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Volkswagen Financial Services: Difference between revisions
Volkswagen Financial Services (view source)
Revision as of 17:52, 16 December 2022
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Q&A | Q&A | ||
=== | ===='''Q1: How is demand going to continue in 2023? This will influence the number of contracts for Financial Services.'''==== | ||
Answer: For the first three quarters of 2022 demand for automotive financial services was buoyant due to key interest rates in the main currency areas, which have remained low for now. The rise in interest rates in Q3 has so far had a minor impact on the financial services market. | Answer: For the first three quarters of 2022 demand for automotive financial services was buoyant due to key interest rates in the main currency areas, which have remained low for now. The rise in interest rates in Q3 has so far had a minor impact on the financial services market. | ||
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The positive trend in the financing of used vehicles continued in the first nine months of 2022; In particular, the sale of after-sales products such as servicing, maintenance and spare parts agreements increased. | The positive trend in the financing of used vehicles continued in the first nine months of 2022; In particular, the sale of after-sales products such as servicing, maintenance and spare parts agreements increased. | ||
==== '''Q2: Are there any big risks in the current economic environment? Clients not being able to pay''' ==== | |||
'''Q2: Are there any big risks in the current economic environment? Clients not being able to pay''' | |||
As stated before, the rise in interest rates in Q3 has so far had a minor impact on the financial services market. | As stated before, the rise in interest rates in Q3 has so far had a minor impact on the financial services market. | ||
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The provision for credit risks was raised substantially to take account of credit risks that have arisen from crisis situations and the resulting uncertainty about the global geopolitical situation. | The provision for credit risks was raised substantially to take account of credit risks that have arisen from crisis situations and the resulting uncertainty about the global geopolitical situation. | ||
==== '''Q3: If number of contracts was to stay the same, will they become less valuable to the company? Let's say demand is going down, prices go down, then so will the amount of money needed for financing a new car with VW Financial Services?''' ==== | |||
'''Q3: If number of contracts was to stay the same, will they become less valuable to the company? Let's say demand is going down, prices go down, then so will the amount of money needed for financing a new car with VW Financial Services?''' | |||
I don't think this will be a problem, as I don't seea a reduction in the number of contracts. As supply is going to improve slowly over the next few quarters, I don't think the amount of money needed for financing will decrease. Even though less money will be needed for financing as demand is going to ease, supply growth will offset the inbalance. | I don't think this will be a problem, as I don't seea a reduction in the number of contracts. As supply is going to improve slowly over the next few quarters, I don't think the amount of money needed for financing will decrease. Even though less money will be needed for financing as demand is going to ease, supply growth will offset the inbalance. | ||
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In the period from January to September 2022, the Financial Services Division’s sales revenue amounted to €34.8 billion, 3.2% more than in the same period of the previous year. Increase in sales revenue for the leasing business. | In the period from January to September 2022, the Financial Services Division’s sales revenue amounted to €34.8 billion, 3.2% more than in the same period of the previous year. Increase in sales revenue for the leasing business. | ||
==== '''Q4: Which % of cars in VW Financial are lease vehicles and needs to be resold? → Is there a Problem if used car prices drop?''' ==== | |||
'''Q4: Which % of cars in VW Financial are lease vehicles and needs to be resold? → Is there a Problem if used car prices drop?''' | |||
In Q3 2022 VW CC, they said that there's an increased share of leasing contracts in the fleet business. Even if used car prices drop this may not be a problem. As most cars would be cheaper, most of the cars that VW sells after their lease will get sold more easily because of lower prices. | In Q3 2022 VW CC, they said that there's an increased share of leasing contracts in the fleet business. Even if used car prices drop this may not be a problem. As most cars would be cheaper, most of the cars that VW sells after their lease will get sold more easily because of lower prices. | ||
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On average, car loan term is 6 years. Borrowers under 30 are struggling with their car loans | On average, car loan term is 6 years. Borrowers under 30 are struggling with their car loans | ||
==== '''Q5: How fast are refinancing conditions for VW Financial worsening and what is the impact of this going to be?''' ==== | |||
'''Q5: How fast are refinancing conditions for VW Financial worsening and what is the impact of this going to be?''' | |||
For fiscal year 2022,the Management Board of Volkswagen Leasing GmbH expects the IFRS operating result to improve significantly compared with the previous year. | For fiscal year 2022,the Management Board of Volkswagen Leasing GmbH expects the IFRS operating result to improve significantly compared with the previous year. | ||