The settlement for Volkswagen diesel models affected by the emissions scandal is in the process of being finalized. With the final approval only a few weeks away, we wanted t provide you with the latest information regarding the details of the settlement. Florin Stanciu, New Car Sales Manager for Yorkdale Volkswagen, says:
The Canadian settlement is expected to be approved in ON and QC courts by the end of March. Once it's approved VW will update the spreadsheets on VWCanadasettlement.ca to reflect accurate information. This process is expected to take approx. 3 weeks so sometime in the 3rd week of April customers can log in and get accurate information for all available options. They will then be prompted to select the option of their choice and can select an appointment at the dealership of their choice to finalize the settlement. The earliest appointments will be available min. 3 weeks later (starting around the 3rd week of May) to allow VW to prepare everything for the settlement.
The options are as follows:
- Keep the car and fix it; customers will receive a cash settlement and no charge fix when available. 2015 models have an approved 2 stage fix; first stage is available now, second stage is to be completed in 2018. Settlement moneys will be paid out half upon completion of stage one and second half upon completion of stage two. Generations 1 and 2 do not have an approved fix yet.
- Trade-in the vehicle; customers receive a guaranteed trade value based on the CBB value of the car from September 2015, prior to the emission announcement, with adjustment for current mileage. If they trade in the vehicle at VW or Audi they will also receive the tax savings on the vehicle, but the tax break will only be based on the current CBB value. In addition to the guaranteed trade-in value, customers will also receive a cash amount.
- Sell the vehicle back to VW. Same guaranteed value (CBB from Sept 2015 with adjustment for mileage) + a cash amount.
- Return leased vehicles before the term without having to pay the remaining payments. Customers are still responsible for returning the vehicle within the mileage allowance and within the contract stipulations for wear and year. Customers will receive a cash amount.
If a customer selects to trade in or sell the car back to VW they will receive the same guaranteed value now at the end of 2018. The only difference will be the adjustment for the mileage but I don't expect that it will be substantial unless the kms are much higher when turning in the vehicle.Also, if no approved fix is available by the end of 2018 VW will buy-back all the affected vehicles.If customers don't do anything and assuming that no fix becomes available by the 2018 deadline they will get the same value as they would get today (minus mileage adjustment) - so they will in essence get free (or very cheap) driving between now and whenever they decide to trade-in or sell back, or when VW will buy back their car.
Check back with us in a few weeks time. We'll be sure to keep all of our readers and members up to date on the latest information regarding the settlement.