Surprise, VW dealers aren't exactly happy right now

Finance Charges, Full Car Lots May Vex US Volkswagen Sellers

See, now if Volkswagen went with the no-dealer distribution model Tesla Motors has been pushing for during the past few years, it wouldn't be having this problem, would it? The beleaguered German automaker is trying to work with US dealers taking some of the brunt of the diesel-emissions scandal that broke in September, Bloomberg News says. And there's a lot of work to be done.

The so-called "cheat" software that was designed to fool emissions-testing systems impacts about a half-million vehicles on US roads, and VW still hasn't figured out how or when it will repair the issue. The automaker withdrew its request for EPA certification for its new diesels, and that means the country's 650 VW dealers have a bunch of vehicles on their lots that can't be sold, and are costing the dealers a pretty penny in the form of finance charges, not to mention valuable real estate. VW is offering discounts on gas-powered VWs of as much as $4,200, and incentives of more than $2,200 on SUVs sold by VW's Audi division. The company will also be giving cash and no-interest loans to some US VW dealers.

As for customers who bought an affected oil burner, VW is giving them $500 on a prepaid Visa card, and another $500 in dealership credit under a so-called Goodwill Package. That program expires at the end of April 2016 and also includes a three-year 24-hour roadside-assistance package. As for used VW diesels owners are looking to sell, the automaker is offering to pay the trade-in book value of such vehicles, using pre-scandal valuations as a benchmark.

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