Volkswagen to Pay More Than $10 Billion to Settle Emissions Claims (Updated)

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BUYBACKS and LEASE TERMINATIONS FOR OWNERS

Owners who choose to let VW buy back their cars will be paid the "Clean Trade-In" value established by the National Automobile Dealers Association (NADA) as of September 2015, before the scandal broke.

That amount will be adjusted to reflect options fitted to the vehicle and mileage accrued.

Some owners will be able to have their car-loan obligations forgiven or their leases terminated without penalty.

Buybacks could start as early as this fall, or about a year after the scandal became public.

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APPROVED EMISSIONS MODIFICATIONS TO CARS NOT SOLD BACK

If owners and lessees of the affected vehicles prefer, they can wait to see whether modifications are approved to bring their cars into compliance with emissions regulations.

The chances of that happening vary with the vehicle, and are probably close to zero for the 325,000 vehicles without a Selective Catalytic Reduction (urea injection) after-treatment system fitted.

Those vehicles include all 2009-2014 Volkswagen models except the 2012-2014 Passat TDI, and the 2009-2013 Audi TDI.

he Passat TDIs and all 2015 models from VW and Audi may be fixable with modifications to their SCR systems, but the effects on performance and fuel economy are not known at this time—and won't be until any such fixes are approved by the EPA and CARB.

The modifications, which would be free, would include extended warranty terms and "lemon law" protections in states that have them.

If modifications are not approved for specific vehicles, owners can still choose to take the buyback.

It is likely that such an approval process will take considerable time, as the agencies are likely to be very, very scrupulous in inspecting the operation of the modified engines under all possible real-world circumstances.

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CASH PAYMENTS TO OWNERS (separate from Buyback/Modification choice)

The payment to owners who agree to participate in the settlement of the class-action suit is on top of, and entirely separate from, the buyback-or-modify decision.

Owners of the affected 2.0-liter diesel cars as of September 18, 2015, will be offered between $5,100 and $10,000.

The amount is established by a detailed set of calculations specified by the settlement agreement, and it cannot be reduced by lawyers' fees or other costs, which will be paid by Volkswagen.

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VW will pay you the trade-in value of the car as of September 2015, before VW admitted it rigged the cars to pass emissions tests. Prices will range from $12,475 for a 2009 VW Jetta sedan to $44,176 for a 2015 Audi A3 TDI Prestige. You will get the most generous book value, and the condition of the car won’t matter. You may also have the option to have VW pay off your car loan.

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