Future Price Promise is GFV with a difference

JAECOO recently announced its Future Price Promise program as an agnostic Guaranteed Future Value offering available to all private buyers irrespective of the means with which they finance their vehicle.

In establishing a point of difference that is extended to customers who pay cash, or to those who finance via a third party, the Chinese importer says it hopes to prove to Australian buyers that it is here to stay – locking in a vehicle’s minimum value at the end of a four-year/60,000km term.

Speaking with GoAuto this week, Jaecoo Australia chief commercial officer Ray Munoz said the brand’s Future Price Promise will differentiate itself from rival Guaranteed Future Value (GFV) programs by allowing customers the freedom to finance their vehicle outside of the Jaecoo network.

“It’s not too dissimilar to a guaranteed future value product,” he explained.

“The main difference is that it’s payment or finance agnostic, so it applies to every new retail of a Jaecoo J7 or J8, at no additional cost to the customer.

“They get a guaranteed minimum future price, or guaranteed future value, at the end of four years.”

Like other guaranteed future value programs – including those from Audi, Hyundai, Kia, Land Rover, Mazda, Nissan, Porsche, Skoda, Subaru, Toyota, Volkswagen, and Volvo – the Jaecoo Future Price Promise comes with terms and conditions aimed at ensuring the vehicle is saleable at the end of the imposed ownership duration.

“Kilometre limits apply, however. If you do go over that 15,000km per year (limit), there’s just an excess kilometre charge,” he added.

“So, I guess the key difference (between our program and other GFV programs) is that regardless of how you pay for the car, you’ve got a guaranteed buyer at the end of four years, at a minimum price.”

Mr Munoz said the decision to offer a Future Price Promise on Jaecoo products speaks of the brand’s commitment to the Australian market.

“It is intended to provide certainty on a new brand, and on a volatile market,” he stated.

“Basically, at the end of four years, no matter which way the market goes, you will know what the minimum price floor is for your car.

“If the market goes well, you still reap the benefits of a strong market or a strong residual, and if there’s a downturn in the market at the end of four years, you’re protected at that floor”

Additionally, he said the program offers flexibility at the end of its term, offering buyers choice when it comes time to sell or trade-up.

“It also opens up your options – at the end of four years, you can keep the car, trade it, sell it privately, or exercise your rights at the buyback,” he added.

Mr Munoz said that in offering greater flexibility than comparable programs, the Future Price Promise will achieve greater penetration among purchasers, further driving sales of the Jaecoo brand Down Under.

“Generally, for finance penetration, GFV is actually quite low,” he continued.

“Our thoughts, in addressing customer concerns around future residual values and what might be perceived of the longevity or sustainability of the Jaecoo brand, was to create greater peace of mind up front.

“We aim to build more value into the brand and the vehicle, and to offer customers even greater confidence on top of our eight-year warranty, capped-price servicing plan, and roadside assistance offer.

“The idea is to offer a GFV product, but to go one step better – to give the benefits of a GFV program to everyone.”

As is the case with the majority of GFV programs on offer, Jaecoo’s Future Price Promise is offered to private customers only, is non-transferable, and requires servicing to remain within the Jaecoo network.

Mr Munoz said that as well as ensuring vehicles are serviced through the Jaecoo network, the ability to yield a quality trade-in vehicle at a future date is one the brand’s dealers have welcomed with open arms.

“Typical GFV products mean dealers have visibility on the maturity of the product only for those customers on a GFV program,” he remarked.

“Our product gives them visibility on any customer within that four-year period, and helps to pinpoint the ideal time to offer, potentially, a trade-in or an upgrade.

“In that way, it helps our dealers around the country to stay in touch with Jaecoo customers over that lifetime. The whole idea is to keep our customers within the brand, to keep them within the network, within the whole Jaecoo ecosystem.

“We want to keep in touch with our customers throughout the whole of their ownership experience, and one of the key features we offer as part of that experience is the ability for our customers to check the value of their vehicle live at any time via the customer portal.

“If the customer feels they’re ready for the next Jaecoo product, or an upgrade, then at least they’ll know they have options – and that they don’t have to wait for their four-year window to mature.

“Essentially, they have options throughout the whole ownership experience.”

*Based on ATO depreciation schedule

Guaranteed future value products available in 2025: