Guaranteed buy-back for Skoda’s Australian range

FINANCE for Skoda vehicles in Australia now includes a guaranteed buy-back price as the Czech car-maker chases a new breed of buyers.

Skoda Choice, based on a similar finance tool used by Skoda in the United Kingdom called PCP, is now available on all the company’s models, but only applies to private owners.

Skoda Australia director Michael Irmer said the product secures the residual value for the future and added that there was a arket for such a product here.

“It means there’s no risk,” he said at the Skoda Octavia Scout launch in Hobart this week.

“The product is usually associated with prestige cars. We’re bringing it to Australia because we believe there’s a big market and a necessity for owners to have peace of mind.”

Skoda Financial Services director Frank Czarnetzki said Skoda Choice was designed to be as flexible as possible.

“The finance can be for the whole car including on-road costs and can take into account a trade in,” he said.

“It can be for 12, 24, 36 or 48 months and for annual distances between 10,000 kilometres to 25,000km, in 5000km increments.

“We then calculate what the monthly repayments will be and what the residual value will be at the end of the agreed period.

“You pick what period and distance you expect to drive and we do the rest.”

At the end of the lease period, the Skoda owner can choose to return the car to Skoda, retain the car and pay the outstanding balance, or refinance and move into a new Skoda.

Lease deals with guaranteed buy-backs are generally only available on more expensive vehicles.

In Australia these include Audi and BMW, however Holden’s Smart Buy and the Toyota Access scheme also offers similar services.

The Toyota service, introduced in 2013, attracted 10,000 new customers within 10 months of its launch.

Electric car-maker Tesla also committed itself to a guaranteed buy-back program for its Model S.

Skoda's current Australian range includes the Fabia light hatch, Corolla-sized Rapid, mid-size Octavia, Superb large car and the Yeti SUV.