VW trade values have fallen 3%
Trade values of Volkswagen vehicles have fallen 3 per cent following news of the emissions scandal, according to figures from Glass’s. The figures may be marginal when considered in detail, but they go against the flow of the market.
Trade values of all Volkswagen used cars in the Glass’s database are currently the same as they were at the beginning of September. However, the overall used car market has seen an increase of 2.1 per cent during the same period – meaning that the value of the VWs have effectively fallen by 2.1 per cent.
Looking at Volkswagen diesel used cars only, there was a 0.2 per cent drop in values over the same period. However, the overall market in the same period has risen by 2.8 per cent, meaning that the VW’s are trailing the market by 3 per cent.
Golf diesels likely to be fitted with the Euro 5 engines affected by the scandal fell further (by 3.7 per cent over the month), whereas the rest of its direct competition fell by 3.2 per cent, meaning that these models are relatively speaking just 0.5 per cent lower than expected.
Rupert Pontin, head of valuations at Glass’s said: “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.
Glass’s reports that it has “not yet been able to analyse sufficient retail data to present a picture of what is happening to screen prices of cars”, however, Pontin 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.”