Used-Car Shoppers Haven't Stopped Buying Volkswagen's Dirty Diesels

Car dealers predictably steered clear of Volkswagen's dirty diesels after the company admitted to equipping its cars to cheat emissions tests. At auction, values for the 500,000 or so affected cars in the U.S. fell between 8 percent and 14.5 percent after the Volkswagen announcement in mid-September, according to new data from Kelley Blue Book. Values for gas-powered versions of the same cars dipped by 1.8 percent, evidence that the scandal could weigh on Volkswagen's reputation at large.

The price drop isn't surprising. The risk of being stuck with a bunch of toxic assets isn't worth the reward to the average car dealer. Drivers, however, see things differently. Volkswagen's diesels don't appear to have been dented nearly as much on secondary markets, where owners sell used cars directly.