QuickBizBreak by david weaver

Take a quick break from your biz to ponder new ideas and strategies that will turbocharge your business.

Great Time to Purchase a VW Diesel Automobile

Posted by QuickBizBreak on October 13, 2015

I’m sure most of you have heard by now about the VW diesel emissions scandal. VW admitted to purposely rigging diesel engines to falsify emissions testing results so that they could deliver cars with better gas mileage and performance and not add the technology required to meet the current diesel emissions standards. According to a recent article by auto dealer advisor and valuation expert M.D. Johnson, Inc., the decision by VW to add technology costing about 300 euros per vehicle was offset by the billions in profits from selling vehicles with better performance numbers. The article notes that while greed and a simple cost/benefit analysis by the corporation led to this decision, keep in mind that ‘GM, Ford, and Honda have all paid fines for utilizing emissions-defeat devices in prior production vehicles’. Until U.S. laws hold executives personally liable for such decisions backed up by criminal charges, we may well expect this type of behavior.

Something else from this article caught my attention, however: ‘Currently VW diesel lease returns are being sold at auction for 50% of their previous wholesale/trade-in pricing‘. Let’s face it, VW diesel cars are at the moment tainted. But why would anyone want to purchase a vehicle that spews up to 40 times the legal emissions limit for nitrogen oxides (NOx)? Certainly the EPA will require a fix that is installed at the manufacturer’s expense and according to testing by Consumer Reports, the diesels with emissions working correctly reduces 0-60 performance by only .2 to .6 seconds and fuel economy by only 3 to 4 miles per gallon, a reduction of 5 – 10 percent.

VW and Audi small diesels are great performers and if you like these vehicles and were considering purchasing one up until this recent event, you may want to move ahead. Dealers cannot currently sell new diesel vehicles until a fix is determined and retrofitted but you can certainly purchase used from individuals and maybe even from dealers, especially at tremendous discounts.

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