.
I think the cars' Blue Book value prior to the scandal, probably trade-in rather than wholesale or retail, should be the basis for any buyback program. Perhaps there ought to be some premium attached to the value, say 20%, to cover the buyers' inconvenience and perhaps every car should be valued at "clean book" but nothing extreme. This should no more be a bonanza for the owners than it should be a ripoff of them.
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