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Volkswagen resale prices drop 13 percent

Used Volkswagen diesel prices fell 13 percent, according to Kelley Blue Book's auction data. This decline occurred in the two weeks following the German automaker's announcement that the company was, in fact, cheating on emissions tests. (Tweet This)

This comes as a sharp contrast to only a 2 percent drop for the comparable gas-powered models.


Source: Kelley Blue Book

Kelley Blue Book analyst Tim Fleming said in an email that while used car values typically decline in the fall, the large price drop on Volkswagen diesels stands out.

Fleming added that even though the comparable gas-powered models haven't seen as steep of a decline in resale value, they could take a bigger hit if the negative response toward Volkswagen goes beyond just the diesel market.

According to Fleming, the price difference between the diesel and gas-powered Volkswagen models has fallen from around $2,700 to just $1,300.

Despite the decrease in value of used cars, Volkswagen revealed Thursday that its U.S. sales rose 0.6 percent in September, versus an expected decline of 7.3 percent.

The aftermath of the emissions scandal has not only impacted Volkswagen's turbodiesel engine (or TDI) resale prices, but has also created a busier online marketplace these vehicles in the United States.

Online used car marketplaces such as Kelley Blue Book or AutoTrader.com have been the recipients of increased activity surrounding the specific vehicles affected by the scandal.

Just last week, Michelle Krebs, a senior analyst at AutoTrader, told CNBC that the volume of shopping activity between private parties, including purchases and negotiations, is up by almost a fifth over the last week on autotrader.com.

This comes as overall Volkswagen shopping across the site — including not just private sales but all new and used sales of Volkswagen models — is actually down 1 percent within the same time frame, Krebs said.

AutoTrader's sister company, Kelley Blue Book, has seen a 79 percent increase in people looking up the trade-in values of Volkswagen TDIs on the site. Comparatively, Volkswagen total trade-in value look-ups (including non-TDIs) have increased by only 10 percent.

The U.S. online market trends come as there are indications that diesel Volkswagen sales are declining in Europe. MeinAuto.de, a German online car dealer, saw a 10 percent slip in inquiries last week, according to Deutsche Bank analysts. Additionally, a U.K. price data firm, Glass, said that Volkswagen TDI valuations fell 0.2 percent in September.

While online marketplaces are bustling, VW dealerships have been less forthcoming about sales trends. Dealerships in the New York City area that spoke with CNBC last week had little to say about how business was going and directed inquiries to Volkswagen's corporate office.