This Skoda PCP deal seems too good to be true, what's the catch?

I like the Skoda Yeti 150PS 4WD SEL 'Drive' with £1500 'free' extras. Skoda is offering a PCP plan of 0% finance plus £1000 contribution to the deposit and after three years the vehicle can be bought at an agreed price or exchanged for another plan. It sounds too good to be true, so what's the catch?

Asked on 10 February 2017 by EEBAHGUM

Answered by Honest John

As long as you will be happy to be driving around in an old model Skoda Yeti for about two and a half years and as long as you return the car at the end of the term with no damage, it's fine. You know exactly what you will have to pay for 36 months and exactly how much you will need to buy the car at the end of the term if you want to. What isn't guaranteed is any equity left in the car to fund the deposit for another PCP, though dealers are usually financially 'supported' by manufacturers to make sure they don't lose you at this point.

Tags: buying and selling pcp finance consumer advice

Dear Honest John,

Please help me choose my next car. I would like it to have:

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Skoda Yeti (2009 - 2017)

Unique styling. Solid build. Excellent petrol engines including frugal yet peppy 1.2 TSI. Good space in the back. Frugal 1.6 TDI Greenline can return 60mpg+.