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Old 27th February 2013, 13:52   #1
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Default Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

Following is the print ad that came in Divya Bhaskar (Gujarat) on 26th February. It looks like it is not a dealer ad, but a corporate release and specifically says - "Buy one Rapid and get one Fabia free".

My initial reaction on seeing this ad was that it is a gimmick to clear vintage stock and would be some kind of lucky draw/special discount or something like that. The lady answering the call at the showroom mentioned in the ad was also not divulging any details. She was simply saying that the offer is true with no hidden conditions and I should come to the showroom with my cheque ready to give booking if I was interested in the offer. Today an acquantaince of mine visited a Skoda showroom and what he was communicated was that if today he buys a Rapid (petrol or diesel), he will be given a Fabia (base model) FREE after a period of 5 years (petrol or diesel based on the Rapid variant purchased). This is also not any kind of buyback or exchange scheme on the Rapid purchased. The Fabia would be absolutely free.

I understand that Skoda wants to celebrate its 11th anniversary in a BIG way, but this is surely going overboard. Makes me wonder what they will say on their 16th anniversary when they are busy giving out Fabia's to all these Rapid customers, provided brand Fabia or even brand Skoda survives that long in the Indian car market. Going by the various experiences on the Skoda threads in this forum, it definately seems a remote possibility.

I was just trying to calculate the economics involved here. If Skoda gets, lets say 10 lacs approx for the Rapid now, and buys a Fixed Deposit of the same amount for 5 years, will they earn enough to give a brand new Fabia (ok-base model also) at the end of this period and still earn profit in this process.

Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!-skoda-ad.jpg

Last edited by GTO : 27th February 2013 at 14:39. Reason: Adding Screengrab of the Ad
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Old 27th February 2013, 14:48   #2
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

Thanks for sharing, Gitartha. I must say, this is one of the most unique sales promotions I've seen in a long time.

From what I hear, Torque Auto is actually a good dealer and has a monopoly over Gujarat.

Question:

1. The current Fabia won't be in production in year 2018. Will he offer the generation that is then on sale

OR

2. Will he give you a 2013 Fabia in 2018
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Old 27th February 2013, 15:00   #3
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

What a daft marketing idea. A freebie being promised 5 years down the line has no value today. Instead, Skoda should have offered a discount of say 1/5th or even 1/7th the value of the Fabia, on the Rapid today, and seen some volume.
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Old 27th February 2013, 15:01   #4
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

Quote:
Originally Posted by gitartha View Post
Following is the print ad that came in Divya Bhaskar (Gujarat) on 26th February. It looks like it is not a dealer ad, but a corporate release and specifically says - "Buy one Rapid and get one Fabia free".

Attachment 1056293
Top of the Ad says "Simply Clever". My senses are confused as to who is that
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Old 27th February 2013, 15:08   #5
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

There aren't any stars or hashes in the ad, perhaps they were replaced by the tagline 'simply clever' on top. As much as I do not doubt your (or your friend's) info, I still think we are missing the details here. 5 years doesn't make sense. A free Fabia for a Rapid doesn't make sense either! You've already clarified that it isn't a lucky draw or a discount gimmick. As I go through the ad again to try and figure it out, all I am left with is a feeling that that 'simply clever' just gave me a wink .
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Old 27th February 2013, 15:30   #6
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

Is this really true? I don't think so. There must be some trick in this. I am not sure what it could be. Are they giving this in writing? In 2018 will they give new manufactured car? Will Fabia survive in market for next 5 years? Most unlikely ... Instead they should offer some really cool discounts. That will be much better for customer.

Please let me know if this scheme is true. I might think over it
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Old 27th February 2013, 15:39   #7
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

Wierd.

Are they banking on cost saving and a huge price drop with the new Fabia? Even then even if they make 2L on a Rapid today it will not become 4L in 5 years and the Fabia may then too still not go below 5L Ex Showroom. Are they banking on a new small car being called Fabia - nope whichever way we see it there is no money to be made. Are they going to give an old / preowned Fabia in 2018? That is the only way this can work out financially. But why would a person with a 5 year old Rapid want another 5 year old Fabia in 5 years time.

What is the discount that they are prepared to give today if one passes up on the offer.

Something is really odd.
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Old 27th February 2013, 15:43   #8
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

This is certainly not a national offer, maybe limited to Gujrat only.
The Skoda India site does not show any offer on the Rapid except the Rs. 8999 EMI offer.

Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!-rapid.jpg
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Old 27th February 2013, 15:53   #9
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

Quote:
Originally Posted by GTO View Post
Question:

1. The current Fabia won't be in production in year 2018. Will he offer the generation that is then on sale

OR

2. Will he give you a 2013 Fabia in 2018
Or will this be Mr. Harish's Fabia ?


Well, as aniketi also said, there must be some 'clause' which is unknown. If there is really something real and true in this add then its just a steal deal IMO.
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Old 27th February 2013, 15:57   #10
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

This is indeed a brilliant way to increase sales of the rapid. If budget and car need permitted it, I would purchase a rapid today.

A couple of questions though:

1) Is this an all India offer or just in Gujarat.
2) What happens if the fabia is out of production by then.
3) I assume the vehicle will be given at ex showroom so tax will need to be paid. I further assume you would be able to upgrade to a higher trim level by paying the difference.
4) Is this deal applicable at Skoda, or a specific dealer only (what happens if you move or your skoda dealer where you purchase today goes out of business).
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Old 27th February 2013, 16:13   #11
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

im just curious, as its not mentioned.. will the Fabia be brand new or a used one? because assuming they even manage to sell about 100 cars in the offer period, they will need to store atleast 100 cars to return to customers after 5 years (assuming again that the fabias after 5 years are the .. needless to say the costs incurred through that itself would be quite substantial.. this i think is easily the most interesting offer we've all come across in a long time...

Last edited by bivin : 27th February 2013 at 16:19.
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Old 27th February 2013, 16:18   #12
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

Too good to be true. Is Skoda banking on some "End Of The World Theory"? This year 13 has been real unlucky for atleast the automobile companies who have to dole out such schemes to achieve sales.
As far as my understanding goes no real bussiness house banks on Fixed Deposit interest to run their bussiness. In fact they are always short of working capital through which they can extract maany times the returns as compared to the bank interest. A discount of 1.5 lakhs not given today can easily be worth aa Fabia in 5 yrs with a decent bussiness plan
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Old 27th February 2013, 16:32   #13
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

The good thing about this promotion is you'll end up with a free hatchback when your city traffic conditions demand you have one.

Skoda's promotion translates to : Drive (Buy) a sedan today (from us) when you can, you'll only want to drive a hatchback (smaller car) in the future, and we're safeguarding that very interest of yours for free!

Excellent.
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Old 27th February 2013, 16:35   #14
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

Called the dealer, got the following information.

Skoda dealers have been offering discounts of Rs. 100,000 on the Rapid. Of course, if you buy a Rapid under this scheme, no discounts are applicable. When I called the dealer, the sales personnel were initially hesitant to share any information on the phone, insisting that I visit the showroom for full details. On prodding, it was revealed that a brand new Fabia will be handed over in the year 2018. All taxes (including VAT, road tax etc.) and insurance will be borne by the owner. If you'd rather have cash, Torque Auto will pay you Rs. 350,000 in the year 2018.

Torque Auto must have excess inventory of the Rapid or the Fabia, or both. The Fabia is a market dud, selling barely over 200 units each month. This scheme could also be a way of raising finance. To the dealer, the Rs. 1.75 lakh margin on a Rapid (with zero discounts) could be worth Rs. 3.5 lakhs 5 years later.

Find it surprising that Skoda has allowed its dealer to run this ad; the campaign could be damaging to the "Fabia" as well as "Skoda" brand names.
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Old 27th February 2013, 16:48   #15
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Default Re: Buy a Skoda Rapid, Get a Fabia Free (after 5 years)!

Quote:
Originally Posted by GTO View Post
Called the dealer, got the following information.
Did you ask - Will he give you a 2013 Fabia in 2018?
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