VWFS Partners with Wells Fargo, Exits Auto Loan Market
Published: September 18th, 2024.
Volkswagen Financial Services (VWFS) has entered a multi-year agreement with Wells Fargo, making the bank the preferred financing provider for Volkswagen, Audi, and Ducati in the United States. Starting in April 2025, customers visiting VW and Audi dealerships can finance their purchases through Wells Fargo, with Ducati dealerships following shortly after.
This strategic partnership marks a significant shift for VWFS, which will transition away from directly providing purchase loans and instead focus on leasing and innovative mobility solutions. Despite this change, VWFS will continue to service existing customer contracts, ensuring a seamless experience for current clients.
Why the shift?
Collaborating with Wells Fargo is part of Volkswagen’s broader strategy to adapt to evolving market conditions. Pablo Di Si, President and CEO of Volkswagen Group of America, highlighted that the partnership allows VW to support its brands and customers better. “By aligning ourselves to respond to evolving market dynamics through this partnership, we’re able to more effectively support the needs of Volkswagen, Audi, and Ducati while providing tremendous opportunities for Volkswagen Financial Services in the U.S. market in the future,” Di Si said.
The cooperation will impact over 1,000 dealerships nationwide, including 600 Volkswagen, 300 Audi, and 130 Ducati locations. Wells Fargo will bring their extensive retail financial services experience to enhance the customer purchase experience, promising innovative financing options and improved services.
What this means for VWFS
With this new direction, VWFS will pivot towards consumer leasing and usage-based products, including mobility solutions. Ernst Jan van Eijkelenburg, President and CEO of VW Credit, noted the strengths of the partnership, emphasizing that VWFS will retain their automotive expertise and continue supporting brands, dealers, and customers. Meanwhile, Wells Fargo will leverage their capabilities to offer a broader range of retail solutions.
This move aligns with VW’s focus on flexibility and innovation as they navigate the complex and competitive U.S. automotive market. The agreement reflects the company’s commitment to refining their approach and strengthening their foothold by collaborating with established financial institutions like Wells Fargo.
What should you do now?
If you’re considering purchasing a Volkswagen, Audi, or Ducati vehicle in the U.S., this partnership may impact your financing options starting in 2025. Here’s what you should keep in mind:
- Explore your financing options: Beginning in April 2025, Wells Fargo will be the primary financing provider at VW, Audi, and Ducati dealerships. It’s advisable to review their loan terms, interest rates, and financing plans as you shop for your next vehicle
- Current customers remain supported: If you have an existing loan or lease through VWFS, your contract will continue to be serviced without any changes. For those nearing the end of their contracts, transitioning to a new financing plan with Wells Fargo might offer new opportunities or advantages
- Stay informed about leasing options: VWFS will focus on leasing and mobility services, which could provide attractive alternatives if you’re looking for more flexible vehicle ownership options
- Consult your dealer: Dealerships will be your primary point of contact when navigating these changes. They can provide guidance on the new financing options available and help you decide what works best for your needs
Overall, this partnership between VWFS and Wells Fargo represents a major shift in the U.S. automotive financing landscape. Whether you’re a new or returning customer, understanding these changes will help you make informed decisions about your vehicle purchase and financing options.