Volkswagen Bank Ireland, a division of Volkswagen Financial Services, Europe’s biggest automotive finance provider revealed that in the first seven months of 2012 it has provided approximately €100 million in vehicle finance packages for Irish consumers and expects lending to grow by almost 10% year on year (2011 €109m) by the end of 2012 with a target of €120m.
The financial wing of Volkswagen Group, this finance has been provided via a range of attractive finance packages through Volkswagen Group’s five car marques which are Audi, Skoda, Seat, Volkswagen and Volkswagen Commercial Vehicles.
Providing vehicle finance in Ireland since 2008, Volkswagen Bank currently employs 30 staff at its headquarters in Leopardstown, Dublin 18. Volkswagen Bank has provided over €320m in vehicle finance to the Irish market in the last three and half years and it has viewed a significant surge in lending applications over the last 24 months as Irish motorists become more aware and more familiar with the competitive finance offers available via Europe’s largest automotive bank.
Surge in interest
A company executive said 2012 has seen surge of consumer interest in Volkswagen Bank. Irish motorists are embracing the Bank as a very real alternative source of finance compared to the traditional banking sector. The sound financial foundations of the Bank, enables Volkswagen Group to provide very competitive financial terms and this is reflected in the fact that we are lending record levels of finance so far in 2012 and that 70% of this lending has been provided for new car finance.
With a market leading acceptance rate of over 80%, approximately 6,500 tailor made finance packages with a average finance terms of 39 months were provided to Irish consumers by Volkswagen Bank Ireland so far in 2012. Over 20,000 Irish motorists have purchased their cars through Volkswagen Bank Ireland since its launch in 2008.
Finance packages vary across the five brands, reflecting each brands consumer segment with rates starting as low as 0% APR. In total 40 varying finance packages provided a comprehensive menu of finance options for Irish motorists during 2012 and this trend looks set to continue with a new range of packages currently in planning for 2013, these will be revealed later this year.
Explaining the key benefits of having Volkswagen Bank in Ireland, Simon Elliott Managing Director, Volkswagen Group said: “Volkswagen Bank is a key point of difference for Volkswagen Group in Ireland. Irish people by their very nature are reluctant to engage with non traditional finance. Unlike some of our competitors, Volkswagen Bank is a very real Bank and once this is demonstrated to potential customers our ability to provide market leading rates has resulted in a really positive increase in lending.
Shift in view of finance
“We are also beginning to notice a shift in how Irish motorists view vehicle finance. PCP which is quite common on the European mainland has until recently been viewed somewhat sceptically by Irish consumer, however sales trends so far in 2012 where PCP plans have more than doubled to 25% of Volkswagen Bank lending indicate that the Irish motorist is becoming more comfortable with this type of finance which is a positive trend for an Irish motoring industry that is fighting very hard to stay alive.”
Volkswagen Bank Ireland is also playing an important role with the 83 dealerships that currently operate across the five car marques of Volkswagen Group. Like other businesses in Ireland over the last number of years, Dealerships have not been immune to financial pressures from the Banking sector.
Volkswagen Bank is currently providing finance packages for Dealerships to purchase wholesale vehicle stock and looking ahead is examining the opportunities to provide additional finance for Dealerships to enable future growth.
For further information on the range of finance packages available across the Volkswagen Group go to www.readywhenyouare.ie