Skoda UK have just updated the finance offers and 0% is back for part of July

Deposit contribution has gone down, but there is £750 free fuel

http://www.skoda.co.uk/finance/finance-offers

That forces my hand somewhat. Need to do the maths but I think I'll struggle to get a better deal than that!

I'd need to do the (complicated) sums to be sure, but I think the bigger deposit contribution offers they were doing with the 2.9% APR deals these past months pretty much covered the interest payments on the cheaper cars, and the 0% finance works out to be about the same cost (on paper. specific deals you manage to negociate may differ)

When I bought mine I got 0%/£1000 contribution and I was unsure if the 2.9%/£2000 contribution would have worked out better so I made a note of the prices for the various VRS models hoping to check if the offer came back on.

 

Based on the the same 42 months / 500 cash deposit / 5000 miles the current offer is between £12 and £20 per month less than the 2.9%/£2000 offer.

 

 

This is just done using the Skoda finance calculator rather than any specific offers worked out with the with your dealer

Pretty sure with the 'free fuel' offer as well, it's a pre-paid credit card. So you could actually spend that on anything you liked

Awesome maths Simon, thanks! As Wardy says the £750 fuel card is massive bonus too, about 6 months worth for me. It's an actual fuel card though so no cheating.

So does this mean the PCP is back on par with PCH or not ?

So does this mean the PCP is back on par with PCH or not ?

I doubt it, lets assume you put in same initial deposit of say £1000, then monthly of £x

at end in many months time, which will you have spent more on.

I would work on basis that it goes back, no excess to pay, and no surplus to come back, otherwise you cant compare

There are so many PCH deals, its likely you can find one thats good value for the timescale and mileage

If you intend to keep car regardless then shouldn't be looking at hiring it.

I think it'll be PCP for me, buying a car that I know the history off is appealing. I know it will need to be financed so I'll be paying for it for 5 or 6 years but I can live with that I think.

Having done the sums, the deal is fairly neutral vs the last quarters deal for the Octavia

It is worse for Superb, and not good for the lower value cars like lower spec Fabia, where the bigger flat rate deposit contribution was more than interest reduction.

The only people that this works well for is the negligible deposit group who know they will have a pot of cash in 3 years. If you don't have that bond maturing or other finance in 3 years then it looks like it is storing up trouble for when it ends.

It's all very headline grabbing, not sure what happens 19th July after deal ends.

Since nobody in their right mind buys a car at it's list price, how much do these different 0%/Deposit contributions/Free fuels come from the dealer margin that you could negotiate anyway.

 

I.e whats paid for by Skoda UK, and what costs the dealer?

When I purchased my VRS in 2014 with 0% finance and 3-years free servicing, I also negotiated a 6% discount. The Finance does eat in to Dealer margins, but interest rates are so low at the moment that they still have some room for haggling.