Skoda Octavia Estate punches its weight in PCPs

It’s been fascinating observing the new car retail offers available in the first month of the 65-plate.

To close the third quarter of 2015, Škoda UK has been offering retail buyers an Octavia on a 0% APR personal contract plan with monthly payments as low as £149 and a £500 deposit contribution. Reading past the headline offer, prospective buyers learn that to sign up for the 42-month deal, for a £16,820 1.2 TSI 110PS hatchback in S trim and with metallic paint, they’d also need a deposit or trade-in worth £4,911.

It made us wonder how competitive Škoda was having to be to put its cars into buyers’ minds.

At its more premium sister brand Volkswagen, the same deposit for a same-length PCP on a Golf SV that shares the Octavia’s engine and has just as much space in its substantial boot would leave buyers still finding £244 a month. Volkswagen is not publicising any deposit contribution, and its offer is at a 5.5% APR.

Hyundai is fighting for the buyer with a £500 deposit contribution on its i30 Tourer S powered by a 120PS 1.6-litre petrol engine. After the same £4,911 deposit from the buyer, its 5.9% APR PCP over the same period works out as a £174 monthly payment. The buyer choosing the Hyundai would get 10% less boot space than the Octavia and no alloy wheels despite paying more. Of course, the i30’s five-year warranty trumps the Octavia’s standard three, but an Octavia buyer can extend theirs to five years for an extra £515.

Finally, a prospective buyer searching Honda’s website could find a Civic 1.4 VTEC in S trim and metallic paint with a £2,000 deposit contribution from the carmaker on a 0% APR PCP. However,  with 37 months its longest term and a £3,445 maximum customer deposit, even after Honda’s discount, the monthly payment is £334. Like the Octavia, the Civic does come with alloy wheels and a three year warranty.

So, on its eye-catching price-fighter deal, it seems Škoda is punching its weight. The Octavia is demonstrating its value, and its consumer awards – it has held the What Car? Best Family Car award since 2014 – will further convince buyers they’re making a good decision.