Volkswagen Financing Deals and Review
Volkswagen Credit at a glance
Best for: Those who want to buy or lease a vehicle from a dealer
 | Starting APR: Not specified | Loan terms: Not specified |
Volkswagen Credit is the lending arm of Volkswagen. Established in 1981, Volkswagen Credit provides financing and lease options for new and pre-owned Volkswagen vehicles purchased through a dealership. Through Volkswagen Credit, buyers can receive special incentive offers and could land favorable interest rates based on their creditworthiness.
How Volkswagen financing works
Volkswagen doesn’t list loan terms or interest rates on its website. To learn more about financing terms and incentive offers, you’ll need to speak to the dealership or request a quote online. But although credit and income requirements for financing aren’t disclosed, buyers should expect to show income and employment information when applying for financing.
Buying a Volkswagen
While you won’t find loan amounts or rates listed on the Volkswagen website, you can use its payment estimator to get an idea of the terms that may be available. Volkswagen Credit extends vehicle loans with terms ranging from 12 months to 72 months, and based on credit history and rate availability, your APR may range between 0.9% to 11.99%.
You can apply for financing through Volkswagen Credit by completing an application online. To apply online, you must provide your contact information, date of birth, gross monthly salary, monthly mortgage or rent payment and employer address. You’ll also be asked to name the type of vehicle you want to buy or trade-in. Applicants are notified of the decision through email — if you are preapproved, the email will let you know which documents you’ll need to bring to the dealership.
Leasing a Volkswagen
Based on its payment estimator, Volkswagen Credit typically offers lease terms between 24 months and 48 months. Annual mileage limits range between 10,000 miles and 15,000 miles, based on the terms of the lease contract.
There are benefits to leasing a vehicle instead of financing your purchase. Leasing is a good option if you want a lower monthly payment. You can also avoid some maintenance costs, as new cars come with a warranty that lasts at least three years. Major repairs are usually covered under warranty, which keeps your costs lower.
But there are drawbacks to leasing a car: Since you don’t own the car, you don’t build equity as you make payments. Leases also come with mileage limits, and you’ll be charged for every mile that you go over. With Volkswagen, you can typically expect to see a fee of up to $0.20 per mile for each mile you go over on your lease. Plus, if you end your lease early, you may be charged a cancellation fee.
Volkswagen deals and rebates
Buyers who finance or lease a vehicle through Volkswagen Credit can take advantage of a handful of incentive offers:
- 0% APR Financing Offer on select 2021 models: Qualified buyers may be eligible for 36-month financing with 0% APR on select Volkswagen models.
- Military, Veterans & First Responder Bonus: Eligible members of the military, veterans and first responders may receive a $500 bonus if they finance or lease a new Volkswagen.
- College Graduate Program: Recent graduates can get a $500 bonus when they finance or lease a new Volkswagen through Volkswagen Credit.
- Loyalty Program: If you currently lease your vehicle through Volkswagen Credit, that lease’s disposition fee will be waived when you next lease or purchase a new Volkswagen. Plus, you could also have your security deposit waived.
- First-Time Buyer Program: If this is your first car purchase and you don’t have established credit, Volkswagen’s First-Time Buyer Program may be for you. Buyers who are employed full-time for at least one year may qualify. While your credit history isn’t required under this program, your credit must be in good standing.
Pros and cons of Volkswagen Credit
There are benefits and drawbacks to financing your vehicle through the dealership.
| Pros | Cons |
|---|---|
| Saves time: Financing through the dealership saves time because the dealer files the paperwork on your behalf. | Higher interest rates: Third-party lenders may offer lower APR than the manufacturer. |
| Better deal: Dealers can make more money when you finance through the manufacturer. Added bargaining power can help you negotiate a better price or rate. | Credit history matters: The dealership may have less flexibility to finance your vehicle if your credit scores aren’t high enough. You may need to make a larger down payment or pay a higher interest rate to get approved. |
Alternatives to Volkswagen Credit
Dealerships may charge a higher interest rate than what a third-party lender might offer. To save money, it’s a good idea to shop around for an auto loan before you purchase a new or used car. Banks, credit unions and online lenders may offer lower interest rates and more favorable repayment terms than what you’d find at the dealership.
If you’re strapped for time, shopping around for auto loan alternatives can be tough — but LendingTree makes it easy to get auto loan offers. Just complete the online form, and you can get up to five auto loan offers in just minutes.