Volkswagen Bank Ireland, a division of Volkswagen Financial Services, Europe’s biggest automotive finance provider has today revealed that in the first nine months of 2011 it has provided approximately €91 million in vehicle finance packages for Irish consumers. A member of Volkswagen Group in Ireland, this finance has been provided via a range of attractive finance packages through Volkswagen Group’s five car marques which are: Audi, Skoda, Seat, VW and VW Commercial.
Providing vehicle finance in Ireland since 2008, Volkswagen Bank currently employs 30 staff at its headquarters in Leopardstown, Dublin 18. With assets of €400m, Volkswagen Bank has provided over €184m in vehicle finance to the Irish market to-date and it estimates that it will surpass the €100m mark for the twelve months of 2011, a landmark for the Bank. Commenting on the increasing level of finance provided, Mutlu Gur, General Manager, Volkswagen Bank said, “What is becoming clear is that the Irish consumer is moving away from the traditional banking sector and increasingly accessing finance from alternative providers. In particular for big ticket items like car purchases, Irish motorists are eager to engage with Volkswagen Bank because of our keenly priced finance packages and they are reassured by the considerable size and experience of Volkswagen Financial Services which operates across 35 countries.”
With an acceptance rate of 3 in every 4 applications, approximately 7,000 tailor made finance packages were provided to Irish consumers by Volkswagen Bank Ireland during 2011 with an average finance term of 40 months. Finance packages vary across the five brands, matching each brands consumer segment with rates starting as low as 4.9% APR. In total 19 varying finance packages provided a comprehensive menu of finance options for Irish motorists during 2011. 2012 will see even more attractive rates, starting from 0% and also including very attractive personal contract plans on a wide range of cars. For further information on the range of finance packages available across the Volkswagen Group go to www.readywhenyouare.ie
Explaining the key benefits of having Volkswagen Bank in Ireland, Simon Elliot Managing Director, Volkswagen Group outlines, “Our finance packages make car purchases really affordable for Irish consumers. Right now one in every five car purchases is completed via Volkswagen Bank finance over the next number of years we see this ratio increasing. 2012 will be the first year in some time for the Irish Motor Industry without the influence of the scrappage scheme, the ability to provide attractive finance packages will be a key market advantage for Volkswagen Group, setting us apart from our competitors. From Volkswagen Group’s perspective, European statistics tell us that in terms of brand loyalty there is a 30% higher retention rate amongst existing Volkswagen Bank finance customers, as the provision of attractive finance packages enables Volkswagen Group to remain with customers throughout their motoring lifecycle.”Volkswagen Bank Ireland is also playing an important role with the 104 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.
Looking ahead, Mutlu Gur reveals, “Volkswagen Bank Ireland recognises the opportunity for Volkswagen Bank to become a 360 degree financial services partner for consumers. It is clear from the uptake in our finance packages that consumers are not only comfortable with our offering but also want to consolidate their commercial dealings when it comes to their vehicle. Our experience within Europe demonstrates that the trend is moving more and more towards a relationship which focuses on the total cost of ownership for the consumer, effectively providing a one-stop shop for a consumers total automotive needs. This is an area that Volkswagen Bank in Ireland will be looking towards in years ahead.”