Need a new van? Volkswagen is making a hard pitch for your business as the UK emerges from the coronavirus (COVID-19) lockdown – with a finance offer that has no upfront costs and no repayments for the first three months.
In fact, the first three months are totally free, as VW will cover those costs for you. This is a difference to other ‘payment holiday‘ schemes from rival manufacturers including Ford, Renault and Iveco.
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What is this new finance offer called?
Volkswagen Commercial Vehicles is calling the deal its ‘Back to Work’ finance package, with an offer that it describes as ‘three months on us’. This goes beyond a mere payment holiday, as the payments aren’t deferred, they’re discounted altogether.
The offer applies to new Contract Hire agreements when purchasing a VW van from stock.
Why is Volkswagen doing this?
It says research shows that seven out of 10 customers are worried about their business as a result of the COVID-19 pandemic, and that the new campaign is to help support companies as they prepare to start working again.
It is probably also a great way to clear stock vehicles that VW hasn’t been able to sell while dealerships have been in lockdown.
Which VW vans does the Back to Work offer aply to?
The entire range of Volkswagen vans is available under the scheme – including the new Transporter T6.1 facelift, which only started reaching the UK at the beginning of 2020.
Example pricing given by VW includes £279 per month for a short-wheelbase (SWB) Transporter T28 Startline with the 110hp 2.0-litre TDI diesel engine, or £219 for a Caddy C20 panel van Startline with the 102hp 2.0-litre TDI diesel engine.
Both of those examples are 48-month Contract Hire deals with a 10,000 miles per year agreement, and as mentioned above they have £0 initial rental fee.
What’s the small print?
Full details of terms and conditions can be found on the Volkswagen Commercial Vehicles website. A couple of things do stand out, though.
Firstly, it really does only apply to stock vehicles – so if the van you want isn’t available from stock you are out of luck.
Secondly, the discount amount may vary depending on the contract term. So while a full 48-month contract hire is likely to get the full three months’ free, shorter contract terms ‘may receive a contribution less than the equivalent of three monthly payments.
When does the VW Back to Work offer end?
The deal was originally available on all vans purchased by 30 June 2020 that can be delivered before 31 July 2020. But this has now been extended to orders up until 31 August 2020 that can be delivered before 30 September 2020.
What if I don’t want a Contract Hire deal?
VWCV also has a new ‘Solutions Personal Contract Plan’ offer, that includes a deposit contribution, no repayments for the first three months and interest charged at 3.5% APR.
This isn’t a form of hire, rather a form of purchase, so at the end of the agreement you get the option to return the van (subject to wear and tare, mileage fees, etc), pay the remaining balance (typically known as a balloon payment) and keep the van, or part exchange it against a new model.
Again, full T&Cs can be found on the VW Commercial Vehicles website, and like the Contract Hire deal, the full discount amount applies to 48-month agreements; shorter agreements may get a reduced contribution.
Any other VW van deals I should know about?
All VW van customers have the option to purchase two services for just £99 at the point of purchase at the moment – and that includes anyone taking up the offers outlined above.
Similarly, there’s a £500 Business Pack contribution on the Caddy Startline that’s available in combination with all of the above.
Also read:
>> What is a payment holiday and how do I get one?
>> Ford offering six-month payment holidays to new van buyers
>> Pay nothing for six months on new Iveco Daily vans
>> Renault offering three-month payment holiday on new vans
>> 70 years of the Volkswagen Transporter
>> The history of the Volkswagen Caddy
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