Since October, the average tracker interest rate has plunged, from 6.2 percent, to 3.2 percent.

‘£260 a month spare… could equate to a nice new car.’

This is where creative use of manufacturer finance comes in – the demand for which is booming, says VW. Unlike bank finance, auto finance is not saddled by a shortage of cash.

Wheeler points out the new Golf is available with a £199 per month PCP.

‘We’re constantly reminded of the ‘credit crunch’, and many banks nowadays are unwilling to lend customers money to finance a depreciating asset such as a car.

‘But we are experts in motor vehicle finance. It’s what we do and what we’ve always done. We know the risks and we manage them.’

Countering a plunge in customer confidence, due to ‘scare mongering’, will also be key.

‘As long as customers are sensible in managing their finances, there’s no reason why they should fear making a big purchase in what are seen as troubled times.

‘People with a stable job, such as those in the public sector, whose mortgage payments which may well have recently gone down, should take advantage of the economic climate and seize the chance to buy.’

As an example of the customer-tempting deals out there, Wheeler illustrates a typical VW Solutions deal, on a new Volkswagen Golf 1.4 TSI SE 5dr:

Term: 36 months
Mileage: 10,000 a year
35 monthly payments of: £199
First payment fee: £125
Optional final payment: £7230
List price: £15,962
Advance payment from customer: £4,352.77
Amount of credit: £11,609.23
Total amount payable: £18,607.77
Typical APR: 9.7 percent



Transcript of the published artilcle created on 12th March 2009 by Car Dealer Magazine Online