Sunday, January 22, 2017

Skoda's Buy Now, Pay in 2018 EMI Holiday scheme explained!

Remember the Skoda ad in which the guy who goes out to buy some fruits returns home with a Skoda rapid (and still manages to buy fruits as well)? This was thanks to Skoda's scheme of Buy in 2016 and pay in 2017. I couldn't check out the details last year (Skoda have only 1 showroom for whole of Chennai- even Mercedes has more showrooms).

Watch the ad below before proceeding further

This year the offer is back, on all Skoda cars, including Rapid, Octavia and Superb.
So I decided to check out. I was super excited at the prospect of stepping out of my home with just about Rs 150 (to buy some fruits) and drive home in a new Skoda car, without having to worry about the money for an year!

Below is my experience at the Skoda showroom. The conversation has been edited for dramatization purposes.
Location: Gurudev Motors, Skoda Showroom, Anna Salai, Chennai.

The Salesman: Welcome sir.

Me: Thanks. I am looking to drive home in a Skoda car now and pay next year!

The Salesman: Have you decided on the Model and variant sir? (That sounded very optimistic!)

Me: No- I will take whichever one readily available to be driven home.

The Salesman: There're some formalities sir.

Me: Fine, as long as it can be completed before showroom closes. I have Rs 150 in my pocket- I can afford to spend Rs 50 as I still need to buy some fruits- which are very expensive these days.

The salesman: Excuse me sir? (Puzzled look)

Me; You've not seen the Rapid Ad in which guy goes out to buy fruits but returns with a Rapid? I can show it on youtube right now, if you can ensure that I get to drive home in a Skoda today

The salesman: It doesn't work that way sir!

Me: (Genuinely surprised): Then how does it work?

The salesman: You need to apply for loan, once approved you need to pay 35% down payment and rest you can pay from 2018 onwards!

Me: I have enough money to buy some fruits- can I get the loan sanctioned right now?

The salesman: No sir- you have to give your ID and address proof, income proof etc and then the bank will decide if you're eligible for a loan. Once approved you also need to pay 35% as down payment.

Me: Hmm, the cheapest variant of Rapid costs 10 lakhs on road. You think the guy in the ad was carrying 3.5 lakhs when he stepped out to buy fruits (Fruits are expensive, but not really that expensive!)? Do people carry salary slip and IT returns while going to buy fruits?

The salesman: I don't know sir. If you can come tomorrow bank representative will be here- you can liaison with him.

Me: But how will I take the fruits home tonight- you're suggesting me to take an auto or cab now? How did the guy in ad got his loan approved so fast?

The salesman: Sorry Sir. Adhu Avankita dhan saar kekunu (Need to ask them only!)

So that is the end of the story for me. Where did they mention about 35% down payment in the ad?

Anyway, the catch here is this-On a 10 lakh rupee car, if you're paying 3.5 lakh upfront, the loan you're asking is technically for 6.5 lakhs. The EMI you might have paid over 5 years is apportioned to last 4 years. Instead of paying Rs 16000 for 5 years (60 months), you will pay Rs 20000 for 48 months (year 2-5), first year declared as EMI holiday.  There will be a processing fee of Rs 5-6k. All these cleverly packaged to suggest that no need to pay anything in first year!

Skoda Rapid on road price in Chennai varies from 9.9 lakhs to 14.2 lakhs for petrol and from 11.3 to 15.7 lakhs for diesel. Maintenance packages, Drive assure elite and accessories extra. Meanwhile, Tata Hexa is 15 to 21 lakhs on road approx.

Similar: My experience complaining to regulatory on Honda Mobilio Ad * Audi Bullet scheme explained * How to beat January Car price hike ghost * Buying vs Renting a car


Pooja Bhatt said...

Good Entertaining Post ! I totally enjoyed reading the Confused inputs by the Salesperson. The catch here is that How Advertising can mislead the audience.

Chandra Shekhar said...

As usual, beautifully articulated. I haven't expected such big hidden cost of 35% down payment in this AD. Cheap marketing strategy from Skoda.

Unknown said...

That's what we call as a misleading advertisement. Which you Beautifully explained sir..

Shrinidhi Hande said...

Thanks Pooja, Chandra Shekhar, Unknown...

satish said...

Every such offer will have fine prints which only can be understood with a microscopic eye like you.Well written

satish said...

Every such offer will have fine prints which only can be understood with a microscopic eye like you.Well written

Shrinidhi Hande said...

Thanks Satish!

Unknown said...

Good write up Anna

Shrinidhi Hande said...


Aaslin said...

Ha ha.. Most of the ads are misleading now a days. There must some control to the ads to tell the truth to customers.

Rajesh Thyagarajan said...

Super, really I imagined the scene and couldn't stop laughing,these people hiding behind ads should be brought out like this ..

Shrinidhi Hande said...

Thanks Rajesh and Aaslin

Ramesh said...

Ha ha..Nice one

Shrinidhi Hande said...


ANKUR,Incomeboy said...

hey shrinidhi

great article sir you exactly showed what the salesman offfers and what we percieve it to be.
very well written and beautifully articulated.i myself imagined the whole scenario and it was dammn funny..!!
kudos to you sir


Shrinidhi Hande said...

Thanks Ankur

px admins said...

Nice one
, u r a time saver n a good writer. Thanks for sharing.
Keep it up.

Shreesha Vailaya K said...

Papa sales person ;)