SAN FRANCISCO -

The settlement plan involving Volkswagen and Audi 2.0L TDI vehicles in the U.S. has been granted preliminary approval by a federal judge in California, meaning eligible customers will soon have an important choice to make: sell their car back to VW (or end the lease without a penalty) or keep the car and get a free emissions modification.

Instamotor, an online auto marketplace in the peer-to-peer space, is aiming to help consumers make that decision.

The company launched a VW settlement calculator this week that tells owners of affected vehicles what they can expect to receive.

“Since the start of the VW dieselgate saga, used diesel prices have dropped significantly, mostly because of the uncertainty in what exactly is going to happen,” Instamotor co-founder Val Gui said in an emailed Q&A with Auto Remarketing.

“From what we hear, consumer confidence in these cars is at an all-time low. Now that a resolution is on the horizon, we expect prices to stabilize and with the settlement payments, the hope is that owners can make the best decision on what they want to do,” Gui said.  

“It’s still unclear how the modification will affect the vehicles, but with the use of this tool, owners can get the dollar and cents picture of how much their vehicle is worth, and if it makes sense to return the vehicle or get the modification and potentially sell the vehicle down the line,” he said.

Basing this information off the preliminary approval and the data provided at www.VWCourtSettlement.com, Instamotor’s calculator computes the buyback amount (which is the trade-in value plus additional compensation) and the modification amount, the company said.

To calculate what they can receive, owners punch in their year, make, model, trim, location and vehicle features at https://www.instamotor.com/vw-settlement-calculator.

“There’s a ton of information out there to read and sift through, but at the core, people just want to know how the scandal affects them and their vehicles. An automotive purchase is one of the largest purchases they’ll ever make in their lives,” Gui said.

“They don’t care as much about the intricacies of the lawsuit, or how it’s going to affect VW’s stock or future earnings, but they do care about how it’s going to affect their pocketbook. This tool aims to help them understand their financial options so they can make a well-informed decision,” he said.   

VW indicated individual class members will now receive notification of their rights and options under the agreement. Volkswagen will begin the settlement program immediately after the court grants final approval to the class settlement, which is anticipated on Oct. 18.

More details on the settlement can be found here.

As for Instamotor’s decision to launch the calculator, Gui said the reason for providing such a solution was simple.

“Instamotor connects people locally for simplified and transparent car buying and selling, and developing this tool was an easy decision for us because it helps diesel owners make an informed decision,” he said.

“The dieselgate saga has been in the news for almost a year now, but it’s been difficult for the average consumer, even if they own a VW vehicle, to follow along closely and really understand the ins and outs of the case and how it affects them directly,” Gui said. “We receive a lot of questions from diesel owners, so we knew that providing a simple calculator to help consumers understand their options would provide value.”

With the final settlement not expected until fall, consumers have some time to make their choice. And based on the tenor of consumer reaction, many may choose not to keep their vehicle.

So what are the options for those who go that route and are still interested in a similar vehicle?

“Buyers of diesel vehicles purchase them because they are generally more efficient than a comparable gasoline engine and can provide more power. Owners of diesel vehicles have chosen to pay a premium for them and there are many other excellent options to consider including hybrids,” Gui said.

“For Jetta Sportwagen owners, a Ford c-Max hybrid might fit the bill, and it gets 21 percent better fuel efficiency while being almost identically priced. The Ford Fusion Hybrid or the Camry Hybrid are both a great alternatives to the Passat TDI,” he said. “They'll also save money on gasoline. On the lower end of the price spectrum consumers can consider the Subaru Impreza, which is the lowest priced all-wheel drive on the market.

“For those customers that have fallen in love with diesel, the options are a bit more sparse. Chevy Cruze offered a diesel through 2015 that has been well-rated, and BMW offers a diesel in the U.S., albeit with a much higher price tag than you’d see on any comparable VW.”