Volkswagen Diesel Emissions Settlement: Your Complete Guide to Compensation

The Historic Volkswagen Emissions Settlement

After extensive legal proceedings, Volkswagen's comprehensive settlement for 2.0-liter TDI diesel vehicles has received final judicial approval. The agreement addresses Volkswagen's admission that these vehicles contained illegal "defeat device" software designed to circumvent emissions regulations.

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This settlement affects approximately 475,000 Volkswagen and Audi vehicles from model years 2009-2015 equipped with 2.0-liter TDI diesel engines. The vehicles were found to emit nitrogen oxides (NOx) at up to 40 times the legal limit during real-world driving conditions.

Understanding Your Options as an Affected Owner

Owners of recalled vehicles have two primary options under the settlement agreement:

1. Vehicle Buyback Program

The buyback option provides owners with:

• Pre-scandal trade-in value (September 2015 NADA Clean Trade-In value)
• Additional restitution payment (averaging 20% of vehicle value)
• Total compensation typically exceeding 112% of the vehicle's 2015 value

2. Approved Repair + Restitution

For owners wishing to keep their vehicles:

• Volkswagen must develop EPA-approved emissions modifications
• Owners receive reduced restitution payments
• Vehicle warranty extensions provided
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How the Buyback Process Works

Volkswagen has established a streamlined process for vehicle repurchases:

1. Submit Your Claim: File online at Volkswagen's claims portal or call 844-982-5246
2. Document Submission: Provide required ownership and vehicle documentation
3. Offer Review: Volkswagen reviews and makes a buyback offer
4. Acceptance: Owner accepts the offer and schedules buyback appointment
5. Vehicle Return: Complete transaction at authorized Volkswagen dealership

All buyback transactions occur at Volkswagen dealerships, with each location having a dedicated settlement specialist. The process typically takes 4-8 weeks from initial claim to payment.

Special Considerations for Different Owner Situations

Leaseholders

Lessees have specific provisions under the settlement:

• Early lease termination without penalty
• Restitution payments based on lease terms
• Pro-rated compensation for remaining lease period
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Previous Owners

Individuals who sold their affected vehicles after the scandal broke may still qualify for partial restitution based on:

• Ownership period during the violation timeframe
• Documented sale information
• Vehicle identification details

Totaled Vehicles

Owners whose vehicles were wrecked or declared total losses may be eligible for reduced compensation if they can provide:

• Proof of ownership at time of incident
• Insurance documentation
• Vehicle status reports

The 3.0-Liter TDI Situation

While the current settlement addresses 2.0-liter engines, approximately 80,000 vehicles with 3.0-liter V6 TDI engines remain unresolved, including:

• Volkswagen Touareg
• Audi Q5, Q7, A6, A7, A8
• Porsche Cayenne Diesel

Older 3.0-liter models (2009-2012) may require buybacks if no acceptable repair is developed, while newer models (2013-2016) are expected to receive software and hardware modifications.

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Environmental Remediation Efforts

The settlement mandates significant investments in environmental restoration:

Mitigation Trust Fund ($2.7 Billion)

This fund supports projects to reduce nitrogen oxide emissions, including:

• Modernization of diesel fleets (school buses, public transit)
• Port equipment upgrades
• Freight and delivery vehicle replacements

Zero-Emission Vehicle Investment ($2 Billion)

Volkswagen's subsidiary Electrify America will deploy this capital over 10 years for:

• Nationwide electric vehicle charging network
• Green city initiatives
• EV education programs
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Frequently Asked Questions

How long do I have to decide on the buyback?

The claim period remains open for approximately two years from settlement approval. However, early participation is recommended to secure your preferred appointment time.

What if I already sold my affected Volkswagen?

Previous owners may qualify for partial restitution based on their ownership period during the violation timeframe. Documentation of sale and ownership is required.

Will the buyback affect my credit or taxes?

Buybacks are treated as standard vehicle sales. Consult a tax professional regarding potential tax implications based on your individual circumstances.

What happens to all the bought-back vehicles?

Volkswagen must ensure 85% of affected vehicles are either repaired or permanently removed from road use. Most repurchased vehicles will likely be recycled or exported to markets where they meet emissions standards.

How to Protect Your Rights

Affected owners should take these steps immediately:

1. Document your vehicle's current condition with photos
2. Gather all ownership records and maintenance history
3. Monitor your state's attorney general website for updates
4. Consult with an independent mechanic about your vehicle's condition
5. Consider consulting a consumer protection attorney if you have unique circumstances