Volkswagen Financial Services UK (VWFS) says it has been driving the UK’s renaissance with older vehicles after announcing it has financed a record 100,000 used cars so far this year.
The group activated over 10,000 used finance cases in July alone and is now financing every other used car sold through its retailer network.
These figures mean that VFSUK has seen significant annual growth over the past 12 months and expects this trend to continue accelerating into the second half of the year.
A key factor behind this performance was its second-hand car campaign, which offered customers a £250 deposit contribution – including the cost of two service plans.
Mike Todd, CEO at Volkswagen Financial Services UK, said: “Our Used Car campaign has helped us produce compelling offers that help customers with the overall affordability of quality used cars, with a single monthly payment, at a time when the cost of living crisis has tightened many people’s budgets.”
The UK’s used car market experienced unprecedented growth earlier this year, fuelled by the shortage of new cars brought about by supply chain bottlenecks caused by the pandemic and global semiconductor shortage.
Despite industry forecasts suggesting the market is cooling, second-hand car values are expected to remain resilient.
Volkswagen Financial Services UK also attributes its half-year success to a refocused technology strategy that has expanded its reach on its retailer partners’ online platforms.
Furthermore, with ambitious plans for growth in HY2, the car finance provider has expanded the parameters on the age of the vehicles it can fund, as well as optimising channels in its franchised dealer partners’ wider used car businesses.