Volkswagen Korea criticized for offering faster delivery to car loan customers
SEOUL, Sep 29 (Korea Bizwire) — Criticism is mounting over Volkswagen Korea allegedly delivering its all-new model faster to customers who obtain financing from its auto finance service with an annual interest rate of over 7%.
According to industry sources, official Volkswagen Korea dealerships inform customers who reserve the ID.4 all-electric SUV that they can take delivery of the models faster than others if they use Volkswagen Financial Services.
For those who have recourse to auto credit, the dealers promise faster delivery regardless of the number of waits which is fixed in the order of reservations.
For those who buy an ID.4 model using loans from Volkswagen Financial Services, the 60-month interest rate is estimated at 7.7%, much higher than credit card payment plans, which have a annual interest rate of approximately 4%.
Worse, unlike other automakers who usually offer a discount on the price of the car if customers use their own financial products, Volkswagen Korea does not offer any discount for the ID.4.
The German automaker’s South Korean unit claimed its financial products had nothing to do with the delivery date.
JS Shin ([email protected])