[mempheS.D]

Did I miss a newsprint that the world's ending this year ? What's this company announcement all about? It looks too good to be true. True it is.. I can't say whether it's TOO GOOD for all.

I am sure there are some additional conditions like NO DISCOUNTS ON THE RAPID. NO EXTENDED WARRANTY ON THE RAPID. All this would translate into the the cost of a Fabia base trim in 5 years time if they have a solid business plan!

OT: reminds me about the conversation at the tata/fiat dealership in 2011. I walked into one showing interest in the TJET/P90 (with my then girlfriend, and now wife). A salesman approached with not much explanation or test drive offers. After I was done inspecting the cars, I asked for a TD. Then, he lets the cat out of the bag with the most insane sales pitch ever, as he was the guy marketing TATA and the FIAT fellow was in some meeting.

"Saar, with the same money for a TJET/P90, you can rather buy a Manza and get a Nano for madam also.".

I firmly said NO.

"But Saar, look inside Manza. More spacious than TJET. Same diesel engine as P90. Plus you get nano free!!!!"

He had a point there, but what was he trying to sell me there? eek! I just walked out with a grin on my face only to turn right and find that my lady was already drawing pictures in her mind of a white nano with pink flowers... Damn the sales guy!

[Warwithwheels]

Originally Posted by GTO

Will he give you a 2013 Fabia in 2018

That's quite unlikely! Holding back the inventory for 5 years will most likely make the dealership go bankrupt.

What if we sell the car before the 5 year term?

There should be a catch somewhere!

Originally Posted by 2cents

There aren't any stars or hashes in the ad.

I do see an asterisk symbol in the ad (Next to the E in Free in the Red box). Here's a screenshot from Torque Skoda Website:



May be they would fund this promotion from their Ad spend!

[advaitlele]

This still sounds fishy to me - even after the info that GTO got from the dealer.
I had already made up my mind - stay away from the brand - after Harish's and other episodes. And this just reaffirmed it. Call it mental block or whatever - I ain't getting home any of these; even for 50% discount.

[tbppjpr]

Originally Posted by GTO

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.
...

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.

Its still a great deal IMO Even if the final benefit translates only into 3.50 lakh. If one is looking to buy a Rapid in Gujarat then this is the right to buy that because whatever huge margin dealers have by selling the cars, they don't give their customers any significant discount or rebate or anything unless there is some scheme is going on.

Originally Posted by mempheS.D

"Saar, with the same money for a TJET/P90, you can rather buy a Manza and get a Nano for madam also.".

I firmly said NO.

"But Saar, look inside Manza. More spacious than TJET. Same diesel engine as P90. Plus you get nano free!!!!"

He had a point there, but what was he trying to sell me there? eek! I just walked out with a grin on my face only to turn right and find that my lady was already drawing pictures in her mind of a white nano with pink flowers... Damn the sales guy!

I didn't laugh so hard in any of recent discussions on TBhp in the the recent past. Literally banged my head on my desk with a big laugh after reading your post.

You are absolutely right, sometimes these salesman/marketing-people just come out with out of the world ideas.

[mobike008]

Truly a unique and "daring" promotional way to sell the Rapid.

Iam not sure how the dealer will maintain a brand new fabia of 2013 and give it FREE in 2018 ( assuming its production will eventually shut-down considering its pathetic sales). Imagine a Fabia under lock and key for 5 years waiting to be gifted to some guy who fell for this gimmick

I dont even think a Fabia will be available that is manafactured in 2018

Originally Posted by gitartha

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.

If they deposit the Rs. 10 Lakhs that dealer receives as payment for Skoda Rapid, what about the cost of Rapid? Do you think Skoda is manafacturing that free of cost?

Iam sure this must have been cooked up by someone with zero knowledge of economics of scale and in most probability will be withdrawn shortly

[bivin]

@GTO: "brand new Fabia" will be a 2013 version or a 2018 version? and the 3.5 lakhs is present value or future value?

[Santoshbhat]

What happens if the dealer shuts shop? What happens if the owner of the dealership passes away? What happens if the dealership goes bankrupt? What happens if the person buying the car passes away? What happens if the model is discontinued? It'll be really interesting to read the fine print of the offer. Very very fishy, I must say. I hope Skoda steps in right now. Things could get nasty for their brand image if things go wrong at a later date.

I don't see many people going for this kind of offer. For the car buyer its like investing 1 ~ 1.5 lakhs with the dealer to get something like 3.50 Lacs after five years. People make investments by depositing their hard earned money in Banks, Insurance cos etc... basically institutions they trust and institutions which have regulatory bodies monitoring them. Here you are at the mercy of a 'Car dealer', a business entity that we need to be so careful while dealing with, that T BHP has a long checklist for us to tick off! Who in their right senses would want to keep a receivable with them?

[arjab]

Originally Posted by GTO

To the dealer, the Rs. 1.75 lakh margin on a Rapid (with zero discounts)

Are you sure ?

1.75 lakh margin on a RAPID? Even Merc, Audi, Bee-em, JLR does not give this much.

There's something missing here. Industry wide, the dealer margin is around 3% of Invoice Price for any model sold. Assuming the dealer retains the entire margin,for a Rs 10,00,000 lakh Rapid,the dealer margin will not be more than Rs 30,000 per RAPID.
Okay, let's assume this fella' is really wily and even manages to retain all the commission earned from Insurance, Accessories, Registration etc, still the cash in dealer's hand will not be more than Rs 40-42,000

[GTO]

Originally Posted by Thilak29

Did you ask - Will he give you a 2013 Fabia in 2018?

Did too. He said "Sir, 2018 model". I asked him what if the Fabia doesn't exist then. Response "We'll pay you 3.5 lakhs".

Originally Posted by tbppjpr

Even if the final benefit translates only into 3.50 lakh.

On second thought, I have to agree with you. Say, I buy a Rapid diesel for 10 lakhs, sell it after 5 years for 5 lakh (diesel car easily retains 50% value). If the dealer keeps his promise and pays me 3.5 lakh, the Rapid Diesel has cost me a mere 30,000 p.a. in depreciation. If I'm an entrepreneur and claim tax benefits (on depreciation), the car doesn't cost me a dime.

Originally Posted by bivin

the 3.5 lakhs is present value or future value?

3.5 lakhs in 2018.

[revintup]

From the dealer's perspective, lets see what is in for him.

1. He gets to sell a Rapid right now without any discount. So he saves on the 1 lakh discount(currently on offer).

2.The dealer will be giving orders for X no.of Fabias 5 years in advance which means Skoda gives him a deal on the Fabias.

3. He might be banking on the fact that many might opt for the 3.5lakh cash payout instead of a new Fabia. Come to think of it, you always want to upgrade, and a Fabia is not an upgrade from a Rapid. It will be wanted only as a second car in the family and not as a primary while selling the Rapid.

4. He gets a lot of bookings, increases his monopoly and bankrupts the nearby skoda dealerships Well not so much of that.

All said and done, I just cant make any sense of this offer. Looks like a good time to bring the Rapid home, but only if you were already eyeing it !

[manson]

Originally Posted by arjab

Are you sure ?

1.75 lakh margin on a RAPID? Even Merc, Audi, Bee-em, JLR does not give this much.

As indicated by you, 3% of the car cost is the dealer's margin. The differential 1 - 1.2L amount could be or rather is the excess discount being passed on to the dealer for picking up stock which may or may not be passed on to the end customer.

[pganapathy]

I have to wonder if this deal is being offered because the dealer and/or Skoda expect fabia production to be shut down before 2018. If not, I would take the fabia rather than cash, as I could sell it for more than 350,000.

If it is based on the cash payments, then possibly this deal works out. Enough to move existing stock that is a drain on everybody. Given this deal, I only have to wonder why they don't offer this deal pan India. It will boost skoda sales and interest in their brand.

If this is a dealer offer in Gujarat only, what happens if the dealer goes bankrupt or shuts shop

[handsofsteel]

How I wish Honda came up with an offer for buy a City now and get a Jazz in 2018 free sure many of us would have gone in for it. on a serious note, this sounds too good to be true, so it probably is. waiting to see if anyone picks up a rapid under this offer, probably more details would emerge.

[Warwithwheels]

Looks like this in not very uncommon in the west, on googling just stumbled on this news snippet:



Some quick work on the numbers gives me this result. But just wondering if the rebate would be so high!

[NMS]

Ok !! This thread has made me a Butt of All Jokes in Office !!

On a serious note, this offer looks very good !! Now if only in celebration of the 11th Year Skoda could start improving A.S.S.

This is the first thread I saw in the morning, and I already felt like upgrading my Fabia.