Skoda/Audi's Buy Now, Pay in 2021 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 now (2019/2020) and pay in 2021. I couldn't check out the details last year (Skoda have only 1 showroom for whole of Chennai- even Mercedes has more showrooms).
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 2020 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.
My counter offer:
I want to give a counter offer to Skoda/Audi: I will pay in 2019, you give me the car in 2021.
Fine print: I will pay only Rs 1 now and balance from 2025 onwards!
Update: Audi has launched a similar scheme
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 *
Watch the ad below before proceeding further
This year the offer is back, on all Skoda cars, including Rapid, Octavia and Superb.
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 2020 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.
My counter offer:
I want to give a counter offer to Skoda/Audi: I will pay in 2019, you give me the car in 2021.
Fine print: I will pay only Rs 1 now and balance from 2025 onwards!
Update: Audi has launched a similar scheme
Good Entertaining Post ! I totally enjoyed reading the Confused inputs by the Salesperson. The catch here is that How Advertising can mislead the audience.
ReplyDeleteYes very true
DeleteAs usual, beautifully articulated. I haven't expected such big hidden cost of 35% down payment in this AD. Cheap marketing strategy from Skoda.
ReplyDeleteThat's what we call as a misleading advertisement. Which you Beautifully explained sir..
ReplyDeleteThanks Pooja, Chandra Shekhar, Unknown...
ReplyDeleteAd's are always misleading. Skoda will loose it's name if they continue these cheap tricks. 3.5 lk dp is huge for a rapid. To be frank we can file a case for misguiding the customers.
DeleteEvery such offer will have fine prints which only can be understood with a microscopic eye like you.Well written
ReplyDeleteEvery such offer will have fine prints which only can be understood with a microscopic eye like you.Well written
ReplyDeleteThanks Satish!
ReplyDeleteGood write up Anna
ReplyDeleteThanks
ReplyDeleteHa ha.. Most of the ads are misleading now a days. There must some control to the ads to tell the truth to customers.
ReplyDeleteSuper, really I imagined the scene and couldn't stop laughing,these people hiding behind ads should be brought out like this ..
ReplyDeleteThanks Rajesh and Aaslin
ReplyDeleteHa ha..Nice one
ReplyDeletehey shrinidhi
ReplyDeletegreat 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
thankyou
Thanks Ankur
ReplyDeleteNice one
ReplyDelete, u r a time saver n a good writer. Thanks for sharing.
Keep it up.
Papa sales person ;)
ReplyDeletein todays time you buy anything on emi or on loan its common understanding that you have to first pay a minimum amount as down payment. yes the ad that showed more than what was needed but taking any product without paying anything is irrelevant. Down payment is mandatory.
ReplyDeleteI could have paid Rs 50 or max 100 as downpayment (as I went out to buy fruits, not car) . but they wanted 3.5 lakhs!
DeleteChutiya Scheme !!!
ReplyDelete😂
Delete@Anon- sure.. :)
ReplyDeleteThanks for the funny tale of , ad companys ,now a days, whatever we buy ,we can get maximum 99% discount, finally they say ,terms and conditions apply,...
ReplyDelete:)
ReplyDeleteYes..
ReplyDeleteIt' really very disgusting , ridiculous and cunning activities of the car makers..who tell u different version of the TV ad.regarding cars...they considered the people fool...all of the car companies got indulge in these cheap and cunning activities..and still there is no regulatory board or something who will take some serious action against these companies...they are just duping the people..no law is there either..that how these companies show us something ,tell us something and in practical that is totally opposite...such a cheap joke by companies..no government is interested in these type of cases because govt have got lot of financial support from these corporates....these companies are just like those fairness cream Advt.that provide fantasy world to people who got very dark complexions...totally cheap way to get money...a beggar is much reliable person than these because he openly admitted that he is getting money by begging rather than duping people
ReplyDeletehmmm. very harsh words.. I think if all ads are brutally honest, no one will buy anything!
DeleteYes sir we agree but it shouldn't be in such a way where people will loose the trust sir.
DeleteVery interesting and entertaining post. I really liked. Yes, reality is always lil different than the advertisement. But I'm sure skoda cars are really good. I am using Skoda Octavia for more than 2 years and I'm quite happy with the service of skoda dealer.
ReplyDeleteThanks for sharing your experience Vivek...
DeleteNone of the car makers making you full. While showing the advertisement the provide notifications that. " Terms and Conditions applied " this guy missed that.
ReplyDeleteWell, terms and condition should supplement what's shown in ad, not contradict. In this case ad creates an impression- no need to pay anything for an year, while reality is you've to pay 35%... If such a practice is acceptable they can simply say "car is totally free" in the ad and include terms and condition that "free only for viewing, to drive one should pay 15 lakhs"
DeleteWhy not just sue these guys for cheating on the ad and they will bring the fruit basket as well as Skoda without any documents
ReplyDeletein US that would have won you millions... In India all are hand in glove. Read my experience complaining about Honda MObilio ad
Deletehttp://www.enidhi.net/2015/04/mobilio-complaint-advertising-standards.html
http://www.enidhi.net/2015/02/honda-mobilio-misleading-print-ad.html
This has happened for me too like you really well articulated it's really a very very cheap publicity from one of the giant Co. like Skoda. Like this type of cheap add will cost the customer realiability and will loose the market.
ReplyDeleteI am sure people who devised this scheme are aware of its negative aspect, still doing this year after year which means they are probably having some sales because of this scheme and prefer to continue with it
DeleteGovt should clamp down on companies that create misleading advertisement.
ReplyDeleteI had complained about a misleading ad by Honda -
Deletenothing happened... http://www.enidhi.net/2015/04/mobilio-complaint-advertising-standards.html
A huge six ....sirr .. Great job
ReplyDeleteI had call several times to Skoda showroom @ kolhapur abt loan scheme for Octavia but they dint answer me properly.for exam they said we will call u back but still I had not a single call from Skoda
ReplyDeleteThat why they say...Simply Clever
ReplyDeleteGood you are not following Wild Stone ad
ReplyDeleteVery well defined
ReplyDeleteBe remember always ... In our India, any kind of advertised is always beneficial to advertisers not to consumer .
ReplyDeleteTrue
DeleteThank you very much I was planned to reach showroom for this scheme and I was so excited about it thank you very much for saving my precious time because my location is 200 kms from skoda showroom...
ReplyDeleteHappy to help
Deletethank you for sharing the information.
ReplyDelete