Despite many issues with motor loans, a few car companies and lenders are remaining profitable in this sector. One such motor loan success story is Volkswagen, that has actually seen a rise in sales. Many are seeing changes in the motor loan market and stating that things may not be as bad as originally thought, at least for some lenders and for a few car companies, but whether this is widespread remains to be seen.
“We put our success down to the fact that we have more available funds and can move faster than other financial organisations,” said Volkswagen’s managing director Graham Wheeler. “Long-term planning means the credit crunch is not affecting our lending abilities.”
Tim Moss of MoneySupermarket stated, “Firstly, personal loans are extremely hard to get at the moment, but with car finance, your loan is secured against the metal, so it’s a lot less risky for the company. Secondly, while people used to turn their noses up at car finance because they could get a loan for 6.5 per cent somewhere else, they’re now going away and either realising that car finance is cheaper than any personal loan they can get, or their only option.”
Related reading: Motor Loans
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