National press take note of increase in Skoda price and use Octavia mk3 as the example  

 

"Skoda price rises double those of its rivals

 

Cars made by Skoda, a brand traditionally thought of as offering value for money, have some of the fastest-rising prices, according to new analysis. Since 2007 the price of its Octavia has risen almost 50%, more than double the rate of rival models.

 

Seven years ago the cheapest Skoda Octavia was the 1.4 Classic, costing £11,017 on the road. Today, a family would need to spend £16,255, or 47% more, to buy its equivalent, the Octavia S 1.2 TSI Elegance, according to CAP, the industry valuation experts.

 

CAP calculated the price rises for 10 popular models, including the Volkswagen Golf, Ford Fiesta and Mondeo, Mini, Renault Scénic, and BMW 3-series during the same seven-year period. It found they had risen 23% on average, compared with inflation over the same period of 20%.

 

Skoda said the price rise was a consequence of the brand becoming more mainstream and boasting better features. It added: “The standard specification has increased dramatically across all trim levels and the current Octavia has the highest level of technology available.”"

 

The Sunday Times

Edited 2 May, 201412 yr by Zillio

cant see how a classic is equivalent of an elegance?  

There's also no such thing as an "Octavia S 1.2 TSI Elegance".

 

It's either an S or an Elegance...

Typical press nonesense, I honestly have no idea why people read anything these people write.

Yeah they got the name wrong, think they are comparing the entry spec models over the years

The price is right for a 1.2TSI S model isn't it?

The price is right for a 1.2TSI S model isn't it?

Yes:

 

http://www.skoda.co.uk/models/new-octavia-hatch/prices

 

 

When you factor in just VAT and inflation against the 2007 price there is already a £2,257.07 difference. (although I know this will be the same for all manufacturers)

 

Inflation since 2007 - £1,929.08

VAT increase of 2.5% - £327.99

 

Plus, more importantly, what you get now is not comparable with 7 years ago.

Edited 2 May, 201412 yr by JamesVRSmk3

There is no equivalent of the old 1.4 classic in the current range ie, one with an underpowered out of date engine, steel wheels, key locking etc. Skoda only had those 1.4's to have a low price on the adverts "....from £11k...."

The Times would have been better to compare a 2007 Elegance to a 2014 Elegance.

The Octavia has changed so much since 2007 that Skoda could give it a completely different name. It's all arbitrary and not comparing like for like, If they were comparing something like the cost of fuel, a set of tyres, a new exhaust (even tyres and exhausts are improved incrementally) it would at least be a benchmark that has some continuity.

25 years ago aircon, ABS, 5-speed gearboxes and electric windows were considered luxury items. Now they are standard within all but the most basic cars. Average specification always goes up as car prices rise at around the rate of inflation. Saying that Skoda price increases are a direct result of specification increases is stretching the truth. As with iPads, base spec always increases as production costs and efficiencies of scale for new technologies go down. Other brands have increase standard kit by similar levels without upping the price by so much.

 

It is a simple case of as the Skoda brand improves so do VAG's prices and profit margins. In other words demand and supply.

Edited 2 May, 201412 yr by Orville

I don't think the octavia has changed that much since 2007 that skoda should have called it a different car.

Skoda prices have definately increased more than most but hey ho. Buy or don't buy

I don't think the octavia has changed that much since 2007 that skoda should have called it a different car.

Skoda prices have definately increased more than most but hey ho. Buy or don't buy

 

Don't agree. The MkIII is a step change. There's a reason why they're selling as well as they are. I've had every Octavia since the MK1 (5 of them) and they've all been better than the last, but the MK3 has been such a bigger improvement over the MK2 FL, that's why the price has gone up. Almost everyone on here was going crazy at the originally announced pricing, hasn't stopped orders, though. Now it's even more expensive.

Don't agree. The MkIII is a step change. There's a reason why they're selling as well as they are. I've had every Octavia since the MK1 (5 of them) and they've all been better than the last, but the MK3 has been such a bigger improvement over the MK2 FL, that's why the price has gone up. Almost everyone on here was going crazy at the originally announced pricing, hasn't stopped orders, though. Now it's even more expensive.

The reason in my opinion was the 0% and free servicing for many.

I agree it's the best but let's be honest it should be, cars are moving on so much year on year. I too have had the mk1,2 and 3. But you can tell they are all the same.

It's a very good car no doubt but also can say your paying for it. I'm not bringing into question if it's merited the increase just that it's had a massive increase over the years

I don't think the octavia has changed that much since 2007 that skoda should have called it a different car.

Skoda prices have definately increased more than most but hey ho. Buy or don't buy

 

The old MK2 was based on Golf 5 technology(PQ35 platform) its whole life up until it ceased to be sold late 2012/early 2013, that is a platform that was initially designed in the late 90s and early 00s. The new MK3 is based on the MQB design, which in fact will be used among others on the new Passat 2015 - and therefore is a technically much more advanced car than the MK2 ever was.

Edited 2 May, 201412 yr by Trekster

The old MK2 was based on Golf 5 technology(PQ35 platform) its whole life up until it ceased to be sold late 2012/early 2013, that is a platform that was initially designed in the late 90s and early 00s. The new MK3 is based on the MQB design, which in fact will be used among others on the new Passat 2015 - and therefore is a technically much more advanced car than the MK2 ever was.

I'm not disagreeing with that. As I say I've owned all 3 but you can still tell each one is a progression and still feel like an octavia

The old MK2 was based on Golf 5 technology(PQ35 platform) its whole life up until it ceased to be sold late 2012/early 2013, that is a platform that was initially designed in the late 90s and early 00s. The new MK3 is based on the MQB design, which in fact will be used among others on the new Passat 2015 - and therefore is a technically much more advanced car than the MK2 ever was.

It makes you wonder why Golf prices did not rise as much as Octy prices if the MQB platform change was a big reason for price change.

Hold on, MQB is supposed to be a more efficient and cheaper production process, allowing one light weight chassis to be adapted and reused for many different sized vehicles.

It makes you wonder why Golf prices did not rise as much as Octy prices if the MQB platform change was a big reason for price change.

Hold on, MQB is supposed to be a more efficient and cheaper production process, allowing one light weight chassis to be adapted and reused for many different sized vehicles.

 

I can't speak for the UK market, but here in Denmark, Skoda is not "Skoda" anymore. By this I mean the market position of the marque has changed considerably since the MK2 was released. This is also reflected in resale prices where Skoda is the 3rd best marque in Denmark to hold its prices over a 4 year period. This in turn drives prices up on new vehicles for the benefit of Skoda, here the consumers do lose. However, atleast in Denmark where cars are quite expensive, you still get quite a big bang for your buck buying a Skoda rather than VW or AUDI whose prices are ridiculously high, for the same components being used, the only reason they can do this is because VW and AUDI have used years to position those marques as being "premium". This is what's in part happening to Skoda right now and that's why the prices have risen this much. 

 

Now here, where Skoda was before we find Seat, so their prices match more with what Skoda was before(although their prices have gone up) this is the VAG groups positioning here. In regards to the scalability of the MQB platform, yes it was designed to be a maximum profit platform for VAG. Are the prices too high? I don't think they are, otherwise there wouldn't be a 5-7 month wait on a run of the mill Octavia MK3. In Denmark sales of the Octavia have gone up from 1457 vehicles in 2012, to 3537 in 2013 and to date they have sold 1227 vehicles in Q1 14, so they see no incitative to keep prices close to the inflation as they are selling like crazy.

Edited 3 May, 201412 yr by Trekster

You always get a dip in sales before new model comes out then a rush.

Skoda have been poorly prepared and doing a 0% and free servicing offer on a brand new model was only going to end this way