Get a VW up! for £82 a month

VW up!
18 Nov, 2011 12:12pm Andrew English

Euro-only, three-year VW up! deal covers all but fuel costs and is open to all ages

Fancy leasing a new VW up! for as little as the cost of a city car tyre every month? That’s the astonishing deal being offered in Germany for the 10,000 Euro (£7,995) runaround.

Auto Express has discovered the VW up! will be leased in its home country for just 95 Euros (£82) a month to drivers of all ages. That includes road tax, servicing, breakdown assistance, warranty and comprehensive insurance. The three-year-deal doesn’t even require a deposit. And VW’s British bosses plan to offer a similar package here.

“All you have to do is put fuel in it,” VW marketing boss Luca de Meo told Auto Express. Crucially, he said the offer would extend to even the youngest drivers. This is in contrast to rival schemes, such as Peugeot’s popular Just Add Fuel, which starts at £169 a month for a 107 but is limited to drivers aged 25 and over.

“This is the most important new car for the VW brand and we need new customers, especially young people,” de Meo said.

Equivalent prices cannot be confirmed until UK insurance costs and residual values have been worked out.

But the inclusion of young drivers will be critical, as cover costs can rule out a new car for most recently qualified drivers. Our research (below) reveals what an average 17-year-old would pay, for example, if leasing an £8,295 Peugeot 107 Urban Lite outside of the Just Add Fuel scheme – and it hikes the cost up to almost £350 a month, plus a £1,600 deposit.

A breakdown of the costs:

LEASE: Estimated cost for a 17-year-old to lease the 107 alone, using Peugeot Passport PCP - £123.03

SERVICING: Monthly cost if our customer signed up to ‘Optiway’ service plan - £16.57

INSURANCE: Estimated monthly premium for 17-year-old, sourced from insurer Aviva - £208.00

TOTAL: Monthly cost, not counting fuel bills, to insure and run 107 in the normal way - £347.60

(Source: Peugeot and Aviva. Insurance is estimated average cover for 17-year-old leasing new Peugeot 107 Urban Lite)

The up! goes on sale in UK dealers in the spring. Customers can place orders, but a VW spokesman said: “We want this offer as soon as we can.”

The UK deal will probably be a hire-purchase scheme rather than a lease, but with no deposit. After three years, you’ll be able to purchase your up! outright.

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I think these kinds of schemes are a very good idea as it allows young and old people a chance to drive a new car with all of the costs taken care of in one payment but, as with all of these schemes that include insurance they will be nationaly advertised to attract the maximum amount of people but with the tag line I see all to often in the smallest print possible, NOT AVAILABLE IN NORTHERN IRELAND.

i'd be sceptical personally.

All that for around £85 p/month, there must be a massive buy back option at the end of year 3!!

If memory serves, car insurance in Germany is taken care of by the government, at least I think that's what a friend who now lives in Cologne told me.
The other advantage would be a lot of LHD UP's to sell in other European countries after the lease term has finished.
It does seem a sensible idea, but in the UK the cars would probably be subjected to more wear and tear than VW would like, unless they charge the drivers an appropriate excess to put right any damage.
Peugeot's " Just Add Fuel" seems to be quite a good idea, so they must have costed it out. Of course, where I stay there's an even better system for providing young drivers with brand new cars at minimal cost and that's called Motability. In many cases they have a grandparent who qualifies but doesn't drive, which may explain the popular choice of an MX5.

VW in Germany seem to have got this absolutely spot on! I'm sure they'll find the take up rate of their scheme will be overwhelming. VW UK on the other hand have completely missed the point & will probably not see the same enthusiasm over here. VW in Germany are offering something VERY different and VERY attractive and not just to young drivers. My fiance currently leases a Fiat 500 which we're

VW in Germany seem to have got this absolutely spot on! I'm sure they'll find the take up rate of their scheme will be overwhelming. VW UK on the other hand have completely missed the point & will probably not see the same enthusiasm over here. VW in Germany are offering something VERY different and VERY attractive and not just to young drivers. My fiance currently leases a Fiat 500 which we're due to replace around the time the Up! arrives. IF VW UK replicated the German deal here i.e. lease NOT PCH including tax, insurance & servicing, they could charge almost DOUBLE what the Germans do & it would STILL be a good deal! If they did we might be tempted, if they don't we won't be (at least not through them).

My 17 year-old nephew is currently learning to drive and has bought a VW Fox for the purpose. At the moment he pays the equivalent of £1,600 a year in insurance because, as a learner, he is always supervised when driving. His premium once he passes his test will almost treble in size. As he is on an apprenticeship, his earnings are too low to make paying this viable without help from the bank of mum & dad, so the replication of the German up! scheme in the UK would be a Godsend to him.
Of course, while massively increasing the demand for up!s, the rollout of such an initiative would virtually kill off the secondhand market for low-insurance group cars.

Why?

Because the UK consumer is repeatedly taken advantage of. Affordable cars in Europe for some reason hit our shores as premium priced models. The Up! will undoubtedly be sold here as a premium city car rather than the 3 door tin box that it really is. I bet it will cost the same as an entry Polo!

I've passed my test today and something like this would be great as I could get a car straight away whilst working. Otherwise I'd have to wait a year or two before I can pay for the insurance let alone a car. It's all way too expensive! I looked up the peugeot deal and I was so disappointed that it's 21+ year olds only.

Has this deal ever been launched in the UK?

AEX 1334
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