Volkswagen, like many other automakers, is looking to aid those negatively impacted by the coronavirus pandemic. People are losing their jobs, and the German automaker is looking to provide some relief. Today, the company announced it'd waive up to six months of car payments for those who've lost their jobs due to the coronavirus along with a new financing program for most certified pre-owned VW models.
VW will provide relief of up to $750 a month for six months, though there are a few restrictions. The program applies to customers who purchased a new vehicle through Volkswagen Credit and are receiving unemployment benefits. The program isn't available in New York, and the unemployment must occur for economic reasons after the first 90-days of ownership. Those seeking relief must also have been employed full-time for at least 12 consecutive weeks before the unemployment.
The automaker also has a new program to make purchasing pre-owned VW models easier, with zero-percent APR financing for 60 months available for most models for qualified customers. VW will offer the incentive until June 30, 2020. The new relief programs come after VW announced earlier this month that qualified new buyers could delay their first month's payment for up to 180 days. Zero-percent APR is also available for up to 72 months for most new VW vehicles.
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"This global pandemic and the economic uncertainty that came with it has many of us facing difficult choices and we don't want purchasing a new vehicle to be one of them," said Scott Keogh, president and CEO of VW Group of America, in the announcement. VW encourages existing VW Credit customers to check their accounts for additional relief options, including deferring payments for up to 90 days without penalty. Several other automakers are offering their own relief programs to both existing and new customers.
Volkswagen expands payment relief options for new customers
Herndon, VA — Volkswagen of America and Volkswagen Credit (VCI) today announced an expansion of the Community-Driven Promise including new payment assistance for eligible customers who lose their job due to economic reasons.
For qualified customers who purchase a new vehicle and lose their jobs due to economic reasons, VCI will waive up to six months of payments, up to $750 per month, providing some financial relief in these uncertain times.
“This global pandemic and the economic uncertainty that came with it has many of us facing difficult choices and we don’t want purchasing a new vehicle to be one of them," said Scott Keogh, president and CEO, Volkswagen Group of America. "We want our customers to know that if the unexpected happens, we're here to help.”
This job loss payment assistance applies to customers who purchase a new vehicle and finance the purchase through Volkswagen Credit, and is not currently available in New York. To be eligible, customers must be receiving unemployment benefits, and the unemployment must occur for economic reasons after the first 90-days of ownership. Customers must also have been employed on a full-time basis at least 12 consecutive weeks prior to the unemployment. The benefit expires 12 months from date of purchase. Other conditions and limitations apply. For more details about the job loss payment assistance component of the Community-Driven Promise, visit VW.com/the-community-driven-promise/.
Also as part of the Community-Driven Promise announced April 3, Volkswagen is giving highly qualified new buyers the option of delaying their first payment for up to 180 days and is offering zero-percent APR financing for up to 72 months for most new vehicles. The program is set to run through April 30.
Volkswagen is also making it easier to purchase a Volkswagen Certified Pre-Owned vehicle with zero percent APR financing for 60 months for highly qualified customers through VCI. This offer ends June 30, 2020.
Existing VCI customers who need help are strongly encouraged to access and manage their account online 24/7 at vwcredit.com to see what options may be available. Volkswagen and Volkswagen Credit (VCI) will defer payments for up to 90 days for existing VCI customers affected by the economic crisis. No late fees will be charged, but interest will continue to accrue for loan accounts. Lease extensions will also be available for up to six months with payment reduction rebates for customers who extend their lease three months or more.
All of these relief options come on top of Volkswagen’s existing four-years or 50,000-mile (whichever occurs first), New Vehicle Limited Warranty and the Carefree Maintenance program. That program offers two years or 20,000 miles (whichever occurs first) of scheduled maintenance at no additional charge.