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Mr Joern Kurzrock, Chairman of Volkswagen Finance India, believes there is more to the Mobility Max scheme than just easy monthly payments. Launched last month, it is targeted at the buyers of the Polo and Vento models.
“On an average, customers hold cars for about 3-4 years after which they are attracted to new ones. The way I see it, they get three years of mobility for the Polo and Vento at a competitive price,” Mr Kurzrock told Business Line .
When this 36-month period comes to an end, the buyer is given the option of either retaining his car, after the final bulk payment, or trading it for another model. From VW Finance's point of view, this is among the big differentiators from other schemes where the loan tenure is longer.
“Three years is just fine for customers to want to buy another car by which time they go through the VW experience,” Mr Kurzrock adds. In the process, this will be a big fillip to the company's used car business, Das Weld Auto, which will roll out in phases through this year.
‘most competitive'
According to Mr Neeraj Garg, Member of Board and Director, Volkswagen Passenger Cars, Mobility Max is the “most competitive” car finance scheme in the country. “It is an innovative product which goes with our brand image. The customer is assured of top convenience and a distinct financial advantage,” he says.
Mr Kurzrock says a lot of thought went into preparing Mobility Max. “When designing such products, we look at the potential of the market and the buyer base. The idea is to show that these cars are affordable and proof of our trust in them,” he adds.
For the moment, the scheme is confined to these two models though it could well be extended to other brands within the VW Group, which include Skoda and Audi. “No decision has yet been taken yet on going to our other group brands with Mobility Max,” Mr Kurzrock says.
The Polo has seven versions ranging from Rs 4.7 to Rs 7.42 lakh (average ex-showroom) while the Vento's six options are priced between Rs 7.25 lakh and Rs 10.26 lakh. Each of these models has diesel versions which are expected to account for a lion's share of sales. In Mobility Max, the buyer ends up paying Rs 13,855 a month for the Vento and Rs 9,779 for the Polo. The EMIs also factor in insurance, maintenance and the extended warranty.
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