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Volkswagen Bank expected to lend €120m in 2012

German giant's financial wing bucks the trend with loans to consumers and dealerships.

Volkswagen Bank Ireland, the financial division of Volkswagen Group Ireland, has today (August 28) revealed that in the first seven months of 2012 it has provided approximately €100 million in vehicle finance packages for Irish consumers. By year end it is projected the Bank will have provided €120m in finance to customers buying a vehicle from the Group's five car marques: Audi, Skoda, SEAT, Volkswagen and Volkswagen Commercial Vehicles.

Based in Leopardstown and with a staff of 30, Volkswagen Bank has provided in excess of €320m to over 20,000 Irish motorists since its inception in 2008. Acceptance rates for the approximately 6,500 tailor made finance packages currently stands at 80 per cent with Personal Contract Plans (PCP) proving particularly popular with Irish buyers.

Commenting on the move towards PCP, Simon Elliott Managing Director, Volkswagen Group said, "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."

In addition to consumers, Volkswagen Bank Ireland is also playing an important role with the 83 dealerships that currently operate across the five car marques of Volkswagen Group. With credit from high street banks drying up Volkswagen Bank is providing finance packages for dealerships to purchase wholesale vehicle stock.

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Published on August 28, 2012