Volvo Car Financial Services to be launched this year

Article by Anita Panait, on February 14, 2012

Volvo Cars of North America is commencing operations of its new finance arm, Volvo Car Financial Services, this year. Backed by funding from Bank of America, Volvo Car Financial Services will be a wholly owned subsidiary of Volvo Car Corp. and will be headquartered in Rockleigh, N.J. The captive finance arm is expected by experts to start operations within six months, with the commercial loan products at the frontline.

The captive is expected to make available consumer loan and lease products by the end of the year. "Launching a true captive finance arm is the most important step we will make this year to support our dealer network and customers," Volvo Cars CEO John Maloney said in a statement, adding that it is a key initiative in the company’s long-term growth plan.

The captive finance arm will employ a team of sales representatives to directly support retailers. The finance arm will offer retail financing and leasing for new and used Volvos at both standard market rates and at promotional rates supported by Volvo Cars of North America.

Volvo Car Financial Services also offers co-branded commercial financing products like inventory floor plan, working capital loans and real estate loans. Volvo and Bank of America currently have a framework agreement and are expected to sign contracts in the coming weeks.

Under the deal, Volvo Car Financial Services will license Bank of America's proprietary underwriting and risk-based pricing technology to support the credit process. However, the finance arm will have a separate credit policy and staff.

The deal also grants Bank of America Merrill Lynch rights to become the exclusive provider for certain Volvo Car Financial Services automotive loan and lease securitizations. The creation of the Volvo Car Financial Services signifies the fulfillment of a promise that Volvo made to its U.S. retailers, who had been asking for a captive financial unit that offers leases and loans.

Topics: volvo

If you liked the article, share on:

Comments

Recommended

As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 2017
We expected to see the BMW i8 Roadster at last month’s 2017 Frankfurt Motor Show, but it never made an appearance. So the question on fans’ lips now is when...
by - October 16, 2017
Jaguar has just released the first official image of its newest offering, the new Jaguar XEL. Essentially the long-wheelbase version of the Jaguar XE compact sedan, the new Jaguar XEL...
by - October 14, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries