More than 70 years have passed since the first financial services from Volkswagen came about. Back then – in 1949 – the Volkswagen Group founded "Volkswagen Finanzierungsgesellschaft mbH", later named "V.A.G. Kredit Bank GmbH" and known today as "Volkswagen Bank GmbH". Even though classic automobile financing is still part of the core business of Volkswagen Financial Services, the range of other services provided has expanded massively over recent years and decades.
In addition to pure vehicle financing, today's business areas include leasing, the direct banking business, vehicle-related services such as maintenance contracts or tire services, insurance, fueling and charging solutions, the rental business including car subscriptions, digital parking services and payment solutions. In addition, Volkswagen Financial Services is developing an integrated mobility platform for the brands of the Volkswagen Group to provide customers with quick, easy and digital access to mobility - from minutes, through hours, days, months and years.
The goal is to keep the customer mobile throughout the entire vehicle lifecycle – "The Key to Mobility" is not just a brand promise, but an elementary component of the corporate DNA of Volkswagen Financial Services.
Banking and finance products
The financing of vehicles from the Volkswagen Group brands has been a core business of Volkswagen Financial Services since the establishment of Volkswagen Bank GmbH in 1949. Customers can choose between the traditional full financing and three-way financing – for both new and used vehicles. With three-way financing, they can decide whether to pay off the vehicle, continue financing it, or return it to their trading partner after the agreed contract term. With the classic form of financing, the vehicle belongs to the customer at the end of the agreed contract period after the loan amount has been repaid.
Direct banking through Volkswagen Bank, along with the associated deposit services, is also part of the product offering. In addition, company financing is provided to our dealer partners and, more recently, financing is also available for bicycles, e-bikes, and pedelecs.
Like vehicle financing, leasing has been a core business of Volkswagen Financial Services for many decades. In 1966, Volkswagen AG established VAG Leasing as the first automobile leasing company in Germany, which later changed its name to Volkswagen Leasing GmbH. Today, the company is the largest automobile leasing company in Europe. While leasing has been the dominant procurement method for commercial customers for many years, more and more private customers are also discovering its advantages. For many people nowadays, it is more important to use a vehicle than to actually own it.
With leasing, customers only pay for the use of the vehicle. When signing the leasing contract, they specify the lease term they want and an expected annual mileage limit (mileage leasing). Based on these parameters, along with the vehicle's purchase price, the leasing rate is calculated for the desired vehicle. Customers need not worry about marketing the vehicle at the end of the lease term, as this is taken care of by the dealer partner or by Volkswagen Leasing GmbH.
Leasing conventional bicycles and e-bikes has become part of the business of Volkswagen Financial Services. This is carried out through a joint venture with PON Bikes, one of the world's largest bicycle producers.
Increasingly, people are no longer looking for a car for life, but are instead opting for flexible mobility solutions. As a result, Volkswagen Financial Services are developing an integrated mobility platform for the Volkswagen Group brands, catering to mobility needs ranging from a few minutes to several years. Rental solutions are an important component, and these are provided in close cooperation with the subsidiary EURO-Leasing and the partner company Europcar. For shorter-term mobility needs ranging from one year to one day, customers can utilize both short-term and long-term rentals. As of recently, car subscriptions are also available, allowing customers to switch between various vehicle classes on short notice. In addition, the Euromobil brand offers rental options for the service replacement business of our dealer partners.
Through their subsidiary Greenwheels, Volkswagen Financial Services also offer car-sharing services in the Netherlands.
Insurance and services
Since the foundation of Volkswagen Versicherungsdienst by Volkswagen AG back in 1948, insurance has been a permanent part of the service portfolio of Volkswagen Financial Services. This includes classic partial and fully comprehensive insurance as well as motor vehicle liability insurance, which is offered through a joint venture with Allianz SE.
GAP insurance is also provided, which reimburses the difference between the replacement value and the original purchase price in the event of a total loss or theft of the vehicle. Through warranty insurance, customers can extend coverage for their new cars and young used vehicles beyond the manufacturer's warranty.
Financing or leasing installment insurance is also available. These policies protect customers in cases of personal financial difficulties (such as extended illness or unemployment) and cover the installment payments if they can no longer be made.
Additionally, for our dealer partners, we offer used car warranties and a comprehensive range of products in the area of company motor, property and liability insurance, as well as company pension plans.
As the Volkswagen Group's financial and mobility services provider, Volkswagen Financial Services offer customers a wide range of services to enhance convenience, safety and cost control during vehicle usage.
These include service contracts for tire replacement, maintenance, inspections, and wear-and-tear repairs. With monthly installments, the costs remain predictable and without any surprises at the next service. Extended warranties are also available to secure against unexpected repair costs in the long term.
The used car business is becoming increasingly important for Volkswagen Financial Services in order to tap into additional revenue opportunities. For this reason, the company provides its services not only for new vehicles but also for used ones – from financing and leasing to insurance and services such as maintenance and inspections. Furthermore, Volkswagen Financial Services directly market their off-lease vehicles to their dealer partners, effectively operating as a growing used car dealership themselves.
Currently, every fourth credit or leasing contract in the global portfolio of Volkswagen Financial Services pertains to a used car.
Moreover, in 2017, Volkswagen Financial Services established the brand-independent used car platform heycar. Notable investors such as Volkswagen AG, Allianz, and Renault / Mobilize Financial Services have partnered in that venture. Heycar is currently active in Germany, the UK and France.
Secure and convenient payment for services is an important business area for Volkswagen Financial Services. The focus is on mobile payment applications for parking tickets, car sharing, electricity, fuel, and tolls. In addition, applications cover the rapid payment for services and upgrades (Functions on Demand), which can be activated in the Volkswagen Group's new vehicle generations (In-Car Payments), as well as online shopping on the portals of the Volkswagen Group brands. The goal is to create a unified digital ecosystem for payment services within the Volkswagen Group.
Furthermore, Volkswagen Financial Services provide payment services for public transport companies through their subsidiary LogPay, bringing together mobility providers, system operators, and payment method providers.
Fueling & charging
Through their subsidiary LogPay Financial Services, Volkswagen Financial Services provide comprehensive solutions for the cashless settlement of fueling and charging transactions – now also digitally via app under the name Mobile Fueling. The cards used also serve as service passes for accessing contractually agreed services at workshops. Customers can use the fuel and charge cards to stay mobile at around 50,000 filling stations and 280,000 charging points in more than 30 European countries. For commercial customers in the truck segment, toll processing is also available in nine European countries.
The fleet business has been a core competency of Volkswagen Financial Services for many decades. This encompasses not only vehicle leasing but also additional services that ensure the mobility of the vehicle fleet. Internationally, Volkswagen Financial Services offer fleet services in 41 markets, with harmonized products and processes as well as central contacts for implementing fleet management processes. The offering includes not only the vehicle brands of the Volkswagen Group but also external brands (= multibrand business) in order to provide fully comprehensive services to fleet customers.
Extensive consulting services for the electrification of vehicle fleets are also provided, for example recommendations for the right choice of vehicle, including driving profile analyses, and advice on company charging infrastructure or government subsidies.
The commercial customers of Volkswagen Financial Services include freelancers, skilled craft businesses, small and medium-sized enterprises, and major international corporations, as well as taxi companies, care services, and government agencies.
The goal of Volkswagen Financial Services is to become one of the largest fleet providers in Europe.
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