Though not quite a luxury auto brand, Volkswagen — which means the “people’s car” in German — offers European-made vehicles at mid-range 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 score a bonus.
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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. However, you may be able to get a secured personal loan or an auto title loan using your car as collateral as well.
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 Finance. 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.
Leasing through Volkswagen Finance. 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. Deals will depend on where you live and the model you’re looking to lease.
Aside from Volkswagen Finance’s special rates and programs, a dealership may offer its own deals including intro APRs (Annual Percentage Rates), 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.
Compare car loans to finance a Volkswagen
Representative example: Rebecca buys a Volkswagen
Rebecca, a resident of B.C., wants to replace her old car with a 2020 Platinum Gray Metallic Volkswagen Jetta priced at $24,750.00. The trade-in value of Rebecca’s old car is $4,500.00, and she makes an additional 15% deposit of $3,715.00 on the vehicle.
Rebecca applies for a loan from her bank to cover the outstanding amount on the car plus 12% GST/PST. Because of her solid credit history, she is approved for financing with competitive terms. In addition to the cost of her loan, she also pays approximately $50.00 to register the vehicle with the Insurance Corporation of British Columbia (ICBC) – this includes the cost of a license plate, insurance decal, vehicle permit and the registration fee.
Cost of new vehicle
Auto loan (term loan)
Interest rate (APR)
4.00% origination fee ($758.60) $0.00 application fee (waived by dealership)
$365.77 monthly or $168.62 biweekly
Total loan cost
$21,946.20 with monthly payments or $21,920.60 with biweekly payments
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.
Does Volkswagen offer special discounts or programs?
VW has a number of special programs available for returning customers, graduates, people who drive with assistive devices and newcomers to Canada. All programs are subject to credit approval. Contact your dealership for full terms and conditions.
Existing Volkswagen customers may be eligible to receive a 0.5% discount on their next lease or finance agreement for a new car. Buyers must be current Volkswagen customers or must have financed or leased a Volkswagen within the past 90 days. If applicable, you can combine this offer with the Graduate Program rebate of up to $500 for even more savings. The Loyalty Program discount only applies to new agreements – you can’t apply it to an agreement for a vehicle you already have.
Students who graduated within 24 months of applying for this discount may be eligible to receive a rebate of up to $500. Recipients must be recent graduates from a Canadian or US university (Bachelor, Master and Doctoral), a Canadian community college with a two-year program, or a CEGEP program of 2 or 3 years (DEC), or a recognized nursing, military or police school. This program offers buyers lower and more flexible payments options as well as the opportunity to lease or finance an VW right out of school.
If you need to drive with assistive devices, you’re in luck. Volkswagen will contribute up to $1,000 towards the purchase and installation of lift equipment, carriers, hand controls, pedal extensions or other assistance equipment on any eligible model you purchase or lease from the company.
The following options are available to buyers who are new to Canada:
Foreign Business Professional. This program is available for fully employed visitors with an International Assignments in Canada, a Federal Skilled Worker (SW1) permit or a Canadian Professional Designation (e.g. Lawyer, Dentist, Engineer, Pharmacist). Buyers can purchase, lease or finance a new, certified pre-owned or pre-owned Volkswagen for as long as they have a work permit or visa. No down payment is required, and there is no maximum financing limit. To be eligible, you need a valid Canadian driver’s license and a letter of employment, including job title and income.
Foreign Investor. This program is available to you if you are a permanent resident of Canada with an Investor (NV5), Entrepreneur (EN5) or Provincial Nominee (PV2) status. Buyers can purchase, lease or finance a new, certified pre-owned or pre-owned Volkswagen for as long as they have a work permit or visa. A down payment of 20% of the transaction price is required, and there is a finance limit of $125,000. To be eligible, you need to show your work permit, visa or proof of permanent residency status, a valid Canadian driver’s license, a residence verification, and one personal reference. You also need to have a clean credit history.
Foreign Student. Foreign students registered in a full-time program at an accredited Canadian College or University are eligible for this program. Students can lease a new or certified pre-owned Volkswagen for as long as they have their student visa. A down payment of 20% of the transaction price is required, and there is a finance limit of $75,000. To be eligible, students must show their student visa and have a clean credit history as well as a valid Canadian driver’s license, an official letter from their school’s registrar confirming both full-time enrollment and the end date of their studies and 3 months of bank statements.
Foreign Worker. If you’re a temporary resident or permanent resident of Canada who has been admitted into the country on a work permit, then you are eligible for this program. Buyers can lease a new or certified pre-owned Volkswagen for as long as they have their work permit or visa. A down payment of 20% of the transaction price is required, and there is a finance limit of $50,000. Required documentation includes a work permit or visa, a clean credit history, a valid Canadian driver’s license, one personal reference and a letter of employment, including hire date, job title and income.
How much will a new Volkswagen cost me?
The cost of your next VW will vary based on your negotiation skills and where you live. However, you can use the manufacturer’s suggested retail price (MSRP) to gauge how much you may need to borrow and to guide your negotiations when you visit a dealer.
Mid-Size Family SUV
Does a new Volkswagen come with a warranty?
New-vehicle limited warranty
Brand new VW vehicles come with a limited warrant as well as complimentary 24-hour, year-round roadside assistance for the earlier of 4-year or 80,000 km.
There is a limited warranty on the powertrain for 5 years or 100,000 km. New vehicles also come with a corrosion perforation warranty for 12 years/200,000 km (2017 models) or 7 years/unlimited kilometres (2018 models).
Certified Pre-Owned limited warranty
VW offers 2 different warranties for its Certified Pre-Owned vehicles. Both warranties honour any remaining New Vehicle warranty coverage that still exists on the vehicle until such coverage expires.
Under the Assurance Program, drivers get complimentary 24-hour, year-round roadside assistance for 6 months, 3 months of SiriusXM satellite radio and a CARFAX vehicle history report.
The Premium Assurance Program is similar, except that drivers get roadside assistance for 2 years or 40,000 km (whichever comes first) and the New Vehicle warranty is extended for 2 years or 40,000 km (whichever comes first) beyond its original expiry date.
Volkswagen Parts warranty
Original VW parts are backed by a 2-year/unlimited kilometre warranty from the date of purchase. (Some parts like batteries have longer warranties.) Coverage does not extend to parts used in repairs that are covered under either the New Vehicle warranty or the Certified Pre-Owned warranty.
Original-equipment batteries are fully covered for parts and labour for 3 years.
Accessories are covered by a warranty according to the following terms if bought at the same time as a new VW, coverage matches the New Vehicle warranty period of 4 years or 80,000 km, whichever is earlier; if bought during the New Vehicle warranty period, coverage is for the remainder of the New Vehicle warranty or 2 years/unlimited kilometres, whichever is longer; if bought at the same time as a Certified Pre-Owned VW, coverage matches the Certified Pre-Owned warranty period of 2 years or 40,000 km, whichever is earlier, as long as the driver has chosen the Premium Assurance program.
Warranty information above is accurate as of January 2020
If you’re looking to get behind the wheel of a new or pre-owned VW, you’ve got plenty of financing options to choose from. What’s more, as a Volkswagen driver, you’ll enjoy great warranty coverage and support services including complimentary roadside assistance. If you can’t wait to hit the road behind the wheel of a VW, then financing or leasing through Volkswagen Finance is probably your fastest option. Remember, however, that you may be able to score a better rate with a car loan from a bank or online lender.
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 the remainder of Volkswagen’s robust New Vehicle warranty.
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.
Eventually. If you take out a secured car loan, your lender has a lien (a prioritized claim) against your vehicle in case you aren’t able to make repayments. But once you finish paying off the loan, the lien is removed and you own the car outright.
Stacie Hurst is an editor at Finder, specializing in loans, banking products and money transfers. She has a Bachelor of Arts in Psychology and Writing, and she completed one year of law school in the United States before deciding to pursue a career in the publishing industry. When not working, she can usually be found messing around with games, photography or floral arrangements in memory of her former days as a flower shop assistant.
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