Volkswagen tells us that it has introduced a zero per cent finance offer across its range of passenger cars for a limited period.
The company told the Advertiser that the decision to offer zero per cent finance on hire purchase agreements across the range comes on the back of a successful first quarter for the brand. Volkswagen currently commands 12.4 per cent of the market and number one position in the Irish new car market.
Paul Burke, operations director for Volkswagen Group Ireland, said: “Volkswagen continues to be the most popular passenger car brand in Ireland but we know many potential customers are struggling to put finance in place with many banks reluctant to lend. Our customers have become more astute and recognise that by availing of a finance offer from Volkswagen Bank they are able to access a more attractive, flexible finance offer.”
VW Bank has been operating in Ireland since 2008 and offers finance arrangements across the Volkswagen Group. It currently offers finance through hire purchase agreements or personal contract plans.
A personal contract plan is a fixed rate, fixed term car funding arrangement with a guaranteed minimum future value underwritten for the car. This value is deferred to the end of the loan, reducing monthly payments during the term of the finance arrangement. At the end of the term the customer can decide to pay off the balance or give the car back and enter into a new agreement with a new model.
The typical term for a finance arrangement with Volkswagen Bank is approximately 40 months – this has been reduced from 51 months – which was the normal term in 2008. Amounts borrowed have also reduced in the past five years with customers now borrowing, on average €14,700, a reduction of €1,000, on the average sum borrowed in 2008.
As usual terms and conditions apply to all finance offers.