The new car and van market in the United Kingdom is set to achieve 2.7 million registrations in 2007, with Volkswagen Group brands recording a 15% market share – an increase on 2006.

Volkswagen Financial Services (UK) Limited (VWFS), a wholly-owned subsidiary of Volkswagen Financial Services AG, incorporates the Volkswagen Bank (United Kingdom Branch) and Volkswagen Insurance Service (Great Britain) Limited. All of their products are available to over 700 retailers representing seven brands of the Volkswagen Group.

The VWFS portfolio continues to grow year-on-year and currently stands at 268,000 contracts (including 58,000 service agreements). The Solutions (auto-credit) product contributed significantly to this growth as brands and retailers recognised its potential for improved customer retention. Hire Purchase is another option for retail customers with Contract Hire and Lease Purchase products being available to corporate clients. A range of insurance products (motor insurance, GAP Insurance and creditor protection) and service plans are also available.

By working closely with the Volkswagen Group brands, VWFS has achieved a 27% increase in new car and van financing from last year. Despite the turbulent financial marketplace, which included three interest rate rises, the year end forecast is for 100,000 new and used-car and van finance cases which will record an 18% increase on 2006.

Through its strategy of customer acquisition, development and retention, coupled with new product initiatives (such as complimentary seven day drive away insurance and product bundling) and greater customer insight, VWFS in the UK is planning to continue its upward growth.