After almost a whole year when BMW commenced its pre-owned cars business, another German giant Volkswagen is all set to step into the same which would eventually ease out the process of buying a Volkswagen product. For this very purpose the brand had applied for a license and the Reserve Band Of India has permitted it to start off with its Non-Banking Finance Company (NBFC).
With the help of this new subsidiary the brand will start financing pre-owned cars by as early as 2012 and for the same, it plans to invest an appreciable amount of Rs.120 crore In India.
As being reported by Hindustan Times, Volkswagen Finance India Board Chairman Joern Achim Kurzrock said, “We have received the license from RBI to start our NBFC. We will start financing pre-owned cars from January 2012.” He added, “India is one of the fastest-growing economies, Volkswagen Finance wants to position itself in the market as a mobility provider,” Further he mentioned that the sole aim of this financial arm is to support customers while looking for a pre-owned car which would eventually boost the Volkswagen Group’s sales.
Existing major players like Maruti Suzuki, Hyundai, Mahindra & Mahindra, Mercedes-Benz and BMW have already forayed into this business with establishments named as Maruti Suzuki True Value, Mahindra First Choice, Hyundai Advantage, Mercedes-Benz Proven and BMW Premium Selection and the name of Volkswagen’s would come anytime soon.
Volkswagen Financial Services (VWF) is the dedicated subsidiary for providing financial services for Skoda, Audi and Volkswagen Itself and actively functions in 38 countries and after receiving the license from RBI, the financial arm will start its operation from March–end onwards.