Car Loan for Volkswagen 2023
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Updated on Feb 16, 2022
When considering ways to finance your Volkswagen, you can source a traditional loan from a bank or credit union or acquire a loan through a dealership with Volkswagen Financial Services. You may favor a dealership loan for its convenience, but you might end up saving a little cash and have a better customer experience with a bank or credit union.
Volkswagen has gained traction over the years for producing stylish, durable, and well-performing vehicles. On your search for the perfect car loan, you want terms that reflect the same quality and value.
It’s nice to have choices when it comes to financing, but how do you go about deciding the best choice for a Volkswagen loan? Car insurance shopping app and financing specialist Jerry is here to decode your options.
How to get a Volkswagen car loan
Whether you’re searching for a used Golf or a mint-condition Cc Vr6 4Motion, obtaining an auto loan for a VW is a pretty straightforward process. You’ll first need to check your credit score, then compare multiple lenders on their rates and terms, and then you should try to get preapproved for a loan.
Check your credit
Before you do anything else, check your credit score because it will impact your interest rate and the terms of your loan. A credit score that’s 660 and above is considered good when you’re qualifying for a car loan.
If you have a credit score under 660, you’ll have an easier time getting a loan through a VW dealership. Volkswagen Financial Services will approve applicants who can demonstrate financial responsibility through income verification, personal references, or a co-applicant.
Check out the table below to see the average APR and monthly repayment for various Volkswagen vehicles depending on your credit score:
|Car Make||Average Annual Interest Rate||Average Monthly Payment|
After you figure out the type of loans you’re eligible for, you should choose a lender. You can select a loan through your bank, a credit union, or the dealership if they participate in Volkswagen Financial Services.
You should compare offers from three lenders at a minimum before settling on a loan. Survey your options for:
- Low APR: 4.93% at most
- Short loan term: Under 60 months
- Reasonable monthly payments: 10 to 15% of your monthly income maximum
Don’t get so caught up in the financial aspects that you forget another essential element of the loan process—finding excellent customer service. A lender may look promising due to high approval odds and affordable payments, but if they have low customer ratings or are impossible to get in touch with, it can make the process much more stressful.
Having a preapproval for your auto loan will enable you to work out a better loan when you sign the loan agreement. VW Financial Services accepts applicants for an online preapproval process.
To get preapproved online, you’ll need to provide your lender with the following information on your application:
- Driver’s license or another form of photo identification
- Social Security number
- Employment records
- Proof of income (pay stubs, tax statement, etc.)
Key Takeaway To get an auto loan for a Volkswagen, start by checking your credit rating. Then, compare lenders (at least 3) and try to get preapproved so you can cinch a better loan.
Average loan term for a Volkswagen car loan
An important part of securing financing for your VW is picking a loan term. It is customary to see a six-year (72 months) loan term in the US. However, just because it’s common doesn’t make it the best possible loan term.
Try to negotiate for a 60-month repayment term or less if you’re able. Finding a lender who will agree to a shorter loan term could help you pay off your loan quicker and pay less for interest. While your monthly payment sums will be larger, having a short loan term means the total amount you’re paying will be less than a longer loan term.
VW Financial Services provides loan terms from 12 to 72 months if you decide to get your loan through the dealership. A great advantage to getting a VW car loan is that you don’t have to worry about a prepayment penalty**. This means you can pay off your loan early without having to pay additional fees to do so.
To get a sense of what your monthly payment and interest rate could be depending on your loan term, check out the table below.
|Loan Terms||Average Annual Interest Rate||Average Monthly Payment|
Finding a Volkswagen car loan in your state
Your auto loan payment and interest rate will depend on your state and local demographics. Try to find a lender that has a strong grasp of the local financial landscape and can present you with the lowest possible APR based on your credit rating.
See the table below to get an idea of what you might pay for a Volkswagen car loan in your state.
|Credit Rating||Average Annual Interest Rate||Average Monthly Payment|
Volkswagen car loans: new vs. used
You can get a loan for a new or used Volkswagen, but your offers will hinge on your car’s age. For example, Volkswagen Financial Services only provides financial assistance for new and certified pre-owned VW vehicles.
If you’re hoping to finance an older Volkswagen, you’ll have better luck for a loan approval through your bank or a credit union. You’ll probably notice a higher APR for used vehicles, but a higher interest rate will likely be easier to take on with a smaller overall loan amount.
Curious to see how your car’s age could affect your loan? Here’s a breakdown of how your monthly payment and APR might look based on your Volkswagen’s model year.
|Car Year||Average Annual Interest Rate||Average Monthly Payment|
How to calculate the costs for a Volkswagen car loan
Regardless of the type of VW you want to finance, your monthly payment amount and APR depend entirely on your loan term, loan amount, credit rating, and demographics. Try Jerry’s car loan calculator to uncover what you might pay with a VW car loan.
|Average Annual Interest Rate||Average Monthly Payment|
Save money on Volkswagen insurance with Jerry
However your Volkswagen is financed, Jerry is here to help you find the lowest rate on your car insurance. Jerry is a licensed broker, a car insurance comparison shopper, and an expert insurance advice-giver all wrapped into one convenient app that can travel from the bank to the dealership.
After you download the app, just answer a few questions, and Jerry will shop and compare quotes from over 50 leading insurance companies. In minutes, you can have affordable quotes at your fingertips without having to lift a pencil or make a call. Once you’ve determined your best rate, Jerry can even help you cancel your old policy.
Having some spare change in the bank is never a bad thing when shopping for a new Volkswagen. The average Jerry user saves $887 per year on car insurance—start your car insurance savings today!
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