VOLKSWAGEN GROUP Ireland is set to offer 6.75 per cent hire purchase deals on a number of its brands and will trial a personal contract lease deal on the new Polo model.
Volkswagen Bank Ireland, which was set up as a branch of the Volkswagen Bank in Germany, says that it has up to 67 per cent approval rates on its financing and most customers can get an answer within one hour. “One of the major advantages we have of being new to the market is that we don’t have all the legacy bad debt that everyone is trying to wash through their books,” said Martin Ballard, general manager of Volkswagen Bank Ireland.
Volkswagen Group Ireland’s managing director Paul Willis also announced to The Irish Times that it would apply the same 6.75 per cent APR finance rate to the Seat brand when it takes over the distribution of the brand on November 1st. Volkswagen also told The Irish Times that it intend to pilot a personal contract purchase scheme on the new Polo model.
The product, which will be called Solutions, will allow customers to drive a new Polo from €236 per month (figures are indicative) on lease deal, with a balloon payment option at the end of the term. Customers will then have the option of buying the car or refinancing to a different model.
This news comes as a survey carried out across the Peugeot dealer network shows that 71 per cent of car finance proposals were being rejected and this compares to an average of 30 per cent in September 2008.
It also showed that the average customer equity required for a new car is 32 per cent. It also cites credit unions as one of the biggest sources of finance at 29 per cent.
Ford Credit says that 70 per cent of new car applications are being passed. Toyota would not disclose approval ratings for Toyota Finance but told Motors that “approval ratings for Toyota Finance are reported to be strong despite a marginal decline in the percentage approvals compared to last year, reflecting the current economic climate”.
Full story: page 2