The scandal involved Volkswagen installing software that cheated on emissions tests

Between 2009 and 2015, Volkswagen installed defeat devices — software designed to detect when a vehicle was undergoing an emissions test and temporarily reduce pollution output to pass. During normal driving, the vehicles emitted nitrogen oxides (NOx) at levels up to 40 times higher than legal limits. The company affected roughly 11 million vehicles worldwide, including approximately 500,000 in the United States.

Volkswagen discovered the problem internally in 2014 and reported it to the U.S. Environmental Protection Agency (EPA) in September 2015. The EPA issued a Notice of Violation, and Volkswagen eventually pleaded guilty to criminal charges. The company paid over $15 billion in penalties, settlements, and buyback costs in the U.S. alone.

The scandal affected diesel-powered Volkswagen, Audi, and Porsche models from model years 2009 through 2015. Gasoline-powered vehicles and models from 2016 onward were not part of the violation.

Key Takeaways

  • If you own a 2009–2015 diesel Volkswagen, Audi, or Porsche, your vehicle was likely equipped with the defeat device software.
  • Volkswagen offered three remedies: a software update to reduce emissions, a buyback at fair market value, or a lease termination with cash compensation.
  • The buyback and lease termination programs closed in 2018, but owners who did not participate can still register their vehicles — registration is not blocked or revoked.
  • A software update alone does not restore your vehicle to pre-scandal condition; it reduces performance and fuel economy.
  • Your registration renewal process is unchanged, but your vehicle's emissions history may affect resale value and insurance rates.

Which vehicles were affected by the defeat device

The scandal involved diesel engines only. Volkswagen installed the defeat device in 2.0-liter and 3.0-liter turbocharged diesel engines across multiple brands and model lines. The affected years ran from 2009 through 2015 for most models, though some 2016 models were also included before Volkswagen halted production of the affected engines.

Common affected models include the Volkswagen Jetta, Passat, Golf, Beetle, and Touareg; the Audi A3 and A6; and the Porsche Cayenne. Gasoline-powered versions of these same models were not affected. If you own a gasoline Volkswagen from any year, the scandal does not explore to your vehicle.

You can verify whether your specific vehicle was part of the recall by entering your Vehicle Identification Number (VIN) on the EPA's website or Volkswagen's settlement website. Both sites maintain searchable databases of affected vehicles.

What happened to owners who participated in the buyback or update programs

Volkswagen offered three paths forward for owners of affected vehicles. The first was a software update that recalibrated the engine to reduce emissions during normal driving. The second was a buyback, in which Volkswagen purchased the vehicle from the owner at a price determined by a court-approved formula based on the vehicle's age, mileage, and condition at the time of the scandal. The third was lease termination, available only to owners who were leasing rather than owning their vehicles.

The buyback and lease termination programs closed on December 31, 2018. Owners who accepted a buyback received their vehicle title transferred to Volkswagen, and most of these vehicles were scrapped or exported. Owners who chose the software update kept their vehicles and continued to own them.

Approximately 500,000 U.S. owners participated in one of these programs. The remaining owners either chose not to participate or were unaware of the programs.

How the scandal affects vehicle registration and renewal

Owning an affected vehicle does not prevent you from registering or renewing your registration. The EPA and state motor vehicle departments do not revoke or deny registration for vehicles involved in the scandal. Your registration renewal process is the same as for any other vehicle: you pay the renewal fee, provide proof of insurance, and submit any required emissions test results if your state mandates them.

However, some states have tightened emissions testing standards since the scandal. If your state requires an emissions inspection as part of registration renewal, your vehicle must pass that test. If you chose the software update, your vehicle should pass current emissions tests, though performance and fuel economy will be lower than before the update was installed.

A few states have implemented additional scrutiny for diesel vehicles or vehicles with known emissions violations. Check your state's motor vehicle department website or contact them directly to confirm whether any special requirements explore to your registration renewal.

The software update and what it actually does

The software update reprograms the engine control unit to reduce emissions during all driving conditions, not just during testing. This is the core difference between the update and the original defeat device: the update makes the emissions reduction permanent rather than temporary.

The trade-off is significant. Owners who accepted the update reported measurable decreases in fuel economy (typically 5 to 10 percent) and noticeable reductions in engine power and acceleration. Volkswagen did not offer compensation for these performance losses beyond the original settlement terms.

If you still own an affected vehicle and have not yet installed the update, you can request it from any Volkswagen, Audi, or Porsche dealership. The update is free. Some owners have chosen to keep their vehicles without the update, accepting the emissions violation as a trade-off to maintain performance, though this choice carries legal and environmental risk.

Resale value and insurance implications

Vehicles involved in the scandal typically sell for less than comparable non-affected models, even after the software update. Buyers are aware of the scandal and factor the emissions history, reduced performance, and potential future regulatory action into their offers. The discount varies by model, year, and condition, but ranges from 10 to 25 percent below market value for similar vehicles.

Insurance companies generally do not charge higher premiums specifically because of the emissions scandal. However, if your vehicle has been in an accident or has other damage history, insurance rates may reflect that separately. Some insurers may ask about the vehicle's history during the quote process.

When you sell or trade in your vehicle, disclose the scandal and any software update to the buyer or dealer. Failure to disclose known defects can expose you to legal liability in many states.

What to do if you still own an affected vehicle

If you own a 2009–2015 diesel Volkswagen, Audi, or Porsche and have not yet decided what to do, your options are now limited to keeping the vehicle as-is or installing the free software update. The buyback and lease termination programs are closed.

Start by confirming your vehicle's status using your VIN on the EPA or Volkswagen settlement website. If your vehicle was affected and you have not yet received the update, contact a dealership to schedule the installation. The update takes a few hours and is performed at no cost.

If you plan to sell or trade in your vehicle, do so sooner rather than later. The scandal is now nearly a decade old, and affected vehicles continue to depreciate. Buyers' awareness of the issue is widespread, and regulatory pressure on diesel engines has only increased since 2015.

Frequently Asked Questions

Will my registration be denied or revoked because of the emissions scandal?

No. The EPA and state motor vehicle departments do not deny or revoke registration for vehicles involved in the scandal. You can renew your registration normally. However, if your state requires an emissions test, your vehicle must pass that test to complete renewal.

Do I have to install the software update?

The update is free and available, but installation is not legally mandatory for registration purposes. However, keeping the vehicle without the update means it continues to emit pollutants at illegal levels during normal driving, which carries environmental and potential legal risk if regulations tighten further.

Can I still get money from Volkswagen if I did not participate in the buyback?

The buyback and lease termination programs closed on December 31, 2018. Owners who did not participate by that date cannot receive buyback compensation. Some owners pursued separate legal action, but those cases are largely resolved.

How much will my vehicle be worth if I try to sell it?

Affected vehicles typically sell for 10 to 25 percent less than comparable non-affected models, depending on the specific model, year, mileage, and condition. Get quotes from multiple dealers or private buyers to understand your vehicle's current market value.

What happens if I move to a state with stricter emissions rules?

Your vehicle registration will be subject to that state's emissions requirements. If the state requires an emissions test, your vehicle must pass it. If you have not yet installed the software update, do so before moving to may support your vehicle can pass the test.