Business

Resale values falling for Volkswagen diesels

Posted October 06, 2015 7:00 am

The Associated Press

DETROIT (AP) - Resale values are falling for Volkswagen diesels.

Kelley Blue Book says the average resale value of Volkswagens with two-liter diesel engines is down 13 percent since mid-September, when VW admitted it cheated on U.S. emissions tests using software installed on 11 million diesels worldwide.

Used car values often drop in the fall, since demand for them is stronger in the summer. But VW's diesel decline is unusually large. The price of gas-powered Volkswagens dropped 2 percent in the same period.

Kelley Blue Book calculated the average sale price of 2009-2015 VW diesels at dealer auctions between Sept. 1 and Oct. 1.

KBB residual value consultant Eric Ibara says past recalls indicate VW's residual values could return to normal by next year if VW fixes the problem and customers are satisfied.

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