As news of the Volkswagen emissions scandal continues to dominate headlines, new data from Autotrader shows that the issue is having a direct impact in the marketplace.
Since news broke in early September that VW diesel vehicles did not meet US emissions standards, the average list price for VW vehicles for sale on Autotrader has declined, along with shopping activity.
The average list price for VW vehicles dropped by US$271 AUD$374, since the story broke.
The average price for VW diesel vehicles declined 3%, or about US$711. The VW Beetle diesel and Jetta diesel saw the most significant declines; both showed average list prices decline by more than 4% or around US$1110 and US$797 respectively.
During that same period, list prices for diesel vehicles overall rose 0.2%, or around US$227, and the average listing price for all vehicles listed on Autotrader was essentially flat.
“When you consider the fact that there are more than 100,000 VW vehicles for sale on Autotrader right now, a price shift of this magnitude in just over a month is significant,” says Autotrader senior analyst Michelle Krebs.
“It demonstrates the uphill battle the brand faces to regain the trust of consumers, and the challenge this presents for dealers.”
Shopper interest data – defined by how many Autotrader visitors click on a listing of a car for sale – also shows trouble for the VW brand. Shopper interest in VW vehicles dropped 3% since the scandal broke, with the most significant declines noticed on non-diesel variants of the Golf (down 11%), Beetle, (down 8%) and Jetta (down nearly 8%).
Interest in the diesel variants of the Passat and Jetta has actually gone up (7% and nearly 3% respectively), which Krebs attributes to a combination of owners curious about the current listing prices and bargain hunters seeking a deal.
The impact hasn’t been limited to the VW brand – sister brand Audi has also seen list price and shopping declines.
While the average list price for Audi vehicles listed for sale on Autotrader declined slightly (down $383 or nearly 1%), the list price for the diesel variant of the A3 dropped by more than $1750 or nearly 6%.
Shopper interest in Audi vehicles overall was down just over 3%, while interest in the diesel A3 plunged 17%. Shopper interest in non-diesel A3s declined just over 4 percent, and average list price dipped slightly by $155 or around a half percent.
“Volkswagen’s price declines could be temporary as often is the case when an automaker has a problem,” says Krebs.
“The outcome largely depends on how Volkswagen handles the situation. Specifically, what it does to make help current owners regarding the value of their vehicles, how it supports dealers and the immediate steps they take to rebuild shopper confidence in the brand.”
Over the weekend, Volkswagen revealed that it will offer incentives for VW owners to buy new vehicles which would help buoy sales figures and take pressure off VW dealerships to implement fixes quickly.
The special offers may focus on the owners of vehicles with 1.6-litre diesel engines, which require costly hardware upgrades rather than just software fixes, sources at Volkswagen and VW dealerships said, according to German news agency DPA reported on Sunday.
However, the offer would be only available in Germany, where around 2.4 million cars with the cheating software were sold.
AutoTalk Australia approached Volkswagen Australia for comments for this article but the carmaker declined to comment at the time of publishing.
Join the conversation