What discount factor is applied to VW diesel car buybacks?

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Volkswagen Buyback Discounts Account for Vehicle Depreciation

The German Federal Court of Justice has ruled that Volkswagen must repurchase diesel cars modified to meet emissions standards, but the reimbursement amount is reduced to account for the vehicle's depreciation during the owner's period of use. This means that while the car is bought back, the owner will not receive the full original purchase price.
Court Orders Repurchase with Price Adjustment

In a significant ruling, the Federal Court of Justice (BGH) in Karlsruhe upheld a lower court's decision requiring Volkswagen to buy back a diesel car. The plaintiff, Herbert Gilbert, will be reimbursed for his 2014 Volkswagen Sharan minivan, with the court ordering VW to pay approximately €25,600. This amount is nearly €6,000 less than the initial purchase price of the vehicle.
Depreciation Factor Considered in Payout

The judges explicitly stated that the vehicle's depreciation in value over the time it was used by the owner was a key consideration in determining the final buyback price. This approach acknowledges the utility the owner received from the car, thereby reducing the amount Volkswagen is obligated to pay back.
Precedent for Thousands of Similar Cases

This decision sets a precedent for numerous other "dieselgate" cases pending in Germany, potentially impacting tens of thousands of car owners. While Volkswagen has stated its intention to resolve these cases through agreements with plaintiffs, the court's consideration of depreciation suggests a consistent method for calculating buyback compensation. The company aims to offer "appropriate offers" to affected owners, though specific details on the calculation of discounts beyond the depreciation factor remain subject to individual case assessments.

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What discount factor is applied to VW diesel car buybacks?

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