Skoda Australia will guarantee the future value of its new cars through its new Skoda Choice finance scheme, which Skoda says will give customers added peace of mind when the time comes to sell their car.
Loan terms can range from 12, 24, 36 or 48 months, with annual distances travelled between 10,000km and 25,000km. The scheme is only available to private buyers.
Once the buyer selects their preferred terms, Skoda will calculate the monthly repayment as well as the car's expected residual value at the end of the lease.
When the lease is up, the owner can then elect to pay out that residual and keep the car, trade it in against another new Skoda (and make up the difference with a new lease) or return the car with no more to pay.
Structured similarly to Skoda's existing Personal Contract Plan in the UK, Skoda Choice differs from most car finance products by having a guaranteed buy-back option.
While similar vehicle leasing schemes are commonplace in North America and growing in popularity in the UK, only Holden, Toyota and a handful of luxury brands offer such schemes in Australia.
Speaking to the media at this week's launch of the Octavia Scout, Skoda Australia Director Michael Irmer said the Skoda Choice leasing scheme could tap into growing demand for such financial products
"We’re bringing it to Australia because we believe there’s a big market and a necessity for owners to have peace of mind," he said.
"It means there's no risk."
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