VW values ‘marginally affected’ by emissions
Trade values of Volkswagen used cars have so far only been marginally affected by the news of last week’s emissions scandal, according to figures from Glass’s.
These are the key findings from data released today covering more than 78,000 observations:
- Trade values of all Volkswagen used cars in the Glass’s database today are the same as they were at the beginning of September. However, the overall used car market has seen an increase of 2.1% during the same period – meaning that the value of the VWs have effectively fallen by 2.1%.
- Looking at Volkswagen diesel used cars only, there was a 0.2% drop in values over the same period. However, the overall market in the same period has risen by 2.8%, meaning that the VW’s are trailing the market by 3%.
- Values of Golf diesels likely to be fitted with the Euro 5 engines affected by the scandal fell by 3.7% over the month, whereas the rest of its direct competition fell by 3.2%, meaning that these models are relatively speaking 0.5% lower than expected.
Rupert Pontin, head of valuations, said that it was clear that the values of Volkswagens were lower than expected and this was very likely to be the result of the emissions scandal.
He explained, ‘This is still a fluid situation and, we believe, will be very much affected on an ongoing basis by how Volkswagen deal with the problems facing them.’
‘We are still waiting to find out the full extent of the issue in the UK. Dealers and customers are not in a position to make a clear judgement about how they feel about Volkswagen as a company and whether they will be prepared to continue to buy their cars going forward.’
‘In our opinion, we may yet see further value changes as VW release more information. The way in which they do this, and the manner in which they support their dealer network and customers, will heavily impact on overall perception of the brand.’
‘We are aware that a number of key trade buyers are viewing Volkswagen conservatively for the time being, although it is fair to say that there are also others who are less concerned and are essentially standing by the brand and its products.’
Glass’s has not yet been able to analyse sufficient retail data to present a picture of what is happening to screen prices of cars.
Rupert added, ‘Our market sources would lead us to believe that there has been a minimal change in asking prices although there are various anecdotal reports of reduced retail interest, lower used sale activity and a reluctance for the trade to take part-exchanges.’