Volkswagen installed software that cheated on emissions tests

Between 2009 and 2015, Volkswagen programmed diesel engines in millions of cars worldwide to detect when they were being tested for emissions and switch into a mode that produced far fewer pollutants than they actually did on the road. When not being tested, the cars emitted nitrogen oxides at levels up to 40 times higher than legal limits. The company called this software "defeat devices." In September 2015, the U.S. Environmental Protection Agency discovered the deception, and Volkswagen admitted to installing these systems in roughly 11 million vehicles globally, including about 500,000 in the United States.

This was not a manufacturing defect or an unintended consequence of engineering. Internal emails and testimony later showed that Volkswagen executives knew about the software and approved its use. The company faced criminal charges, paid billions in fines and settlements, and recalled millions of vehicles. For owners of affected cars, the scandal created a specific set of problems: their vehicles were worth less, they faced uncertainty about repairs, and they had to decide whether to keep, sell, or trade in their car.

Key Takeaways

  • Volkswagen diesel vehicles from model years 2009 to 2015 with 2.0-liter engines were equipped with software designed to cheat emissions tests.
  • Owners of affected vehicles were offered buyback programs, lease termination options, or repairs that reduced engine performance or fuel economy.
  • If you own an affected Volkswagen, your car's resale value dropped significantly after the scandal became public.
  • The recall and repair process took years to complete, and many owners had to choose between keeping a repaired vehicle or accepting a buyback offer.

Which Volkswagen models and years were affected

The defeat device was installed in Volkswagen and Audi diesel vehicles sold in the United States from model year 2009 through 2015. The affected models include the Volkswagen Jetta, Golf, Beetle, and Passat, as well as the Audi A3. All of these vehicles had 2.0-liter turbocharged diesel engines. Volkswagen also sold vehicles with larger diesel engines (3.0-liter) that contained similar software, though those were recalled separately and in smaller numbers.

Not every Volkswagen diesel from those years was affected—only those with the 2.0-liter engine. If you own a Volkswagen diesel from this period, you can check whether your specific vehicle is on the recall list by entering your Vehicle Identification Number (VIN) on the EPA's website or on Volkswagen's dedicated recall portal. Your VIN appears on your registration documents and on a label inside the driver's side door jamb.

What Volkswagen offered to owners

Volkswagen's settlement with U.S. regulators and owners created three main paths forward. The first was a buyback program, where Volkswagen would purchase the vehicle from you at a price based on its pre-scandal market value, plus compensation. The second was lease termination for owners who were leasing rather than owning—Volkswagen would end the lease early without penalty. The third was a repair program, where Volkswagen would modify the engine software and, in some cases, install hardware to bring emissions into legal range.

The buyback and lease termination options closed years ago. Owners who did not take those routes were required to have their vehicles repaired. The repair itself was free, but it came with a trade-off: the modified software reduced engine performance and, in most cases, lowered fuel economy by 10 to 20 percent. Volkswagen also offered additional compensation to owners who kept their vehicles and had them repaired, though the amount varied based on the model year and when the repair was completed.

How the repair affected vehicle performance

When Volkswagen reprogrammed the engines to meet emissions standards in real-world driving, the cars became less powerful and less fuel-efficient. Owners reported noticeable drops in acceleration and highway passing ability. The fuel economy decline meant owners spent more on diesel fuel to drive the same distance they had before the repair. For some owners, this was a significant financial hit over the life of vehicle ownership.

Volkswagen did not offer owners a choice between repair and keeping the car unrepaired. Once the recall was underway in your region, you were required to bring your vehicle in for the modification. If you refused, your car could not pass emissions testing in states that required it, and you would not be able to renew your registration. This left owners with limited practical options: accept the repair, sell the vehicle before the repair was mandatory in your area, or pursue legal action against Volkswagen.

The impact on resale value and insurance

Volkswagen diesel vehicles lost significant value after the scandal became public. A car worth $20,000 before September 2015 might have been worth $12,000 to $15,000 within weeks. The value drop reflected three factors: the stigma of owning a car from a company caught cheating, uncertainty about whether repairs would work and how they would affect the car, and the knowledge that any future buyer would also face the same performance and fuel economy penalties.

Insurance companies did not typically raise rates on affected vehicles, but the lower resale value meant owners who financed their cars were often "underwater"—owing more to the lender than the car was worth. Owners who had paid cash lost money if they sold. Even owners who kept their vehicles and had them repaired found that the car's value remained depressed compared to similar non-diesel Volkswagens or competitors' vehicles.

What happened to Volkswagen as a company

Volkswagen paid $14.7 billion in the United States alone to settle with the EPA, the Federal Trade Commission, the Department of Justice, and individual owners. The company also faced criminal charges; several executives were prosecuted, and some served prison time. In Europe and other countries, Volkswagen faced additional fines and legal action, bringing the global cost of the scandal to over $30 billion.

The scandal damaged Volkswagen's reputation for engineering quality and corporate integrity. The company has since invested heavily in electric vehicle development and has publicly committed to phasing out diesel engines in most markets. However, the brand's reputation for trustworthiness took years to rebuild, and many consumers who owned affected vehicles developed lasting skepticism about the company's claims.

If you currently own an affected Volkswagen

If your vehicle was part of the recall and you have not yet had it repaired, you should contact a Volkswagen dealership to schedule the work. The repair is free, and Volkswagen covers all costs. Bring your VIN and registration documents. The repair typically takes a few hours, and you will receive a loaner vehicle or transportation while yours is being serviced.

If you are considering buying a used Volkswagen diesel from the affected years, research whether that specific vehicle has been repaired. You can ask the seller for documentation of the repair, or you can check the vehicle history report. A repaired vehicle is legal to own and drive, but you should factor the reduced fuel economy and performance into your purchase decision. Many buyers avoid these vehicles entirely because of the performance penalty and the lingering stigma, which keeps prices lower than comparable gasoline-powered alternatives.

Frequently Asked Questions

Can I still get money from Volkswagen if I own an affected car?

The buyback and lease termination programs ended years ago. However, some owners received additional compensation as part of the settlement if they kept their vehicles and had them repaired. Contact Volkswagen directly or check your settlement documentation to see if you are may have access to to any remaining payments. Class action lawsuits have also settled over the years, and you may be able to file a claim if you meet the criteria.

What if my Volkswagen diesel is from 2016 or later?

Vehicles from 2016 onward were not part of the original scandal. Volkswagen redesigned the diesel engines and software for those model years to meet emissions standards without defeat devices. However, some 2016 and later models with larger 3.0-liter diesel engines were later found to have similar issues and were recalled separately. Check your VIN on the EPA website to confirm whether your vehicle is affected.

Does the repair actually reduce fuel economy as much as people say?

Yes. Independent testing and owner reports consistently show fuel economy drops of 10 to 20 percent after the repair, depending on the model and driving conditions. The exact impact varies, but most owners notice a meaningful increase in fuel costs. This is a real trade-off: the car now meets emissions standards, but it costs more to operate.

Should I sell my repaired Volkswagen diesel?

That depends on your situation. If you drive a lot and fuel costs matter to you, the reduced fuel economy may make it uneconomical to keep. If you drive infrequently and the car is reliable, keeping it may make sense. The resale value of repaired vehicles remains lower than comparable gasoline cars, so you will not recover the value loss through a sale. Consider the total cost of ownership—fuel, maintenance, and the lower resale price—against the cost of replacing the vehicle.

Can I sue Volkswagen separately if I own an affected vehicle?

Individual lawsuits against Volkswagen were largely consolidated into class action settlements. If you own an affected vehicle, you were typically included in one of those settlements automatically or were given the option to join. Pursuing a separate lawsuit now would be difficult because the major claims have already been settled. Check whether you received settlement notices or payments related to your vehicle.