Compare Volkswagen car loans and financing options

Have you got your eye on a new Volkswagen and want to know what your financing options are? Much like Volkswagen's wide range of vehicles, there are plenty of car loan products on the market, making it easier to find one to suit your individual needs.

Volkswagen is one of Australia’s 10 most popular car brands. The German manufacturer produces affordable, mid-range and luxury vehicles, which tend to be slightly more upmarket than comparable models from other brands.

Volkswagen offers a wide range of vehicles, from hatchbacks, sedans and pick-ups to station wagons, SUVs and vans.

Popular Volkswagen vehicles include:

• Polo 70TSI Trendline ($19,290) - a hatchback with five-speed manual transmission and a 1.0L engine
• Golf 110TSI Golf ($29,350) - a hatchback with six-speed manual transmission and a 1.4L engine
• T-Cross 85TSI Life ($28,390) - a small SUV with seven-speed DSG transmission and a 1.0L engine
• Tiguan 110TSI Life ($47,382) - an SUV with six-speed DSG transmission and a 1.4L engine
• Passat 140TSI Business ($46,590) - a sedan with seven-speed DSG transmission and a 2.0L engine
• Passat Wagon 162TSI Elegance ($53,790) - a station wagon with six-speed DSG transmission and a 2.0L engine
• Amarok V6 Core ($49,590) - a 4WD with six-speed manual transmission and a 3.0L engine

Keep in mind, the prices listed are the manufacturer's recommended retail price (MRRP) and do not include on-road costs. Prices may vary between dealerships and locations.

Volkswagen also offers finance, insurance, servicing and roadside assistance. New vehicles come with a three-year warranty, while there is also a three-year paint warranty – both with unlimited kilometres.

Vehicle information and pricing last updated in February 2019

Volkswagen's own dealer finance offering, Volkswagen Financial Services Australia, provides car finance options for customers, including secured car loans and novated leases. It also offers a Guaranteed Future Value Program in which customers can choose to trade in, retain, or return their vehicle at the end of a one to four year term.

While it can be tempting to simply sign up for finance at the dealership after a successful test drive, buyers who shop around are likely to find better value Volkswagen car loans, given the number of car loan providers in Australia.

RateCity's car loan comparison tables allow borrowers to compare Volkswagen car loans by advertised rate, comparison rate, upfront fees and loan features.

There are a number of features that are important to consider when comparing car loans, including the following:

Interest rates - Comparing interest rates is a reasonable first step to take when shopping for car loans. Just be sure to also factor in fees when you're comparing, as some low interest loans may have higher fees attached.

Loan term - The length of the loan term is the amount of time you will have to repay the borrow amount plus any fees and interest charges payable.

Features - Different loan products offer different features, such as a redraw facility, unlimited extra repayments, or the option to make weekly or fortnightly payments instead of monthly payments.

Fees - Some lenders may only charge fees for special features such as redrawing or repaying the loan early, while others may also have ongoing monthly fees.

Secured vs unsecured - Secured car loans are typically reserved for new cars, or cars that are only several years old. Older cars may not be eligible for a secured car loan, but the maximum age of the car can differ between dealers.

Balloon payment -A balloon payment is a predetermined lump sum that may be payable at the end of a typically shorter loan term.

Novated leasing - If you're looking for an alternative to a standard car loan, a novated lease, which is paid for out of your pre-tax income, may be worth considering.

Business car loans - If you are a business owner, and intend to use your new Volkswagen primarily for business purposes, some other options you could consider include a commercial hire purchase or a chattel mortgage.

If you know which Volkswagen model you want to buy, chances are you'll already have a good idea of how much you need to borrow. The next step is to ensure you're able to afford the repayments on your car loan.

RateCity's car loan calculator can provide you with an estimate of your monthly repayments according to your preferred loan amount, interest rate and loan term. Once you have a rough idea of how much your repayments could be, calculate whether they fit comfortably within your budget.

Like any personal finance product, it's important to read the eligibility criteria, the product disclosure statement, and any disclaimers that may apply before submitting an application for your preferred car finance product.