Skoda Finance Deals: Driving Your Dream Skoda Home

Owning a new Skoda is often within reach thanks to a variety of finance deals offered by Skoda Financial Services and its partners. Understanding these options is key to finding a plan that suits your budget and lifestyle. Here’s a look at the common types of Skoda finance deals:

Personal Contract Purchase (PCP)

PCP is a popular choice, offering lower monthly payments compared to traditional loans. You pay a deposit, followed by monthly installments that cover the depreciation of the car over the agreement’s term. At the end of the term, you have three choices:

• Option 1: Return the car (subject to mileage and condition).
• Option 2: Pay the optional final payment (also known as a “balloon payment”) to own the car outright.
• Option 3: Trade the car in and use any equity towards a new Skoda.

PCP agreements often include a mileage allowance. Exceeding this will result in excess mileage charges. PCP offers flexibility, but remember the large final payment if you wish to own the car.

Hire Purchase (HP)

Hire Purchase is a straightforward way to own your Skoda. You pay a deposit, followed by fixed monthly installments over an agreed period. Once all payments are made, including any interest, you own the car outright. HP typically involves higher monthly payments compared to PCP but offers the security of knowing you will own the vehicle at the end of the agreement.

Personal Contract Hire (PCH) or Leasing

Leasing allows you to drive a new Skoda for a fixed monthly fee, without ever owning it. You pay an initial rental followed by monthly rentals for the duration of the lease agreement. At the end, you simply return the car. PCH is suitable if you want to drive a new car regularly without the responsibility of ownership or depreciation concerns. Mileage limits and condition requirements apply.

Skoda Finance Offers & Considerations

Skoda often runs special finance offers, such as low APR deals or deposit contributions. These can significantly reduce the overall cost of financing. Keep an eye out for these promotions on the Skoda UK website or at your local dealer.

When comparing Skoda finance deals, consider these factors:

• APR (Annual Percentage Rate): The APR represents the true cost of borrowing, including interest and fees. A lower APR means lower overall costs.
• Deposit: The initial deposit amount can affect your monthly payments.
• Monthly Payments: Ensure the monthly payments fit comfortably within your budget.
• Term Length: Longer terms typically result in lower monthly payments, but you’ll pay more interest overall.
• Optional Final Payment (PCP): If considering PCP, be prepared to pay the potentially large final payment if you wish to own the car.
• Mileage Allowance: Carefully estimate your annual mileage to avoid excess mileage charges, especially with PCP and PCH agreements.

Always read the fine print and fully understand the terms and conditions before committing to a Skoda finance deal. Talking to a Skoda finance specialist can help you find the best option for your individual needs.