Skoda guarantees retained value

Skoda has introduced a new programme to meet the needs of customers who might be concerned about the resale value of the new car they're buying.

Named 'Skoda Choice', the programme provides new Skoda buyers "peace of mind", to use the words of Frank Czarnetzki, of Skoda Financial Services.

"We believe in this car, we believe in the brand, we believe in the value of this car, but... we [also] believe in the future value of this car," Czarnetzki told local motoring media gathered for the launch of the new Octavia Scout earlier this week.

"We designed a program called 'Skoda Choice', which guarantees the future value for the customer, without any compromise. It's all about peace of mind, to give the mobility to the customer to enjoy the car without any risk... two years, three years' time down the road, once [the lease] contract has expired."

Options include financing the car fully (with initial on-road costs covered as well) or buying equity in the car with a deposit or a trade-in – or a combination of the latter two. The lease payment is based on the term of the lease, which the buyer decides, and the estimated distance likely travelled per annum – up to a maximum of 25,000km.

From this the Skoda F&I person at the dealership can calculate a guaranteed future buy-back price for the car.

Once the lease is concluded, the owner can choose to hand the car back, or buy out the balance owing. The vehicle can also be traded in on a new Skoda, with the lease contract renegotiated.

"The customer can choose between one and four years' duration time [for the lease], mileage between 5000 and 25,000km per year, depending on personal needs," Czarnetzki said.

"What's the benefit for the customer? Simple and easy, absolutely risk-free driving. There's no worry about... a huge balloon payment at the end of the contract..."