VW car finance now more affordable

VW South Africa (VWSA) has “restructured” its EasyFinance deals to now be a guaranteed future value (GFV) product, said the company.

The GFV is the minimum future value of your vehicle after a predetermined time has passed, and it is determined by VW Financial Services (VWFS) upon application.

The revamped GFV deals have enabled VWFS to sell new vehicles at a more affordable monthly rate than its previous conventional finance contracts, which offered no GFV options.

In order to achieve this, the company said it has calculated the strategic residual values (RV) for its vehicles and also “residualised some of the options on the cars.”

“Both the strategic RV and the options residualisation have contributed to a lower monthly instalment than on traditional finance over the equivalent term,” said VW South Africa (VWSA).

“We have found that the sweet spot for equity in the vehicle is at month 42.”

The new finance product is aimed at providing customers with more flexibility with regard to their annual mileage parameters and end-of-term vehicle disposal options.

“This is a great product when customers’ disposable income is under duress,” said VWSA.

How it works

VWSA’s new GFV deals provide finance options of between 24 and 48 months, with annual mileage parameters of 10,000km-30,000km.

The offers extend to the entire VW family of vehicles, including the commercially-aligned Caddy and Crafter, and also allow for the addition of optional extras.

At the end of the period, customers will have three alternatives for their vehicle:

• Trade in – Trade in for a new VW
• Return – Hand the vehicle back to VW
• Keep – Settle or refinance the vehicle for the GFV

However, if the vehicle has exceeded the maximum mileage, not been serviced or maintained, or sustained more damage than stipulated in the sales contract, the customer will be billed accordingly.

“To protect your guaranteed minimum future value, your Volkswagen must be in an acceptable condition and within your stipulated kilometre limit when you return it to us,” states the VW EasyFinance website.

“Reasonable fair wear and tear from everyday use is only to be expected, but needs to stay within the guidelines set in your contract.”

What it costs

Current special offers for popular VW vehicles on a GFV agreement are as follows:

• VW Polo Vivo – From R2,272 p/m
• VW Polo – From R3,485 p/m
• VW T-Cross – From R4,160 p/m
• VW Taigo – From R5,688 p/m
• VW Tiguan – From R7,251 p/m
• VW Amarok – From R7,699 p/m
• VW Golf GTI – From R9,297 p/m
• VW Kombi 6.1 – From R9,699 p/m

These rates were calculated over 42 months and a 65,000km total contract limit, but may vary depending on optional add-ons such as warranties, service plans, and pricier features that are available to the original customer.