An impact on the future used values of Audi, Volkswagen, Seat and Skoda cars with CO2 irregularities is now ‘likely’, according to vehicle pricing experts.
CAP Automotive estimates that there are 70,000 affected vehicles in the UK, after Volkswagen Group had earlier said up to 800,000 of its vehicles globally may have higher CO2 emissions than stated. And, with the CO2 values of affected vehicles expected to increase, CAP suggests this could prove detrimental to future residual values (RVs).
Fleet News revealed last week how Volkswagen Group brands in the UK - VW, Audi, Skoda and Seat - told fleets they could not currently guarantee the CO2 emissions of certain vehicles. Quoted figures were instead being labelled "provisional", with disclaimers appearing on all of the VW Group manufacturers’ websites.
However, there is still no information regarding the cause of the irregularities and no timescale for when full details will be known.
CAP says that the 70,000 vehicles affected in the UK do not include unregistered vehicles, which will also be affected. Around 45,000 are 2015 registrations, representing 10% of Audi, Seat, Skoda, and VW volume. The only Audi model impacted is A1.
CAP estimates 189 current CAP IDs are affected under the “provisional” CO2 data guidance. Click here to discover which vehicles are affected.
Dylan Setterfield, senior forecasting editor at CAP, said: “Early feedback suggests many leasing companies will continue with ‘business as usual’, until more forensic detail is known. Some may remove these vehicles from their quotation systems.”
The Volkswagen Group has stressed that this is totally unrelated to the USA emissions scandal, regarding the use of defeat devices, and EPA NOx tests.
He continued: “It remains to be seen whether this will result in differences in BIK or VED bandings in all cases, although some changes are likely.
“The official line is that data is “provisional”, but it is expected that the CO2 emission values will increase for the highlighted vehicles.”
Volkswagen Group has said that if additional tax is incurred, the company intends to cover the cost to fleets and company car drivers.
Writing to Volkswagen customers, head of fleet Michael O'Shea, said: "The Volkswagen Group has informed relevant government authorities of this issue and intends to settle those potential additional taxes."
Setterfield concluded: “Some impact on future residual values is now likely, but remains impossible to quantify until full details are known.
“Ultimately, the physical characteristics of some cars are likely to change and this would be expected to have a negative impact on future demand. Conversely, it is possible that the future used value impact may be mitigated by short-term reductions in fleet registrations.”
For further analysis and what this may mean for fleets in terms of tax and residual values, see the next edition of Fleet News.
Will you order a Volkswagen, Audi, Skoda or Seat with provisional CO2 figures? Click here and vote in our online poll.