Skoda - how risky?

[canyonman]

Hi all,

I am looking at leasing a new vehicle and have had a Golf V and really like it very much however I need a wagon and was keen on a Skoda Octavia RS wagon however when I discussed this with a car consultant he was very negative about it. Not the car as such but he believes that Skoda will not last in Australia due to the money being lost by the dealers. He says that there will be no Skoda dealers in Queensland before long etc etc.
What are people's opinions? Is this just a conservative scare mongering thing or is this a very real risk. He says if (when) Skoda pulls out the car would become virtually worthless overnight?
Has anyone any perspective on this??

[gregozedobe]

IMO it is certainly a possibility, but not that likely. VWA have done it before with the SEAT brand. I think a few dealers took on a Skoda franchise thinking it would quickly ramp up in volume, when it didn't they relinquished their franchise/s.

I think that Skodas weren't properly priced to be the "budget Oz VAG" brand initially, but given the recent price reductions for some models that should help a lot. In Europe Skodas are a lot cheaper than similar VW models, here in Oz Skoda doesn't have such a significant price advantage.

More people are becoming aware of the brand, but positive word of mouth is slow to spread (especially compared with bad word of mouth).

I believe that Skodas are great cars ( I love mine), but it is going to be a long haul to get the sales volumes they deserve here in Oz. The vast majority of Oz new car buyers are pretty conservative about purchasing a "new" brand that they don't know much about (unless it is cheap like Kia, Hyandai etc were when they first came to Oz).

I bought my Octy RS wagon intending to keep it for at least 6 years (probably longer), so resale values aren't important to me.

[Jake02]

This 'car consultant' sounds like an idiot, and not much of an expert IMO. It annoys me that someone could be just so negative about a brand that offers so much, and yes they've been here only 2 years, but sales are on the up, every month. And VW Aus is supporting them financially (and they're making money) so I don't think they're gonna exit just yet.

As it was said by someone else on this forum, VW Aus didn't bring out Skoda for s**ts and giggles did they? They know that new brands take a long time to properly set up and are ready for the long-run. And I think it's funny that when SEAT came out, they weren't actually owned by VW. Well not until the very end, but by then the damage was done, so how could brand failures be made on a pathetic, untrue argument? I'll just add that Red Book Aus (the people who set resale values) have just put up Skoda resale to VW levels, so that worry has been lessened.

But canyonman, if you're enquiring about the Skoda range, it's obvious you know that they are a great range of car so I don't need to tell you about mine (apart from I've had no problems AT ALL in two years of ownership). If you buy one, the sales go up (because no doubt you'll recommend one to someone if you buy it) and the brand awareness goes out (because you spread it). So yes, I'd STRONGLY recommend one! (Y)

[K1W1]

When VW was reintroduced into Australia in the early 1990's all the same things were said.

When Nissan ceased manufacturing in Australia in the early 1990's all the same things were said.

When Mitsubishi ceased manufacturing in Australia 3 years or so ago all the same things were said.

I would not be looking at a Skoda if I were concerned about resale over a short (2-3 year) period. In fact I would not be looking at any new under $50k car if that was my main buying criteria. If I were looking at bang for buck, driving enjoyment, proven reliability and quality of finish and ongoing support (regardless of whether the vehicles continue to be sold here) from what will shortly be the worlds biggest car manufacturer then I would find it very hard to go past a Skoda in fact I didn't and mine has been sitting on Webb dock in Melbourne for the last two days.

[TuNeS]

Hi all,

I am looking at leasing a new vehicle and have had a Golf V and really like it very much however I need a wagon and was keen on a Skoda Octavia RS wagon however when I discussed this with a car consultant he was very negative about it. Not the car as such but he believes that Skoda will not last in Australia due to the money being lost by the dealers. He says that there will be no Skoda dealers in Queensland before long etc etc.
What are people's opinions? Is this just a conservative scare mongering thing or is this a very real risk. He says if (when) Skoda pulls out the car would become virtually worthless overnight?
Has anyone any perspective on this??

its a brilliant car and i love it more every day. bought myn from brisbane prestige and they were pretty good.

[spellbound]

Agree with all of the above comments , i made my descission based on the great results skoda was pulling on the j d power uk customer satisfaction survey 2008.

I have had my rs wagon for 16 months , and its totally reliable not one fault , better finish than my liberty wagon .

I need a wagon , so i had to pass on a gti , but without doubt the rs drives to 95% of a gti .

After 12 k its loosened up with more go than ever , plus a bonus 8.2l per 100 around town , make sure you get a good test drive down some rural B roads , thats where it excels.

Also drive a hard bargin because they have more padding in the price than with a golf

Regarding the lease i see no problem achieving the payout figure in 3 years , their reliability will drive resale up further .

[Sales @ Mentone Skoda]

They know that new brands take a long time to properly set up and are ready for the long-run. And I think it's funny that when SEAT came out, they weren't actually owned by VW.(Y)

Jake02 is spot on here, VW were imported by inchcape when SEAT was introduced to the OZ market. VW pushed for the brand to be here but without the guideance and the backing of the factory (only a ditrisbutor) the brand never found its feet and like all things in business today it got to hard and they gave up (case in point, anyone who has given up a Skoda franchise to date)

As we are all aware VGA exists now and is based in Sydney and the rhetoric we hear is that the brand will not resemble SEATs journey in anyway shape or form, it is here to stay with a long term objective. Sales people who rubbish other brands do so out of insecurity in majority of the cases. I have had many educated people looking at VW, Audi and Mercedes who have made the decision to purchase the Skoda over a return visit to one of those brands. And when we talk about word of mouth i have just sold a vehicle to a lady yesterday who's neighbour referred them after buying a car 2 Saturdays ago. Both famuilies were considering Mazda 6, VW Jetta and subaru and after reviewing ALL they both settled on the Skoda.

I myself walked away from 7 years with VW to be a part of the Skoda brand as to me it seems to make more sense to the OZ makret as far as versatility is concerned and also drivability, skoda seems to handke OZ road conditions a little bit more convincingly than even the VW product let alone what the Japanese are serving up.

All i can say is make your decision based on logic and emotion, letting someone scare you away from a brand because of their own personal invested interests is not the right thing for anyone to do with such a large investment. Read the write-ups and reviews (locally and globally) and then make your choice once you have driven everything that appeals to you. Whether you end up in Skoda or not you owe to yourself to look at everything objectively.

And finally on resale don't listen to the rubbish people are sprouting and look at it in context. Lets take Mazda 6 wagon auto Vs Octavia 1.8TSi wagon DSG, the Skoda is better buklt (laser wielded), better finished interior, quicker 0-100km and yet uses around 20% less fuel, more standard features, bigger boot in litres, has a 7 speed dual clutch transmission and is a nicer driving car (customer feedback and personal opinion). These attributes do not change in 3-4 years time and the Skoda will stil outshine the competition in these area's therefore making the resale issue a mute arguement.

Good luck with the new car purchase

[Antiplastix]

Just go drive a Octavia RS Wagon then make up your mind. I did and bought 1 a week later. Why worry about resale if your going to lease the vehicle anyway, surely it cant do worse than a Falcodore fleet wagon who s value plumet faster than a stone. To buy the equivilent specd. Passat wagon is going to cost you $7k more ($10-11 if your good at negotiating on the Octavia) and even more on a Audi A4 wagon, so you are in front all ready.
:confused:

[dazag]

The only risky thing about a Skoda, and i quote my wife here " I'm going to loose my licence in this thing if I dont ease off the throttle"
She's mainly been a passenger, and i told her to take it for a "spirited drive" and to play with S mode and the paddles as well ( she's always been a die hard manual car person ). She came back with a huge smile and stated the above quote.
she's happy, I'm happy, every person who has come for a drive in our RS wagon has been amazed. The courier/delivery guys that drop gear off have been asking about it, the Window tint guy was very impressed with it's build quality, the list goes on.

I really need to get out and finish my video clip of our RS, just to show it off some more.

[canyonman]

Thanks to those who have responsed. I have test driven an RS wagon with Tsi and DSG and thought it was great hence my enthusiasm to get one. The car consultant was recommended to me by a friend as "independant" as he is a car broker and not with one particular brand (though he did seem very keen on Mazdas?).
As I said in my post he did not run down the RS as a vehicle. He said that the dealers were losing money big time and would dump the brand (as it appears Zupps at Mt Gravatt did). I did go into Zupps to look once last year and I am not surprised they could not sell any Skodas. They could not have been less interested it seemed.
So my dilemma is as I said, I like the car, I like the brand but it will be a pain if there were no dealers in Brisbane.
Brisbane Prestige seem to have a few orphan brands ... Saab (in the doldrums and struggling) ... Citroen (interesting cars but the definitive heart over head decision) .... Hummer (yuk, yuk, yuk) ..... Skoda (great cars but not in great company at this dealersip?)
I know Tunes purchased his white RS wagon in Brisbane (awesome it is too!). Has anyone a perspective on whether Brisbane Prestige will be in for the long haul with Skoda?
I am not adverse to purchasing the car through an interstate dealership however obviously if I do buy a Skoda and do buy it in Brisbane I help the dealer survive .... thoughts anyone? What about GC dealer or Sunshine Coast ... any experiences there? Thanks again ...

[Jayse]

Hi all,

I am looking at leasing a new vehicle and have had a Golf V and really like it very much however I need a wagon and was keen on a Skoda Octavia RS wagon however when I discussed this with a car consultant he was very negative about it.

Canyonman brings up a good point though.
When my brother was looking at cars 2 months ago, he asked his association what Corp discount they can do on the vRS and the guy he spoke to automatically talked down the Skoda and everything Skoda. He came back to me totally off the idea, which i put him on (he was also looking at new Liberty 2.5i sports & Honda Accord Euro Luxury) but i showed him some reviews of the car and the bang for your buck specs of the car and he was back on. Unfortunately the dealer we went to lived up to some of the criticisms of the car broker he spoke to and it totally turned him off on it. Well actually i think the 4 month wait was the real killer, but the service he got didn't help. I should've sent him to you Chris.

My long winded point is that i think quite a few uninformed buyers will be turned off the Skoda brand by the ill informed "opinions" and, thats all they are, opinions, of the car brokers out there. Maybe Skoda needs to address that, plus getting the positive vibe of Skoda out there!

Cheers,

Jayse.

p.s. Canyonman, go the vRS..as a wagon you can't do much better for the $$$!!!

[onyertod]

I can understand people who don’t care about cars giving Skoda a miss.
The “Whitegoods on Wheels crowd” will stick with Toyota Corollas, Camry's etc.
Given the ease of access to information which the internet provides, its sad that more people don’t do a wee bit of research on the Skoda brand.
Some of the facts are astounding., e.g. Skoda have sold 2 million Octavias.
The Superb and Yeti are winning awards all over the place.
If you go to Europe and get run over by a Taxi, chances are it will be a diesel Octavia.
In the Times newspaper Jeremy Clarkson recently reviewed the Audi Allroad 3.0 TDI Quattro and concluded “Not as good as a Skoda (Octavia Scout)”.
I have every confidence in the future of Skoda in Australia because the product really is good. If the likes of Renault, Citroen, Peugeot, Ssangyong, and even Great Wall FFS, can sell cars here then Skoda has a bright future.

[Antiplastix]

Isn t it woeful that the members on here can do a better job of dragging up facts and figures and selling a good product than VW Aust. can! The only thing I can think of is that they are meeting their expected "sales targets" so couldn t be bother advertising and getting the brand out there and accepted. Most people dont even know what a Skoda is when I tell them I bought one.

[Manaz]

To buy the equivilent specd. Passat wagon is going to cost you $7k more ($10-11 if your good at negotiating on the Octavia) and even more on a Audi A4 wagon, so you are in front all ready.
:confused:

Octavia to Passat isn't a fair comparison.

[woofy]

I sometimes park near the GC Skoda when I go there for work. It seems fairly well setup. The only dealership here that gave up on it was the FT Gully guys, and well, the average person off the street could have sold one better. If they were going to not even try and sell them, then they met their own expectations.

I have had a few people buy them based off my experience, and that happened when I bought my Mazda 6 as well. I really think it is crucial to keep the existing owners very happy at this stage, as they are the best advertisements.

[Golf Loon]

Octavia to Passat isn't a fair comparison.

It pretty much is. Lots of the same parts.

[gregozedobe]

Octavia to Passat isn't a fair comparison.

I wouldn't say that, it depends on what criteria you want to compare - try comparing luggage space volume and usability for example ;)

I certainly looked at a Passat wagon before I purchased my Octy RS wagon :)

[spellbound]

Interseting the comments about dealers in the eastern states , there is only one dealer in adelaide , large organisation , running vw , audi , skoda, jaguar , land rover ,volvo, aston martin all exclusive except vw .

Their mass gave them a very professional look which was very important when purchasing my skoda .

They were right on the ball , top showroom , one central service centre for all brands , knowledge in their product .

The weakness for skoda could be the dealer network which may need to be rehashed in the east .

I feel quite confident in the brand continuing into the future , iam most satisfied with the product , well built, performs well , reliable , which is what we all want , they just need to build on these points , it is a long term exercise , just as it was with audi in the early 90's .

[Plicata]

I think the broker referred to by the OP was just being sensibly cautious. He’s not interested in driving qualities or whether you love the car, he is just looking at the numbers. Recommending a Mazda or Honda is a safe bet in this market (if he was in the UK, he would be recommending Skoda and being cautious about Mazda or Subaru). We all hope that Skoda stays in Aus but there are no guarantees. My uncle and aunt just bought a 2 year old Octavia for $21,000 which cost $42,000 on the road when new. The broker is right to be cautious about resale values when advising a client. There are no issues with the quality or reliability of the car so it’s just a question of whether you can afford the potential depreciation.

[canyonman]

Thanks Plicata for your response and yes the consultant was concerned about depreciation however that did not really concern me too much as I had planned to buy the RS out at the end of the lease and turn it into the family run around.

What did concern me was his assertion that "Skoda won't be around in Australia too much longer" - his seemingly confident claim was that dealers were taking a bath and would cut and run very soon.

Hence my concerns - I like the car but don't like the idea of being "dealer-less"??

[Cupra]

canyonman don't worry about the dealerless situation to much, I am the proud owner of a Seat Cupra sport which I picked up new at the end of 99 (I just realised, 10 happy years of fun this month!!). Shortly after the purchase Seat as it was left Oz. I had no problems with service or warranty work through VW dealers to the point that when I was looking to replace my 626 I picked up a MkV golf.

If the car ticks all your boxes & you say you want to keep it at the end of your lease buy it & enjoy :)