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.

If you liked the article, share on:

Topics: volvo

Comments

Recommended

To jump onto the next step of going greener, Porsche announced that they will be getting rid of the last few vehicles that have diesel-fueled engines in their lineup, so...
by - February 22, 2018
Back in 1988, the Bavarians of BMW M decided to chop the roof off one of their cars to create a high performance M3 convertible. And now, the automakers feel...
by - February 22, 2018
If you are currently on a ski trip at Méribel, a town in the French Alps, you might want to take some time away from the slopes to check out...
by - February 21, 2018
Last year during the 2017 Frankfurt Motor Show, SEAT offered a list of name options that they will use for their all new three-row SUV. While three of those names...
by - February 21, 2018
Matthew McConaughey, under the persona of Detective Rust Cohle, is not anymore the lone endorser of Lincoln cars. And that is because the automaker decided to get more brand ambassadors...
by - February 21, 2018
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