Crazy Skoda sale offer

[SurreyJohn]

Skoda are running what they call a sale. On PCP

 

Just did an Example on calculate button (top of screen)

Can change spec, but I used default which is Karoq SE Drive 1.0tsi

defaults to 48 months

 

Cash price is £28,365

Total payable under offer £32,034.14

offer is actuary adding 12.93% extra to price.

 

So offer is you pay them £3669.14  extra !!

or they give you £3250 and you give them £6919.14 

 

https://www.skoda.co.uk/finance/deals/karoq-pcp
 

Does anyone else think that is stretching definition of a sale when price ends up higher.

 

Only really a sale if take the £3250 (11.4%) then settle balance within 14 days.

 

To put offer into perspective if go to Poland the Karoq starts at Zlotty 121,050 (£23,890) so wonder why UK price is nearly £4500 higher for same car

.

Edited 10 February by SurreyJohn
Typo

[Rory]

Well, I suppose the average Skoda owner may be a little different, but apparently pretty well everyone "buys" new cars on PCP now.   So with the deposit contribuion does make the starting price £3250 lower.   And the interest rate is pretty good these days (although they are starting to drift down with othe rmakes too).

 

Of course you might be able to get the car even cheaper - when we got our Tiguan new, as well as £2750 deposit contribution, the dealer knocked more than £30000 off, so that £30K list car cost us £24K.  I did withdraw from the finance,  but if we'd have let it run we would have been financing £24K rather than £30K.

 

On your other point, does the Polish price inc VAT?  

Edited 10 February by Rory

[Paws4Thot]

1 hour ago, Rory said:

the dealer knocked more than £30000 off, so that £30K list car cost us £24K

On which basis the dealer should have paid you six grand with the car!  

[xman]

5 hours ago, SurreyJohn said:

Does anyone else think that is stretching definition of a sale when price ends up higher.

Twas ever thus.

 

People leasing or buying on PCP in general always get ripped off. Most never think beyond the monthly payment. Most never consider the annual mileage trap.

 

We bought our factory order Superb mk3 SEL executive with £2000 of options in March 2018 for £22,000 that was £8000 off list.

 

Local dealer now has a rather arrogant sales guy, not willing to talk any discounts, just rattles on about finance on PCP. Well, I'll wait until the recession gets really bad later this year and no one is buying ..

 

2 "special events" in 2 months show things aren't going too well in Skoda sales. Our dealer has a dozen or more unsold new Kodiaqs, not surprised.

Edited 10 February by xman

[kodiaqsportline]

2 hours ago, Rory said:

...but apparently pretty well everyone "buys" new cars on PCP now.

 

👍  Spot on.  For the majority of PCP, buying has nothing to do with it, it's more akin to a lease.  I'm sure some will, but I don't know anyone who's bought their car after the PCP has run it's full term. PCP is all about how much are the monthly payments.

 

I usually consult DriveTheDeal website as they're typically up to speed on what the latest offer is. They're saying that their discount prices included a £3250 PCP contribution from the finance company plus an additional £1000 contribution if an order is placed by the end of the month.  It'll be that additional £1000 discount from the finance company that'll be refered to as the 'sale' or 'special offer'

 

SurreyJohn - Apologies if I'm stating the obvious, but it doesn't matter what the actual sale figure is, if that figure is lower than what the figure would have been had there not been a sale on, then I can't see why anyone wouldn't think it a sale?

EDIT:  Just looked at the Skoda website. The figures used in their calculations are based on the standard £3250 contribution, but they haven't taken in to account the extra £1000 which is being applied as part of the sale.

 

One thing I do note about what DriveTheDeal says, is that for non-PCP buyers, ( i.e. cash buyers ) Skoda are saying they're entitled to £2750 off + an extra £500 off due to this sale offer.

 

That never used to be the case with cash buyers after the dealer discount has been applied. It tells me Skoda are desperate to shift cars at the moment. I wonder if this has anything to do with the upcoming penalties that are about to be applied to car dealers for not selling enough EV's ?  I can certainly see why they'd want to get rid of cars to avoid those penatlies.

 

DTD are offering that Karoq SE Drive ( list £28365 )  at £23085 which is a discount of £5280 which is a % discount in the high teens. So all you do is buy it on PCP and settle in the following days to get the car at that price. All new car prices are crazy at the moment, but comparing it to the alternatives, it's  seems a decent enough offer. In my humble opinion of course.

Edited 10 February by kodiaqsportline

[xman]

14 minutes ago, kodiaqsportline said:

I wonder if this has anything to do with the upcoming penalties that are about to be applied to car dealers for not selling enough EV's ? 

You are probably right. That would explain the extremely long list of brand new cars that our stealer claims they have, on offer in "Special Event no.2" this year. They normally have very few.

I guess lots of dealers may have pre-reg'd a ton of ICE cars in anticipation of poor EV sales this amd future years

 

https://www.whatcar.com/advice/buying/what-is-the-zev-mandate/n26196

[Schtum]

3 hours ago, kodiaqsportline said:

 

👍  Spot on.  For the majority of PCP, buying has nothing to do with it, it's more akin to a lease.  I'm sure some will, but I don't know anyone who's bought their car after the PCP has run it's full term.

 

That'll be us.  We got a new Karoq in October 2019.  My wife was doing 15k miles a year then so the payments were c. £400 a month. The car itself was £36k list but the dealer immediately offered us it for £32k.  I think it was a cancelled order and he was concerned that not many people would want a 190 TDI SE L.  During Covid, my wife decided she'd had enough of her senior management job and packed it in.  In consequence, we currently have a 33k mile Karoq sitting on the drive rather than one with 60k on it.  The balloon at the end was just under £12k. With an initial deposit of £1500, I think we just under £33k all in.   I'm still not quite sure how we managed that but those are the figures. 

 

I did the same thing with the new Mk5 Golf GT TDI I got on a PCP in 2008.  It was a £20k car then.  I think by the time the PCP was up at 3 years and I'd paid the balloon, the total was £22k and then I kept it for another 8 years. 

Edited 10 February by Schtum

[Rory]

2 hours ago, xman said:

You are probably right. That would explain the extremely long list of brand new cars that our stealer claims they have, on offer in "Special Event no.2" this year. They normally have very few.

I guess lots of dealers may have pre-reg'd a ton of ICE cars in anticipation of poor EV sales this amd future years

 

 

Are they brand-new or pre-reg - does the dealer have a web link to them?

 

I got very annoyed last year as wanted a new Karoq but needed it quickly.  There just seemed to be nothing around.  Dealers were advertising cars, but when you'd rang there'd be all sorts fo bull about why they didn't actually have them.  However there were loads on nearly-new cars around.  VW was same with Tiguan.

 

It just seemed to me like they'd pre-reg'd the cars to avoid having to give the PCP deposit contribution and new-car discount.    We took a nearly new one and the dealer put an order in place for a new one.  It came last month (3 months early) but the dealer offered an absurdly low price for ours so told him to stuff it.  He said it's become very difficult to do deals at the moment as "book" price on used cars had dropped dramatically. Yet forecourt resales seem as high as ever.   They were talking £18K for ours yet have the same car on the forecourt at £25,500.

Edited 10 February by Rory

[Redboy]

Unless you can pay outright then there will be a premium for driving a new car. PCH was fairly cheap but those cheap deals are  now scarce. As for trade-in values, the dealers have to provide facilities, pay staff, taxes etc.  The 2nd hand market is apparently weakening. We all expect cheap deals and max trade-in value. The best deals are in my experience pre-registered or almost new with low mileage. I.e. you aren't paying the initial lump of depreciation.