Volkswagen Australia has introduced the Volkswagen Choice guaranteed future value program, designed to give customers peace of mind about the value of their vehicle at the end of their financing period.
Volkswagen Choice works identically the Skoda Choice program announced by the German car maker’s Czech sister brand last month, allowing VW customers to know the minimum value of their car at the end of their term and being free to either retain, return or trade it in.
Under the Volkswagen Choice program, customers will have the option of financing the full on-road cost of their vehicle or placing a deposit at the time of purchase.
They then nominate the kilometres they’re likely to travel per year, ranging between 10,000km and 25,000km, and select a term of 12, 24, 36 or 48 months.
Using the agreed kilometre limit and term, the vehicle’s future value is calculated and agreed upon, helping to set the fixed monthly repayments.
At the end of the contract – given the car has not exceeded the agreed kilometre limit and has been subject to reasonable wear and tear – the owner can either return their car, retain it and pay the balance or refinance with the intention of keeping it, or get a new Volkswagen by trading in the old one and applying for a new finance package.
Until June 30, Volkswagen Financial Services – the company’s in-house finance division – is also making a $1000 bonus contribution towards customers’ financing as a special introductory offer.
Volkswagen Financial Services has provided a few case studies of Volkswagen Choice in action.
The first is financing for a $27,990 Tiguan 118TSI with a term of 48 months, estimated annual mileage of 15,000km, and a final balloon payment. With a comparison rate of 8.34 per cent and weekly repayments of $128, customers can expect a minimum vehicle value of $10,082 at the end of the term.
The second is financing for a $15,990 Polo 66TSI Trendline with a term of 36 months, estimated annual mileage of 10,000km, and a final balloon payment. With the same comparison rate and weekly repayments of $77, customers can expect a minimum vehicle value of $7466 at the end of the term.
The third is financing for a $43,990 Amarok Trendline dual-cab with a term of 48 months, estimated annual mileage of 15,000km, and a final balloon payment. With the 8.34 per cent comparison rate and weekly repayments of $180, customers can expect a minimum vehicle value of $20,336 at the end of the term.