Buyers with less than perfect credit are sure to find some new and used car bargains if they plan on shopping the VW brand in the next few months.
Volkswagen Diesel Drama
On Friday, September 18, 2015, the Environmental Protection Agency went public and accused Volkswagen of violating the federal Clean Air Act after VW admitted to programming software so an engine management system would switch to a cleaner test mode during emissions testing. This much we know.
What we don't know yet is how this will eventually affect the resale value of hundreds of thousands of Volkswagen models – both diesel and gasoline-powered. That's because even though the current investigation only covers 2.0-liter four-cylinder turbo diesel engines, consumer confidence in the entire VW brand is also likely to take a hit.
But a recent survey by AutoPacific gives us a glimpse of what might happen.
AutoPacific, an automotive marketing and product-consulting firm based in Tustin, California, recently surveyed over 500 vehicle owners to capture their "perception of Volkswagen." Here are some of the results:
- Only 25% of vehicle owners have a positive opinion of Volkswagen, compared to 75% prior to hearing the news.
- 64% of survey respondents say that in light of the issue, they do not trust Volkswagen.
- Although 80% of respondents say the VW issue is a "big deal," 44% think it's less serious than recent GM problems and 42% think it's less serious than recent Toyota problems.
Buy a Used Volkswagen Now
So, with the VW cheating scandal in top gear, now might be a really good time for credit-challenged car buyers to score a great deal on a used Volkswagen. Here's why:
- Volkswagen models across the board, but especially diesels, will probably experience additional depreciation in the next few months as many owners hit the panic button and try to unload them. These models will suddenly be more affordable on the used car market.
- Once VW comes up with a fix, even if the mileage ratings of their diesel vehicles drop, it will still be good to very good, just not spectacular.
We do, however, have one tip if you plan on taking advantage of this particular buyer's market: Volkswagens do have a tendency to spend more time in the shop than Japanese or Korean vehicles, so it might be a good idea to buy a service contract.
As We See It
Car buyers with bad credit might want to take advantage of the current emissions fiasco, as they might find some real bargains by looking at used Volkswagens, especially models equipped with a diesel engine. Who knows, you might even be able to finance one with little or no money down.
We also have one more tip: Drivers Lane specializes in helping borrowers with iffy credit find car dealers that can give them their best chance to get approved.
So, if you're ready to begin the process, you can begin now by filling out our fast and secure online car loan application.