VW inquiries up 10% at KBB, 7% at Autotrader

Perhaps owners of Volkswagen diesel vehicles swept up in the recent controversy aren’t unloading these units in droves. However, recent data from Kelley Blue Book and Autotrader indicated that these consumers are at least acquiring more information about what their vehicle still might be worth.

According to Kelley Blue Book’s recent website metrics, Volkswagen TDI trade-in value lookups have increased 79 percent, while trade-in value inquiries for the brand as a whole have jumped by just 10 percent. Those trends are based on a week-over-week comparison from late September data that KBB reviewed and released on Monday.

KBB also mentioned that Volkswagen TDI Research has increased 13 percent for new models, and increased 16 percent for used vehicles. Meanwhile, site officials noticed Volkswagen total research has increased 15 percent for new vehicles, but decreased 12 percent for used models.

All told, inquiries for VW increased 10 percent on KBB.com

“During the last week since news broke of the emissions crisis, traffic to both KBB.com and Autotrader.com has generally increased for Volkswagen, particularly for the diesel models, but at this point it is hard to determine the mindset and intentions of precisely what these early surges in activity represent," said Rick Wainschel, vice president of customer analytics and insights for Kelley Blue Book.

“The increased level of trade-in activity on KBB.com and private seller activity for Autotrader appear to show that consumers are curious to see if values of these models have dropped, and demonstrate they may have some level of concern on this aspect of the emissions issue,” Wainschel continued.

“At the very least, it indicates that consumers are hungry for information about values,” he added.

Over at Autotrader, officials determined that consumers shopping for Volkswagen diesel units is up 7 percent week-over-week, while shopping activity for the brand as a whole is off by 1 percent.

Autotrader also mentioned Volkswagen private seller activity for diesel models is up 19 percent as total VW private seller activity ticked 1 percent higher.

So what do all of these metrics means in light of the turmoil surrounding VW?

“This announcement impacts the diesel vehicles from Volkswagen, which carry higher residual values than their equivalent gasoline counterparts," said Eric Ibara, director of residual values for Kelley Blue Book.

“While early readings suggest that TDI vehicles are being affected by the news, it is possible that they could return to normal levels within a year,” Ibara continued. “This will depend on how Volkswagen handles this crisis and what they announce the fix will be for the U.S. market.”

A note about VW leasing

Another section of the VW story to watch is the leasing market. Swapalease.com reiterated that Volkswagen frequently offers aggressive lease deals on many of its makes and models, and as such, is well represented in the Swapalease.com marketplace.

As of Monday, Swapalease.com executive vice president Scot Hall said the site has not seen any “noticeable changes” in the behavior or patterns of either those individuals looking to get out of their lease, or those consumers looking to take over a lease.

“Please keep in mind that this pattern may change in the coming weeks due to Volkswagen’s pending plans for a fix on the diesel vehicles announced recently,” Swapalease.com said in a message to Auto Remarketing. “Leases under recall are not allowed to be transferred until documentation of a fix can be provided to the lease company, but so far customers are still allowed to make transfers.”

A weathered image

No matter what plan VW orchestrates to modify the diesel vehicles that regulators found to be not as efficient as previously believed, the automaker also has a public perception issue to tackle if surveys orchestrated by KBB and Autotrader are any indication.

Kelley Blue Book and Autotrader reported that more than 70 percent of KBB.com survey respondents believe the diesel emissions issue could spread beyond just Volkswagen. 

As for the brand's reputation, the majority of those surveyed say they have “complete” or "general mistrust” in Volkswagen. 

In addition, according to a recent Autotrader Quick Poll, 30 percent of the 914 respondents said they would be less likely to consider a diesel vehicle.

“Volkswagen can fix the mechanical problems and make reparations to owners, but winning back the confidence of shoppers and loyal buyers will be a daunting challenge that could take years to overcome," said Michelle Krebs, senior analyst for Autotrader.

“Every automaker should take note of the importance of integrity,” Krebs added

Kelley Blue Book's five-day survey wrapped up on Sept. 28 and gathered information from 1,002 respondents. The seven key highlights included:

— 64 percent of consumers are aware of the diesel emissions issue.

— 96 percent of those aware say that Volkswagen is the primary manufacturer involved.

— 63 percent cite "intentional deceit" as the most troubling aspect of this issue.

— 53 percent of respondents say they have "complete" or "general mistrust" in Volkswagen.

— 72 percent say they think this issue could spread beyond Volkswagen.

— 42 percent feel other automobile manufacturers also are secretly violating EPA emission rules.

— 58 percent are unsure if Volkswagen is taking proper actions in addressing this issue.

“Automotive consumers are well aware of the diesel emissions issue, and they have Volkswagen squarely in their sights as the manufacturer at fault,” Wainschel said. “As a result, the company's brand image is taking a hit.

“If this issue spreads, which consumers see as entirely plausible, other manufacturers — and diesel vehicles in general — also could be affected,” he went on to say.