Volkswagen finance options

Considering buying a new or used Volkswagen using car finance? Volkswagen finance options include secured car loans, unsecured personal loans, dealer finance, novated leases and chattel mortgages.

Compare all your Volkswagen finance options here.

Different Volkswagen finance options

There are six main Volkswagen financing options to choose from. These include:

• Secured car loan. If you want a loan with a super competitive rate, you can use your Volkswagen as collateral against a secured car loan. Rates for these loans generally range between 4.91% and 10.88% p.a. If you're buying a new Volkswagen (or one under 10 years old), you should be able to use it as security. However, you can't use the loan funds for anything other than the car purchase.
• Unsecured personal loan. You could also use an unsecured personal loan to purchase a Volkswagen. This is an option to consider if the vehicle isn't eligible to be used as security (i.e. it's too old or is a classic car) or you want to use some of the loan for another purpose, like paying for insurance or even to consolidate debt. Rates are higher for these car loans, usually between 5.49% and 25.99% p.a. Depending on the lender and your credit history, you can typically borrow from $2,000 up to $75,000. That would secure you the keys to many new or used Volkswagen models.
• Dealership finance. Volkswagen Financial Services Australia offers several finance options, ranging from promotional offers on specific cars, to business/commercial and fleet finance, as well as personal finance. The in-house finance department can arrange personal loans and salary packaging for novated leases.
• Novated lease. If you want to get a Volkswagen through your job, you might consider a novated lease. This is a three-way agreement between your employer, a finance company and yourself. The advantage of this purchase option is the monthly car repayments are taken from your pre-tax income. After consulting a tax professional, you may find this saves you money overall.
• Chattel mortgage. A chattel mortgage is like a secured car loan for a business. If you're going to use your Volkswagen for at least 50% business use, a chattel mortgage is another finance option. Under this arrangement, a lender pays for the vehicle, you own it, but the lender has a registered interest in the Volkswagen. If you use cash basis accounting, you can claim back GST on the purchase price too. This arrangement is an option if you're purchasing a Volkswagen for your business.
• Commercial hire purchase. A commercial hire purchase is really just a lease agreement. A financier buys the Volkswagen you want, then rents it back to you. You'll never own the VW, but you do get to use it. As the name implies, this is for business users only. It's only at the end of the contract when you choose to settle the residual value that you'll take ownership of the vehicle.

How much will a Volkswagen cost to run?

Running costs vary from model to model. The small hatch Volkswagen Polo (from $20,490) is the most fuel-efficient Volkswagen (as of March 2021, according to the Green Vehicle Guide) and should be the cheapest to run (according to the RACV). The Green Vehicle Guide estimates that the VW Polo 70 TSI Trendline manual model would use $1,026 worth of fuel to cover 14,000km annually. That's based on the assumption that two-thirds of the driving is in urban areas. The RACV running cost study indicates it would cost around $212.06 monthly to pay for rego, insurance, membership, servicing and tyres. Add on the above fuel costs ($85.50 monthly) and a VW Polo owner would pay approximately $297.56 ($3,570.72 annually) each month.

Meanwhile, a commercial model like the VW Amarok TDi420 Core is obviously going to cost more, thanks to its powerful turbo diesel engine, heavier duty construction and carrying capacity. For this model, the driveaway price is $50,289. The Green Vehicle Guide estimates this Volkswagen ute would use $1,516 of diesel per year to cover 14,000km, 66% of that on urban roads. Rego, insurance, membership, servicing and tyres for the Amarok totals $301.77 a month, according to the RACV. Fuel adds $126.33, bringing the monthly total to $428.10 and annual running costs of $5,137.24.

Be aware, these figures are only estimates and actual real-world costs will differ depending on how far you drive and other variables. They do not include loan repayments. You can use our car loan repayment calculator to help you work out the amount you'll need to pay out per month for a new or used Volkswagen.

How to evaluate your Volkswagen finance options

These are some of the main factors you should pay attention to when evaluating different Volkswagen finance options:

• The interest rate. Remember to compare interest rates. To get an idea of the true cost of the loan, look at the comparison rate. This includes the interest rate and fees. The lower the interest rate, the less the finance will cost.
• Fees. Check whether your finance option is subject to an upfront application fee or monthly service charge. Fees add to the cost of your loan, especially if you're taking one out over a longer period. Do your research and know what you'll pay before signing any contracts.
• Is there repayment flexibility? Lenders allow you to tailor your repayments to your cash flow, whether this is monthly, fortnightly or weekly. If you're able to make additional repayments, check if you can also redraw these should you need to.
• Loan term. Taking out a Volkswagen loan over a longer period will reduce the amount you pay, but you'll spend longer paying interest – meaning the car loan costs you more. Shorter loans are more expensive (because the loan is divided over fewer months) but can save you hundreds of dollars. You want to strike a balance between affordability and cost, so the loan term is really important.
• Balloon payments. This is an amount that is deducted from your principal (the amount you borrow), usually $5,000 or more. You are required to pay the balloon (also called the residual) at the end of your loan term. While this lowers your monthly repayments, it is a large chunk of cash to have to find at the end of your loan term. Definitely consider this when deciding if a Volkswagen loan with a balloon payment is right for you.

Compare Volkswagen car loans

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Name	Interest Rate (p.a.)	Comp. Rate (p.a.)	Application Fee	Monthly Fee	Monthly Repayment
Simplify New Car Loan Fixed1 - 7 Years $10,000 - $300,000	Interest Rate (p.a.) 6.19% to 18%	Comp. Rate (p.a.) 6.6% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $927.29	Go to siteMore Info Compare
IMB New Car Loan Fixed1 - 7 Years $2,000 - $125,000	Interest Rate (p.a.) 6.24%	Comp. Rate (p.a.) 6.59%	Application Fee $274.78	Monthly Fee $0	Monthly Repayment $924.31	Go to siteMore Info Compare	You'll receive a fixed rate of 6.24% p.a. A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one that's up to two years old.
OurMoneyMarket New Car Loan ($5,000-$100,000) Fixed1 - 7 Years $5,000 - $100,000	Interest Rate (p.a.) 6.57% to 18.99%	Comp. Rate (p.a.) 7.19% to 21.78%	Application Fee $250 min.	Monthly Fee $0	Monthly Repayment $934.23	Go to siteMore Info Compare
Stratton Finance New Car Loan Fixed1 - 7 Years $10,000 - $300,000	Interest Rate (p.a.) 6.52% to 18%	Comp. Rate (p.a.) 6.95% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $931.85	Go to siteMore Info Compare	You'll receive a fixed rate from 6.52% p.a. depending on the lender you are approved with. Apply for up to $300,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
RACV New Car Loans Fixed1 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 7.29% to 16.99%	Comp. Rate (p.a.) 8% to 17.77%	Application Fee $499	Monthly Fee $0	Monthly Repayment $945.77	Go to siteMore Info Compare	You'll receive a fixed rate from 7.29% p.a. A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
loans.com.au - New/Demo - Variable Rate Variable3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 6.24% to 7.39%	Comp. Rate (p.a.) 7.37% to 8.5%	Application Fee $400	Monthly Fee $8	Monthly Repayment $936.14	Go to siteMore Info Compare
OurMoneyMarket Used Car Loan ($5,000-$100,000) Fixed1 - 7 Years $5,000 - $100,000	Interest Rate (p.a.) 6.57% to 18.99%	Comp. Rate (p.a.) 7.19% to 21.78%	Application Fee $250 min.	Monthly Fee $0	Monthly Repayment $934.23	Go to siteMore Info Compare
Simplify Used Car Loan Fixed1 - 7 Years $10,000 - $300,000	Interest Rate (p.a.) 6.19% to 18%	Comp. Rate (p.a.) 6.6% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $927.29	Go to siteMore Info Compare
Stratton Finance Used Car Loan Fixed1 - 7 Years $10,000 - $300,000	Interest Rate (p.a.) 6.52% to 18%	Comp. Rate (p.a.) 6.95% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $931.85	Go to siteMore Info Compare	You'll receive a fixed rate loan from 6.52% p.a. with a comparison rate of 6.95% p.a. A used car loan of up to $300,000 with quick approval times and balloon payment options.
loans.com.au - Variable Rate Used Car < 5 years Variable3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 7.39% to 7.39%	Comp. Rate (p.a.) 8.52% to 8.64%	Application Fee $400	Monthly Fee $8	Monthly Repayment $952.09	Go to siteMore Info Compare
RACV Used Car Loans Fixed1 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 8.49% to 16.99%	Comp. Rate (p.a.) 9.21% to 17.77%	Application Fee $499	Monthly Fee $0	Monthly Repayment $962.64	Go to siteMore Info Compare	You'll receive a fixed rate from 8.49% p.a. Benefit from no ongoing fees, 5-hour approval and a 21-day satisfaction guarantee. Interest rate discounts for members.
loans.com.au - Fixed Rate Used Car < 3 years Fixed3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 7.59% to 8.79%	Comp. Rate (p.a.) 8.72% to 10.04%	Application Fee $400	Monthly Fee $8	Monthly Repayment $954.89	Go to siteMore Info Compare
Latitude Variable Rate Personal Loan Variable2 - 7 Years $5,000 -	Interest Rate (p.a.) 9.49% to 29.99%	Comp. Rate (p.a.) 10.37% to 30.69%	Application Fee $0	Monthly Fee $13	Monthly Repayment $973.85	Go to siteMore Info Compare	Special Finder offer: $395 establishment fee waived for approved personal loan applications submitted through Finder. Latitude may withdraw offer at any time. T&Cs apply.

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Volkswagen history

Volkswagen is now the second largest car manufacturer in the world, behind Toyota. Volkswagen's colossal Wolfsburg plant is the largest car manufacturing facility worldwide.

Volkswagen arose in pre-WWII Germany, fulfilling a niche in the German car market. At the time, few could afford a car, with perhaps only 1 in 50 families owning an automobile. Volkswagen literally translates to "people's car".

The first car it produced became the iconic Beetle. The design is originally credited to Béla Barényi, a Hungarian engineer. Ferdinand Porsche later took over. The Beetle was tested in a wind tunnel normally used for aircraft development.

Since then, the company has grown and produced some of the most well-known car models ever built. They include the revolutionary Golf hatchback, the popular VW Combi van, the Passat and the plucky VW Polo hatch.

A ute came along in 2010, badged as the Amarok. The Amarok joined other commercial vehicles from the brand, such as the VW Transporter and Crafter vans.

Volkswagen bought a large portion of fellow compatriot Audi in 1964, increasing its stake to the point where it effectively owns the luxury carmaker outright. VW continued a similar strategy, buying German sportscar manufacture Porsche in 2009. Other VW Group-owned marques include Bentley, Bugatti, Ducati, Lamborghini, Seat and Skoda, as well as truck makers Scania and MAN.

Volkswagen uses its manufacturing might to create modular platforms that are shared across multiple vehicle lines and brands.

Soon, the company is launching its first battery electric vehicles, with the ID.3 and ID.4 the first expected to launch.

Volkswagen Financial Services says it's been operating for 60 years. In addition to providing finance options for Volkswagens in Australia, it also covers Audi, Bentley, Ducati, Jaguar, Lamborghini, Land Rover and Skoda.

Volkswagen Australia range

In Australia, Volkswagen markets 12 models, in several variations and body styles. They are:

Have more questions about Volkswagen finance options?

Should I get a new or used Volkswagen?

A new Volkswagen is guaranteed to come with no faults (thanks to a factory warranty), you will have access to dealership finance and secured car finance, plus other extras. As a bonus, you get the latest car tech. However, new cars lose their value quickly (depreciation) and they will be more expensive than a used vehicle. If you buy a used vehicle you may get a better model for your budget simply because it's used, and the value of the car won't depreciate as quickly. However, you're opening yourself up to possible faults with the vehicle and, depending on the car's age, you may not be able to get a secured car loan.

What happens if I default on a secured car loan?

Your lender has the right to sell your vehicle if you are unable to pay your secured car loan.

Will I own the Volkswagen if I use a loan?

You will own the vehicle from the outset if you take out a secured car loan, unsecured personal loan, chattel mortgage (the vehicle will just have a mortgage over it) or dealership finance. You will not own the vehicle if you opt for a novated lease.

Volkswagen reviews

Not completely sure if you want a Volkswagen? Read our car reviews and use our Finder Score to help you make a decision.

Financial hardship

If you're struggling with financial hardship as a result of the COVID-19 pandemic, read our Coronavirus: What to do if you can't afford your car repayments guide.

Volkswagen models and ratings

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Name	Product AUFCL-CAR	Number of seats	ANCAP rating	Price (from)	Finder Score	Review
Volkswagen Golf		5 seats	5 stars	$32,790	84.4%	Read Review	loading Fetching your data...
Volkswagen Polo		5 seats	5 stars	$18,790	79%	Read Review	loading Fetching your data...
Volkswagen Amarok		5 seats	5 stars	$38,490	85%	Read Review	loading Fetching your data...

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Written by

Ben Gribbin

Writer

Ben Gribbin is an automotive writer at Finder. He is a life-long car enthusiast, bringing many years of experience working with and writing about cars. During his time, Ben has been a freelance writer, editor and reviewer for a number of leading publications across the UK. He was voted the Guild of Motoring Writers Breakthrough Blogger in 2015. See full bio