Financial Services Volkswagen -

Title Suggestion

"Beyond the Car: Volkswagen Financial Services as a Strategic Profit Center and Mobility Enabler"

1. Retail and Dealer Financing

The most visible aspect of the division is retail financing. When you walk into a VW dealership and are offered a lease or a loan, the entity behind that offer is likely Financial Services Volkswagen.

• Installment Loans: Fixed-rate loans for purchasing new or used vehicles.
• Leasing: Offering low monthly payments with the option to return or buy the car at the end of the term.
• Dealer Funding: Providing dealerships with the liquidity to maintain large inventories of un-sold cars.

3. Mobility Solutions

This is the fastest-growing pillar. Recognizing that "ownership" is changing, VWFS invests in and manages:

• WeShare: VW’s free-floating car-sharing service (similar to Car2Go).
• Parking Apps: Digital solutions to find and pay for parking.
• Fleet Management: Tools for businesses to manage hundreds of vehicles efficiently.

4.4. Credit Risk & Economic Sensitivity

• Historically low default rates due to prime customer base.
• However, exposure to corporate fleets (40% of portfolio) vulnerable during logistics/energy shocks.
• Stress testing (2022–2023) showed VWFS remains resilient due to geographical diversification and low LTV (loan-to-value ~70%).