Volkswagen Car Loans and Business Vehicle Finance

* The comparison rate displayed is calculated for a loan of $30,000 over 5 years. The results from this calculator should be used as an indication only. Quoted repayments are based on advertised rates and do not include lender fees and charges. Results do not represent either quotes or pre-qualifications for a loan. The specific details of your loan will be provided to you in your loan contract. It is advised that you speak with us so that we can provide you with advice that is tailored to your situation.

Volkswagen, better known as simply VW, is a well-known motor vehicle brand in Australia. What maybe not as well-known is that the badge associated in history with Beetle and the Kombivan is actually the largest auto manufacturer globally, based on 2016 and 2017 sales figures. The Volkswagen Group is not limited to only vehicles featuring its badge, it comprises an impressive 12 brands including motor vehicles, motorcycles and trucks. Those brands are VW, SEAT, Audi, Bentley, Lamborghini, SKODA, Bugatti, Ducati, Scania, MAN, Porsche and VW Commercial Vehicles.

The Group operates 125 production plants in over 20 countries. In Australia, the VW range as we know it that is vehicles that proudly display the VW badge, includes both passenger cars and commercial vehicles. 

The popular passenger cars include the very popular Golf, the quite similar Polo, the Tiguan, Passat, T-Cross and Touareg. The multi person vehicles include the Multivan and Caravelle. In the dual cab chassis category the VW Amarok has become quite a popular buy with tradespeople and other business buyers and in the commercial van category, the Caddy, Transporter and Crafter are also available.

All in all, buyers have a good selection of Volkswagen vehicles in the Australian market.

Finance Offering

But as a large global organisation it comes as no surprise that VW would offer its customers access to its own vehicle finance services. As is the practice with many other manufacturers, the company offers both Personal Finance and Business Car Finance for buyers of its vehicles.

For personal vehicle loans they advertise personal car loans with up to 7 year terms, balloon option and fixed interest rate. Novated Lease is also offered.

For business vehicle finances, they advertise Chattel Mortgage, Finance Lease and Hire Purchase. The same commercial finance facilities as are offered through Jade Car Loans and other lenders.

There appears no indication on the company website as to whether this finance is direct from the Group’s own financial resources as in manufacturer-funded or whether it is via another finance company. When reviewing the finance offerings from Volkswagen, we were unable to see an advertised interest rate on their vehicle finance.

Dealer and Manufacturer Finance

VW Finance is an example of what we refer to as dealer finance or manufacturer finance. Provided no doubt to provide convenience for their buyers, to drive sales and to expedite settlement. Motor vehicle dealers can risk losing a buyer if they depart the dealership after a test drive to go off and source their finance. The buyer may change their mind, may be attracted to another dealer or another brand or be unable to source finance and not be able to proceed with the purchase.

While this type of finance can appear convenient to car buyers – you only have the one organisation to deal with for your purchase and your finance and it all appears so easy to do – there are downsides that astute buyers should take into consideration.

Consider Your Options

When presented with the option for dealer or manufacturer finance, the one glaring downside from Jade’s perspective is the lack of choice. Customers are not provided with a choice of a number of banks or lenders, they have not been provided with a service to source the cheapest loan from across the finance market. They are given a quote for finance from that one source which may be owned by and is operated by the one company that is also selling the vehicle to them.

Many if not most car manufacturers and both new and used car dealers now offer a finance service. So when you are inevitably presented with the idea of taking their finance offer, consider what other alternatives you may have. Is there a better loan available to you? Could you source a cheaper interest rate on car finance and cheaper deal?

There is a plethora of banks and finance companies offering car finance and the sector is one of the most competitive in the financial services industry. Jade Car Loans operates to a business model that not only provides highly competitive and cheaper car finance but at the same time effectively provides customers with choices. We source the cheapest loan offer from across our vast lending panel which includes banks, finance companies and non-bank specialist lenders.

The Jade Car Loans Advantage

VW make great cars and operate a highly regarded and respected vehicle manufacturing organisation. Jade Car Loans provides great car loan deals at the cheapest interest rates and provides you with the confidence that your best interests in regards to consideration of multiple loan options have been addressed.

For a quote on a VW vehicle or to compare with a finance quote you have received from VW Finance, please contact Jade Car Loans on 1300 000 033