Next month, VW Credit will cease to offer balloon loans, leases on certified used vehicles and will cease offering 84-month loans on new vehicles, Automotive News reports.
In a letter sent to dealers outlining the cuts, president of VW Credit Kevin Kelly and vice president of sales and marketing Horst Meima said the changes, effective January 6, are in place to "minimize severity of future losses" in a letter to dealers outlining the plans.
Other changes include the requirement of larger down payments from credit challenged customers and the elimination of financing for non-VW vehicles.
Source: Automotive News (Subscription required)