How to finance a Volkswagen

Though not quite a luxury auto brand, Volkswagen — which means “people’s car” in German — offers European-made vehicles at midrange prices. If you’re in the market for a new or preowned VW, you have quite a few financing options to consider. And you might even qualify for one of the manufacturer’s special buying programs to save on fees or even score a bonus.

How can I finance a Volkswagen?

Got your heart set on a new VW, but not sure how you’re going to pay for it? You’ve got options. If you have time to shop around, consider taking out a car loan or personal loan from a bank, credit union or online lender. A car loan usually comes with more favorable rates and terms than a personal loan, since your loan is secured by the car you’re purchasing.

Another option is to finance or lease your car directly through Volkswagen itself. While this is usually faster than going through a bank or online lender, it may not be the most cost effective.

• Financing with Volkswagen Credit. Volkswagen offers financing directly through its authorized dealers. The special rates offered will vary based on the car you’re looking to buy and where you live. In the past, we saw incentives that included APRs ranging from 0% to 1.9% for up to five years and cashback bonuses of up to $1,000.*
• Leasing through Volkswagen Credit. If you like to switch up your car every few years, you might want to consider leasing. Essentially, you drive your new VW for a set number of years and miles, then return it at the end of your term or buy out the lease. While deals will depend on where you live and the model you’re looking to lease, in the past we saw offers to lease a 2018 Passat for $189 a month for three years with $2,999 due at signing.*

Aside from Volkswagen Credit’s special rates and programs, a dealership may offer its own deals including intro APRs, low down payments or special trade-in options. As with all loans, the rates and terms you qualify for will depend on your credit score and financial situation.

*Rates as of October 24, 2018.

Compare car loans to finance a Volkswagen

Does Volkswagen offer special discounts or programs?

If you’re a recent college grad, business owner or first-time buyer, you may be able to score a discount by financing or leasing your new car through Volkswagen Credit. Some of its special programs include:

• College graduate program. Did you graduate in the last two years? Set to earn your diploma in the next six months? You may qualify for a $500 bonus when you purchase or lease a new VW.
• First-time buyer program. Volkswagen makes it easier for individuals with limited credit history to finance a new or certified preowned VW.

• Loyalty program. Have you leased a car through Volkswagen Credit in the past? Get rewarded by not having to pay the disposition fee and security deposit on your next lease. Or if you choose to purchase your next car instead, it’ll waive the disposition fee off your current lease.
• Corporate program. Business owners can lease or finance a corporate vehicle through Volkswagen, though you’ll need to visit a dealership to learn more about eligibility requirements.
• Foreign business professionals program. Doing business in the US and looking to finance or lease a new car during your stay? Volkswagen may be able to help. You’ll need to make at least $45,000 a year and be working in the US on an employment visa to be eligible.

How much will a new Volkswagen cost me?

The cost of your next VW will vary based on your negotiating skills and where you live. However, you can use the manufacturer suggested retail price (MSRP) to gauge how much you may need to borrow — which could be as little as $18,545 to as much as $38,845 or more.

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Car insurance costs that come with driving a Volkswagen

Does a new Volkswagen come with a warranty?

Volkswagen offers its customers a 6-year, 72,000-mile limited warranty. And don’t worry if you’re not the first owner of the car — if the warranty hasn’t expired, it’s transferable to you. Some models, specifically electric cars, may come with a different warranty.

Bottom line

If you’re looking to get behind the wheel of a new or preowned VW, you’ve got plenty of financing options to choose from. While financing or leasing through Volkswagen Credit is probably your fastest option, you may be able to score a better rate with a car loan from a bank or online lender.

Ready to get started? Check out our guide to car loans to learn how it all works and compare more lenders.

Frequently asked questions

• Should I get a new or used Volkswagen?

  It depends on your needs. A new VW comes with all of the modern bells and whistles, but will quickly lose value once you drive it off the lot. On the other hand, a used model may be a little less up to date, but you won’t lose as much to depreciation and you may still have access to Volkswagen’s robust warranty.

• What happens if I default on a secured car loan?

  If you default, your lender has the ability to repossess your car and sell it to pay off your debt. And if your vehicle isn’t worth the full amount of your loan, you may be on the hook for paying the difference.

• Will I own my car if I use a car loan?

  Eventually. If you take out a secured car loan, your lender has a lien against your vehicle in case you aren’t able to make repayments. But once you finish paying off the loan, that lien gets removed and you own the car outright.

_{Image source: shutterstock and Volkswagen’s official page}