Volkswagen finance Australia: What you need to know
Getting finance for a Volkswagen is fairly straightforward. There are two main options. You can apply for a loan directly through the dealership with Volkswagen Financial Services Australia, or you can get a car loan from a bank or lender.
There may also be a third option — a novated lease under a salary sacrifice arrangement whereby you make your car loan repayments from your pre-tax salary through your employer. Not all jobs or businesses offer this benefit.
Choosing the right vehicle finance option for your financial situation is just as important as choosing the right car. Ultimately, you’ll want the best deal on both. That means finding a competitive price and interest rate.
The interest rate is typically expressed as an annual percentage rate (APR). A lower rate will reduce your monthly repayments and the total amount owing over the full loan term. Keep in mind that even a percentage point difference in your car loan interest rate can mean spending significantly more, especially if you’re buying a top-of-the-range Volkswagen model.
Volkswagen finance options at a glance
- Finance for a Volkswagen Golf, Polo, T-Roc, Amarok, and more
- Secured and unsecured car loans
- Volkswagen novated lease
- Business car loan & finance lease
- Borrow up to $150,000
- Fixed or variable interest rate
- Loan terms from 1 - 7 years
- Flexible repayment options
- Pre-approval available with select lenders
Volkswagen finance rates compared
Estimated vehicle cost | Volkswagen Polo (70TSI Life) drive away from $30,151 |
|---|---|
Monthly repayment at 6% p.a. | $583 |
Monthly repayment at 8% p.a. | $611 |
Estimated vehicle cost | Volkswagen T-Roc (110TSI Style) drive away from $39,990 |
Monthly repayment at 6% p.a. | $773 |
Monthly repayment at 8% p.a. | $811 |
Estimated vehicle cost | Volkswagen Golf (110TSI Life) drive away from $40,990 |
Monthly repayment at 6% p.a. | $792 |
Monthly repayment at 8% p.a. | $831 |
Estimated vehicle cost | Volkswagen Tiguan (162TSI Elegance) drive away from $60,932 |
Monthly repayment at 6% p.a. | $1,178 |
Monthly repayment at 8% p.a. | $1,235 |
Estimated vehicle cost | Volkswagen Amarok (Style 2.0 TDI500) drive away from $75,098 |
Monthly repayment at 6% p.a. | $1,452 |
Monthly repayment at 8% p.a. | $1,523 |
Estimated vehicle cost | Volkswagen Touareg (210TDI Elegance) drive away from $117,896 |
Monthly repayment at 6% p.a. | $2,279 |
Monthly repayment at 8% p.a. | $2,391 |
| Estimated vehicle cost | Monthly repayment at 6% p.a. | Monthly repayment at 8% p.a. |
|---|---|---|
Volkswagen Polo (70TSI Life) drive away from $30,151 | $583 | $611 |
Volkswagen T-Roc (110TSI Style) drive away from $39,990 | $773 | $811 |
Volkswagen Golf (110TSI Life) drive away from $40,990 | $792 | $831 |
Volkswagen Tiguan (162TSI Elegance) drive away from $60,932 | $1,178 | $1,235 |
Volkswagen Amarok (Style 2.0 TDI500) drive away from $75,098 | $1,452 | $1,523 |
Volkswagen Touareg (210TDI Elegance) drive away from $117,896 | $2,279 | $2,391 |
How to get the best deal on Volkswagen finance
Getting the best Volkswagen finance deal means securing a loan with the lowest overall cost. That’s often the product with the lowest car loan interest rate advertised, but there are caveats to keep in mind.
To get the best Volkswagen finance deal overall, it’s important to compare options based on a few different factors:
Your personalised interest rate
This is the actual interest rate you’ll be paying on your Volkswagen finance, and not always the one advertised. This will be calculated by the lender based on your application — factoring in your credit score, deposit (if any) and the Volkswagen model you’re buying.
Volkswagen finance fees
Fees can hike up the cost of financing your car, so pay attention to costs you’ll be charged up-front like application/establishment fees, as well as ongoing fees and potential penalties for early or missed repayments.
The finance term
Get a shorter term on your Volkswagen finance if you can. This will reduce your interest over the life of the loan, but monthly repayments will be higher. A longer-term loan will mean smaller monthly repayments, but you’ll pay more interest over the life of the loan.
Repayment options
Making extra repayments on your Volkswagen finance and repaying the loan early (without penalties applying) could save you money in interest.
Volkswagen finance with balloon payment
Volkswagen financing has balloon payment options, which means making smaller regular repayments but paying a larger lump sum at the end of the loan (called a balloon payment). Make sure you understand the total cost when comparing options, including the balloon payment.
Am I eligible for Volkswagen finance?
The lending and eligibility criteria for Volkswagen car finance will vary from lender to lender. But the standard car finance requirements with a lot of providers are:
- You must be at least 18 years of age
- You must be an Australian citizen or permanent resident
- You must have a regular source of income to cover the repayments
- You meet the lender’s additional lending criteria (e.g. they will check your credit score)
How to apply for Volkswagen finance
Here’s a quick overview of the process for applying for finance to buy a Volkswagen car:
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Compare tailored Volkswagen car loan quotes
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Choose your best deal
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Apply for finance with the lender
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Provide documents to support your application
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The lender will assess your application
If your application is approved, the lender will either grant you a car loan pre-approval up to an agreed amount to shop for a Volkswagen with a pre-approved budget, or final approval if you have already decided on the model you want to buy. It’s worth noting that Volkswagen dealership finance does not always offer car loan pre-approval.
Options for financing a Volkswagen
1
Secured vs unsecured Volkswagen car finance
A secured car loan for your Volkswagen will usually be cheaper than other types of financing, such as an unsecured car loan. Secured finance is less risky for lenders because the car purchased is used as collateral — this additional security means lower interest rates. However, if you can’t repay the loan, the lender could repossess your Volkswagen and sell it to cover its costs.
2
Used Volkswagen finance
For borrowers looking to buy a second-hand Volkswagen, finance options will likely work slightly differently. You won’t get the very lowest car loan interest rates, which are generally only available for new cars.
Interest rates on finance for used cars are higher as they pose more risk to the lender if the value of the vehicle is not enough to secure the loan amount.
3
Volkswagen novated lease
A novated lease is an increasingly popular way to finance a Volkswagen. With a novated lease you can finance a new or used Volkswagen for personal use (and cover car running costs) through your employer using your pre-tax salary. This can bring significant potential tax savings for Volkswagen drivers.
You can finance Volkswagen electric models, such as those in the ID. range, with further tax savings thanks to a generous additional incentive for electric vehicle novated leases.
4
Volkswagen business finance options
You can get commercial finance for a Volkswagen you’re buying to use for business purposes more than 50% of the time. You could be eligible for a business car loan (also known as a chattel mortgage) which is essentially the same as a secured car loan but for a business vehicle. There are also finance lease options available for businesses that want to finance a Volkswagen that way.
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