Volkswagen TDI - stock that cannot be sold - Niche uncovered deal

A Volkswagen dealership mentioned having about 70 new TDI’s vehicles that have been sitting there not allowed to sell until Volkswagen releases them after a modification in the exhaust. The sales folks don’t keep track of those cars on lot because they cannot sell them.

I believe that this will lead to great deals to lease or buy as the vehicles are minimum 2 model years old now sitting on these lots.

I have been calling Audi and Volkswagen dealers to see what inventory is out there to get a handle of the market. Most dealers don’t even realize they have those cars back there because they only care about what they are able to sell. The sales managers are key to the good information.

One manager had told me they have heard of a 18 month lease for the stock TDIs that they have. I do not know the reasoning behind 18 months for sure.

With diesel engine high residuals (anyone know what previous amounts are?) I imagine there will be deals to be had for those who wait and learn the market now.

Thoughts?? Am I on to something or is this crazy and VW wont take losses to get these leased out?

Wanted to share

That’s cray cray. VW will take the cars and crush them or send them to other countries. No way will they lease them here after having paid fines for several billion dollars. These cars cannot be fixed.

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How will you register the car since it can’t pass emissions?

Auto makers stop leasing older models at some point. GM is usually around the 1st week of January, so get your 2016 model GM lease before January!

Apparently there will be a fix on the exhaust of the cars. See below. Most owners want the $$$, right? There is a fix that will be installed in the exhaust of the engine in order to pass emissions and make the cars sell able that are sitting on dealer lots.

why spend more money to transport them and devote logistics to moving old inventory when there can be a small fix?

FWIW, GM already killed '16 ELR leases. They couldn’t drop that thing fast enough I guess!

Oh, and by the way… there are already a few deposits down on some of the inventory sitting in the back. So when VW does give the release they have dibs

You have not been reading about VW TDI adequately. There is no small fix. They have to redesign the system to use a tank of adblue. If it were a small fix, they would not be offering to buy back the cars of previous owners. Did Toyota offer to buy back all Camry’s when they had unintended accelaration? No. They just ask everyone to to come in for a fix of the throttle software and they removed the car mats.

They don’t actually have a fix yet, and some of the cars can’t be fixed because there isn’t enough space under the body.

Even if they do manage to come up with a fix that isn’t detrimental to performance or fuel economy, who would want to lease a 2+ year old car that had been sitting untouched in a parking lot for a few years? And why would Volkswagen want it back at the end of the lease? It would be practically worthless.

The better business decision is to scrap all of them and try to recoup some costs by salvaging reusable parts and precious metals.

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These cars will never hit the US market, there are no deals to be had on them, since it would cost VW more to make the compliant then they are actually worth.

WHELP… I was not necessarily right (there are no spectacular lease deals to be had right now)

but y’all had no clue what you were talking about… stick with me kids and think a little bit,…

especially @vhooloo - running that mouth off - boy I ought to give you one upside the head

Trumps America now y’all hear!!!

Oh boy. You wuz right.

No great lease deals… but when all the bought-back TDIs get retrofitted and offered for sale, get ready to see prices drop, drop, and keep dropping after the initial wave of TDI fans get theirs… then VW will realize not many are interested in buying a car that’s been at the center of an political/legal/environmental mess. They’ll cut prices until they’re juicy enough to get consumers to forget about all of that controversy. Will be a great time to buy one of these cars if you need a commuter vehicle on the cheap.

I disagree. Production volume is low and they’re phased out. Demand will be very high relative to availability. The older used market might get a push from people trading up but the new/newish models will stay high.

I may be dense but can someone remind me what is so great about a TDI?
a) The so-called mileage advantage is now reduced since VW has to modify the software?
b) These cars have been sitting for 2 years?
c) It is still a volkswagen and the gasoline equivalent cannot be given away?
d) There is no shortage of BMW, MB diesel etc etc?
e) Jaguar is now making diesels that are leasing well?

We are all just rattling our intellectual sabers lol. Ill be absolutely shocked if prices aren’t in the gutter within 1 month.

If you assume a 75% take rate on the buybacks (which is probably low given how lucrative they were vs accepting a fix) you have 360k used cars heading for the market, plus several months of new production that got held in inventory after the sales freeze. The supply seems limited right now because they just started a trickle of cars into the market… it will soon be a deluge. Do you really think there are 350-400k people out there who want anything to do with one of these cars? All most people know is that they have to put a different kind of liquid in them and that there is something “wrong” with them (but couldn’t tell you what).

Ok I promise I’m done arguing the point.

Those jumping on these deals better be true tdi fanboys otherwise it’s a shitty deal for real. Back in the day diesels were great because of the gas mileage…nowadays there’s so many hybrid choices that it makes no sense absolutely to get a diesel…the no1 reason for diesel cars existence has been taken care of by hybrids… move on people… unless you are a tdi fanboy

Agreed it makes about ZERO sense to LEASE any TDI. For a bunch of reasons…

  1. In the last ten years small displacement turbo engines that run on regular gas have really come far. Look at the 1.4T VW motor, gets 40 MPG on the highway and the same 0-60 as the TDI.
  2. TDIs cost a premium over the 1.8T gas engines
  3. In MOST of the country Diesel costs more than 87 octane
  4. Modern emissions equipment cut diesel MPGs between 10-20%
  5. Additional cost of adding DEF fluid every few thousand miles

VW TDI’s only really make sense if you buy the car and keep it for at lease 250K miles