Volkswagen Credit (VCI) and Audi Financial Services (AFS) recently kicked off a “United We Drive” plan to support dealers with flexible financing solutions.
“We're continuously in dialogue with our dealers,” says Kevin Kelly, VW Credit Inc. President. “Together we've been adjusting to the challenges of this historic economy. The ‘United We Drive’ plan helps VW and Audi dealerships compete and win in tough times. We're committed to their success and ours.”
Eligible dealers are offered four key features:
Increased Advances: VCI and AFS credit analysts will have the flexibility to advance an additional 10% on new vehicles for qualified, returning customers who purchase or lease a new vehicle. This advance flexibility is designed to help dealers close deals with loyal customers who qualify.
Floorplan Assistance: Through June 30, both VCI and AFS will provide floorplan reimbursement to wholesale dealers, for up to 30 days on select models. VCI is offering this program on each '09 Routan minivan for which a dealer writes a VCI finance contract. AFS is providing the identical program to its dealers on each '09 Audi A6 and Audi A8. This reimbursement program will help participating dealerships improve their bottom lines.
Waiver of New Vehicle Curtailments: VCI and AFS will waive curtailments on new VW and Audi models for the balance of 2009, for VCI and AFS Wholesale dealers in good standing. This waiver provides improved cash flow during the upcoming model year build-out period.
Floorplan Insurance Premium Waiver: VCI and AFS will waive one month's Floorplan Insurance premium for those dealers who are insured through the VCI and AFS Wholesale Insurance Program. The premium waiver will directly benefit dealer profit and loss statements.
“‘United We Drive’ is part of a series of initiatives VCI and AFS are implementing in conjunction with Audi of America and Volkswagen of America to strengthen the competitive position of VW and Audi dealers,” says Kelly. “We made a number of program decisions in the first quarter to support our dealers during these challenging times.”
This year, VCI and AFS are offering industry-leading Certified Pre-Owned APR programs, featuring rates as low as 0.90%. They have also extended Special New Vehicle APR rates to all dealers at the 66-month term. In addition, VCI and AFS have continued core partnership benefits for Wholesale dealers, including increased advances and Special APR's on extended term financing to 72 months.
VCI and AFS leadership last month hosted a series of town hall-like meetings with VW and Audi dealers and general managers to discuss current credit policies and respond to dealer challenges.