The unprecedented vehicle buyback of Volkswagen TDIs has spawned a cottage industry in which some enterprising dealers and individuals have begun to acquire scandal-affected vehicles en masse. Technically, it is not illegal for someone to buy multiple TDI cars and sell them back to Volkswagen. What would raise some red flags for the Federal Trade Commission is if the vehicles were acquired deceptively.
Why are people trying to amass the diesel-powered VWs" Because Volkswagen is paying generously for the vehicles: pre-September 2015 prices plus cash payouts ranging from about $5100 to $10,000, as part of its settlement in the diesel emissions scandal. If you spot someone selling a low-priced TDI affected by the buyback, you’re likely to turn a profit by buying it. ?The FTC takes deceptive practices associated with the settlement very seriously,? an attorney for the agency told Car and Driver, adding that it is monitoring the buyback process.
A New Car for $22 a Month
Consider this: A brand-new 2011 Volkswagen Jetta TDI cost about $18,715 when it was new in 2010. Normally, that Jetta would have depreciated to a trade-in value of about $7000 by now. But you can sell it back to Volkswagen regardless of its wear and tear?it just needs to be in running condition?and get about $17,100 for it.
So, monetarily speaking, scandal-affected TDI owners have not fared so badly. Using those above numbers, if the owner of the 2011 VW Jetta TDI were to sell the car back to the...