This photo provided by Volkswagen Korea shows the all-electric ID.4 SUV.
SEOUL, Sept. 29 (Korea Bizwire) — Criticism is mounting over Volkswagen Korea, which is allegedly delivering its brand-new model faster to customers who obtain financing from its auto finance service with an annual interest rate of more than 7 percent.
According to industry sources, Volkswagen Korea’s official dealers are informing customers who make reservations for the all-electric ID.4 SUV that they can take delivery of the models faster than others if they use Volkswagen Financial Services.
For those who use auto loans, the dealers promise faster delivery regardless of the waiting number that is set in the order of reservations.
For those purchasing an ID.4 model using Volkswagen Financial Services loans, the 60-month interest rate is estimated at 7.7 percent, far higher than credit card installment plans, which have an annual interest rate of about 4 percent.
Worse, unlike other car manufacturers that, in general, offer a discount on the car price if customers use their own financial products, Volkswagen Korea offers no discount for the ID.4.
The South Korean unit of the German carmaker claimed that its financial products have nothing to do with the date of delivery.
J. S. Shin (js_shin@koreabizwire.com)
