Skoda India has just come up with a buy back scheme for the Superb luxury saloon. Called EasyBuy, this buy back scheme is exclusively meant for existing Skoda customers. The scheme is offered by Skoda’s financial services arm, which is a part of the greater Volkswagen Finance India group.
What is the Skoda Superb EasyBuy scheme all about?
The EasyBuy scheme offered by Skoda is on the ex-showroom price of the car. What this also means is the fact that the customer opting for the scheme will have to bear registration charges, insurance costs and the road tax. Assuming the Superb costs Rs. 24 lakhs, the buyer will have to initially pay Rs. 4 lakhs for road tax, insurance and registration charges.
Skoda will charge the customer a monthly EMI of Rs. 48,663, and after 36 months/3 years, will buy back the car from the customer for Rs. 13.67 lakhs. This ‘assured buy back’ value represents a resale value of about 57 % for the Superb after 3 years. Taking the initial investment of Rs. 4 lakh by the customer towards insurance and registration costs, the effective buy back cost comes up to about 50 % of the original, on-road cost of the car.
How does it benefit the customer?
The EasyBuy scheme is meant to make monthly EMI outgo for the customer much lower, therefore acting like a leasing scheme of sorts. If the customer were to take the same amount (Rs. 24 lakhs) as a conventional car loan with a tenure of 36 months/3 years, the monthly EMI outgo would be about Rs. 77,353, which is nearly Rs. 30,000 or about 60 % greater than the EMI of Rs. 48,663.
The EasyBuy scheme is also meant to assure the customer that there is a definite buyer for her/his car, in this case Skoda, after 3 years. All in all, it is like leasing a Skoda Superb for Rs. 48,000/month after paying an initial cost of Rs. 4 lakhs, and then getting Rs. 13.67 lakhs back after 3 years. The effective cost per month (excluding fuel and maintenance costs) of owning the car comes up to Rs. 39,805 under the EasyBuy scheme. Add Rs. 2,000 as monthly maintenance costs, and this cost will be common even for the buyer who opts for a regular car loan.
Is this scheme attractive for the buyer?
Considering that service costs are likely to be quite low given the standard warranty on offer, the EasyBuy scheme from Skoda looks quite attractive. This is considering the fact that a Skoda Superb bought at an on-road price of about Rs. 28 lakhs will go for about 60 % of its price after say three years of ownership. Also, luxury cars suffer from heavy depreciation, especially in the first three-four years. So, even if the customer sells the car in the open market after three years, she/he will get about 16-17 lakhs.
Mr. Zac Hollis, Director – Sales, Service, and Marketing, ŠKODA AUTO IndiaPvt Ltd. said,
ŠKODA has built its brand on clever offerings and a strong value proposition. In addition to offering a premium product, the ‘EasyBuy’ program is a unique initiative that further emphasizes the brands effort to understand customer needs while providing them with a hassle free ownership experience.’
Mr. Aashish Deshpande – MD & CEO, Volkswagen Finance Pvt Ltd. said
With our unique financing solutions coupled with the finesse of ŠKODA Cars, the launch of ‘EasyBuy’ is another step towards offering a one stop solution. One which is tailored to the financial and aspirational requirements of the customers. We are confident that this product will act as a true enabler for customer convenience.