When considering ways to finance your Volkswagen, you can source a traditional loan from a bank or credit union or acquire a loan through a dealership with Volkswagen Financial Services. You may favor a dealership loan for its convenience, but you might end up saving a little cash and have a better customer experience with a bank or credit union.
Volkswagen has gained traction over the years for producing stylish, durable, and well-performing vehicles. On your search for the perfect car loan, you want terms that reflect the same quality and value.
How to get a Volkswagen car loan
Whether you’re searching for a used Golf or a mint-condition Cc Vr6 4Motion, obtaining an auto loan for a VW is a pretty straightforward process. You’ll first need to check your credit score, then compare multiple lenders on their rates and terms, and then you should try to get preapproved for a loan.
Check your credit
Before you do anything else, check your credit score because it will impact your interest rate and the terms of your loan. A credit score that’s 660 and above is considered good when you’re qualifying for a car loan.
If you have a credit score under 660, you’ll have an easier time getting a loan through a VW dealership. Volkswagen Financial Services will approve applicants who can demonstrate financial responsibility through income verification, personal references, or a co-applicant.
Check out the table below to see the average APR and monthly repayment for various Volkswagen vehicles depending on your credit score:
| Credit score | Average Annual interest rate | Average monthly payment |
|---|---|---|
| Any | 8.43 | $362 |
| Fair | 16.34 | $413 |
| Good | 8.4 | $361 |
| Very good | 5.1 | $341 |
| Excellent | 3.88 | $333 |
Compare lenders
After you figure out the type of loans you’re eligible for, you should choose a lender. You can select a loan through your bank, a credit union, or the dealership if they participate in Volkswagen Financial Services.
You should compare offers from three lenders at a minimum before settling on a loan. Survey your options for:
- Low APR: 4.93% at most
- Short loan term: Under 60 months
- Reasonable monthly payments: 10 to 15% of your monthly income maximum
Don’t get so caught up in the financial aspects that you forget another essential element of the loan process—finding excellent customer service. A lender may look promising due to high approval odds and affordable payments, but if they have low customer ratings or are impossible to get in touch with, it can make the process much more stressful.
Get pre-approved
Having a pre-approval for your auto loan will enable you to work out a better loan when you sign the loan agreement. VW Financial Services accepts applicants for an online preapproval process.
To get preapproved online, you’ll need to provide your lender with the following information on your application:
- Driver’s license or another form of photo identification
- Social Security number
- Employment records
- Proof of income (pay stubs, tax statement, etc.)
Key TakeawayTo get an auto loan for a Volkswagen, start by checking your credit rating. Then, compare lenders (at least 3) and try to get preapproved so you can cinch a better loan.
Average loan term for a Volkswagen car loan
An important part of securing financing for your VW is picking a loan term. It is customary to see a six-year (72 months) loan term in the US. However, just because it’s common doesn’t make it the best possible loan term.
Try to negotiate for a 60-month repayment term or less if you’re able. Finding a lender who will agree to a shorter loan term could help you pay off your loan quicker and pay less for interest. While your monthly payment sums will be larger, having a short loan term means the total amount you’re paying will be less than a longer loan term.
VW Financial Services provides loan terms from 12 to 72 months if you decide to get your loan through the dealership. A great advantage to getting a VW car loan is that you don’t have to worry about a prepayment penalty. This means you can pay off your loan early without having to pay additional fees to do so.
To get a sense of what your monthly payment and interest rate could be depending on your loan terms with any credit score, see the table below.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 11.2 | $697 |
| 36 | 8.61 | $470 |
| 48 | 8.11 | $363 |
| 60 | 8.04 | $301 |
| 72 | 8.37 | $262 |
If you’re approved for a loan and you have fair credit, you’ll likely have slightly higher interest rates and monthly payments, as seen below.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 20.61 | $762 |
| 36 | 16.64 | $521 |
| 48 | 15.77 | $411 |
| 60 | 15.68 | $350 |
| 72 | 16.43 | $317 |
With good credit, you’ll be able to secure more favorable interest rates, and your monthly payments will be lower.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 11.51 | $696 |
| 36 | 8.39 | $468 |
| 48 | 7.97 | $362 |
| 60 | 7.94 | $300 |
| 72 | 8.58 | $262 |
If you have excellent credit, you’ll likely qualify for the lowest interest rates, and your monthly payments will be lower than average.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 5.58 | $660 |
| 36 | 4.11 | $442 |
| 48 | 3.79 | $336 |
| 60 | 3.68 | $273 |
| 72 | 3.59 | $231 |
Finding a Volkswagen car loan in your state
Your auto loan payment and interest rate will depend on your state and local demographics. Try to find a lender that has a strong grasp of the local financial landscape and can present you with the lowest possible APR based on your credit rating.
See the table below to get an idea of what you might pay for a Volkswagen car loan in your state.
| Credit Rating | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| Fair | 16.34 | $413 |
| Good | 8.4 | $361 |
| Very Good | 5.1 | $341 |
| Excellent | 3.88 | $333 |
Learn more: Minimum car insurance required in your state: What you need to know
Volkswagen car loans: new vs. used
You can get a loan for a new or used Volkswagen, but your offers will hinge on your car’s age. For example, Volkswagen Financial Services only provides financial assistance for new and certified pre-owned VW vehicles.
If you’re hoping to finance an older Volkswagen, you’ll have better luck for a loan approval through your bank or a credit union. You’ll probably notice a higher APR for used vehicles, but a higher interest rate will likely be easier to take on with a smaller overall loan amount.
Curious to see how your car’s age could affect your loan? Here’s a breakdown of how your monthly payment and APR might look based on your Volkswagen’s model year.
| Car Year | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 2021 | 7.66 | $305 |
| 2020 | 8.12 | $309 |
| 2019 | 8.21 | $309 |
| 2018 | 7.96 | $307 |
| 2017 | 8.15 | $308 |
| 2016 | 8.29 | $309 |
| 2015 | 8.48 | $311 |
| 2014 | 8.45 | $379 |
| 2013 | 8.52 | $380 |
| 2012 | 9.43 | $511 |
2011 | 9.43 | $511 |
| 2010 | 9.43 | $511 |
Maxine Boyko is an insurance writer with over five years of experience researching and writing for regulatory compliance and product marketing companies. Maxine’s mission is to help car owners better understand the inner workings of their vehicles by providing straightforward, simple explanations of otherwise-complicated aspects of car ownership and maintenance. Maxine has written over 350 articles for Jerry on topics ranging from state driving regulations to model-specific maintenance issues. Before joining Jerry, Maxine spent five years in the food and beverage manufacturing industry while working on a B.A. in psychology.
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars. Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.
