Volkswagen Bank has provided Irish consumers with car loans to the value of €110 million since the start of 2013.
This represents strong growth for the bank which lent €83 million to Irish consumers during the same period last year. Since opening its doors in Ireland over five years ago, the bank has injected over €2 billion into the Irish market in the form of consumer car funding and Volkswagen group dealer network funding.
Volkswagen Bank continues to support the Volkswagen group’s brands through the provision of flexible finance packages.
No. 1 brand
This has seen Volkswagen maintain its position as number one car brand in Ireland in the first half of 2013, along with Audi as number one premium brand while also assisting SEAT to the largest market share growth year on year. Meanwhile, Skoda in continuing to increase its market share to become Ireland’s sixth biggest brand.
The Volkswagen Bank performance remained strong in the first half of the year with lending up by a third on the comparable period in 2012.
The continued growth in the level of lending demonstrated how the diversity of the banks offering has allowed Irish consumers to continue to look at different options when financing their motoring, a company spokesman said.
The performance of PCP in particular demonstrated how Irish motorists are now prepared to look at alternatives to traditional bank loans, he added.
Through innovative products, including Personal Contract Plans (PCPs) which Volkswagen Bank introduced to the Irish Market in 2009, Volkswagen Bank introduced a range of new financing options to the Irish market.
A Personal Contract Plan (PCP) 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.
Audi drivers in particular have embraced PCPs with a total of 81% of new Audi sales financed through PCPs growing from a base of just 6% in 2010.
Volkswagen Bank now finances 30% of the cars sold by Volkswagen Group Ireland, increasing from 25% in 2012 and a base of just 1% in 2008.
With the group’s market share now standing at almost 27%, Volkswagen Bank is currently financing almost one in 10 new cars sold in Ireland.