Volkswagen’s Financial Services division launches HeyCar to tap Germany’s burgeoning used-car market

Unlike its competitors, consumers will not have to see advertisements on HeyCar while searching for the best deals in the used car market in Germany.

On Thursday, Volkswagen’s Financial Services division stated, having created an online platform, dubbed HeyCar, it has launched it to tap the growing pre-owned car market in Germany.

Volkswagen’s Financial Services aims to double its double its portfolio of credit, leasing and insurance contracts to 30 million units by 2025.

95% of Germany’s high-margin used cars market is dominated by by the autoscout24.de and the mobile.de platforms.

According to analysts, VW is ramping up its used-car sales strategy to counter falling value of sales for its diesel cars in Germany.

In June, as per a report prepared by Schwacke, a data provider belonging to Autovista Group’s German division, there has been an increased preference for petrol-powered used cars in Germany, with pre-owned diesel cars’ residual values dipping below those of petrol.

VW’s Dahlheim however said, the launch of HeyCar “has absolutely nothing to do” with the falling values of diesel residuals.

Incidentally, Volkswagen Financial Services, accounted for nearly 14% of the VW group’s 2016 operating profit of $17 billion (14.6 billion euros); the division handles dealer and customer financing and the German group’s banking and leasing business.

However, its operations exclude the Porsche and the Scania brands as well as the Porsche Holding Salzburg distributor.

With HeyCar already having 50,000 vehicles in its database, the platform aims to triple this amount by next year. As per Christian Dahlheim, the division’s head of sales, it ultimately aims to have 300,000 listing in the platform.

“We want to grow and tap into new customer segments,” said Anthony Bandmann, chief executive of Volkswagen Leasing GmbH, a unit of the finance division.

Unlike its peers, autoscout24.de and mobile.de, HeyCar will be free of ads; furthermore it will also feature non-VW brand dealers, said Dahlheim.

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