What's the difference?
What sets the most iconic Jaguars apart?
Here’s a theory. Consider history’s greatest: the 1948 XK, its 1961 E-Type replacement and the first XJ of 1968. We’re talking about a grand tourer, sports car and luxury sedan respectively that broke ground in each of their segments.
Despite being a sales disappointment, let’s add the 2018 I-Pace to this elite group.
Like the others, it was a pioneer, this time in the luxury electric vehicle (EV) SUV field, beating most competitors and seemingly influencing newer ones ever since, from the excellent Kia EV6 to the coming Mercedes-Benz EQE SUV.
Now, five years and a comprehensive update later, we revisit the 2023 I-Pace to see if it’s still a standout.
Typically appealing to those seeking quality engineering and tech without feeling the need to make a boastful badge statement, Skoda is a low-key, ultra-confident brand.
On sale here since 2018, the Skoda Karoq is a comparatively small fish in one of the most hotly contested segments in the Australian new-car market, namely medium SUVs, the leading trio consisting of the Toyota RAV4, Nissan X-Trail and Mitsubishi Outlander.
To increase its appeal against these and other high-profile contenders Skoda Australia has introduced a new entry-level Karoq designed to hit the Goldilocks zone between attractive standard specification and sharp pricing. CarsGuide was invited to its local launch.
In the 1960s Jaguar used to promote its range as providing “grace, space and pace”. Nowadays, the I-Pace may as well also be known as the I-Grace and I-Space, because all three terms still ring true.
Jaguars were never cheap but the greatest hits felt like exceptional value because they were special. The same applies here. Five years might seem like an eternity, but age has not yet wearied the British luxury EV SUV nearly as much as you might imagine. Especially when optioned up as per our test vehicle.
Bereft of any post-modern brand baggage, the I-Pace remains a modern great. If only more buyers would catch on to that.
This new entry-level Karoq gives the already accomplished mid-size SUV an even sharper value-for-money edge. On top of that it's space efficient, hugely practical and economical. Safety's up to speed, the ownership package is solid and it's a quiet, refined drive. Before joining the RAV4 queue, we'd suggest giving this Skoda some serious thought.
Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.
Five years on, from the bold cab-forward silhouette to the high-riding crossover proportions, the I-Pace is a distinctive and handsome machine, offering progressive, flowing aerodynamics that have as much to do with function as they do with form. This is an out and proud EV.
But there’s the rub. Perhaps the disappointing sales reception is down to it being too removed from what many consumers might expect a Jaguar to look like.
Grille-aside, there isn’t enough connection with stablemates like the woefully-underrated XE or F-Pace, while traditionalists – many of them Americans – wanting classic XJ or XK retro schtick are also plum out of luck. Cover the badge and the styling could be from any (forward-thinking) carmaker.
Or maybe it’s because the I-Pace, whose body is 94 per cent aluminium to help offset the weight of the batteries, looks compact in photos, like a crossover hatchback, when in reality it is surprisingly large, belying its sleek styling by packing in plenty of space inside.
Speaking of which, let’s take a closer look.
Skoda's distinctively broad, vertically slatted grille stands the brand apart, and even after six years in market the Karoq looks crisp and contemporary with chiselled character lines and jagged head and tail-lights blending successfully with more gently curved surfaces along the car's flanks and turret.
It might be a subconscious side-effect of knowing Skoda is part of the VW Group, but I can't help seeing hints of Tiguan here and there, particularly around the side windows and rear end.
But cool touches like aero-influenced inserts in the 18-inch alloy rims reinforce the Karoq's individual look.
Move to the inside and while the 8.0-inch central media touchscreen and 8.0-inch digital instrument display are on the pace the overall design shows the car's age.
Quality trim materials lift the tone, the cloth seats with contrast stitching look (and feel) great, but the understated dash design in particular is 'traditional', the vibe accentuated by liberal use of piano black highlight elements.
That said, the mix of on-screen functions and physical controls works well ergonomically and the leather-trimmed, partially-perforated, flat-bottom steering wheel is hard to fault.
Yes, compared to the vast mega screens invading most new models of today, the I-Pace’s dashboard layout is looking, well, off the pace. On first glance at least, this is definitely a product of the previous decade.
But as far as design elegance and functionality are concerned, Jaguar seems to have created a timeless piece of crafted automotive interior architecture that – consequently – holds up very well.
Or, in other words, the I-Pace provides a welcome sanctuary away from the infuriating folly of today’s faddish, fiddly and infuriatingly distracting touchscreen interiors. Maybe some old-school XJ smarts live on in this EV after all.
Look past the dated dashboard design, and the cabin’s overriding impression is of solidity and quality. No cheap plastics or rough surfaces here, just restrained luxury.
While electronic displays with very-analogue-style dial options amid digital driving data take care of the instrumentation ahead of the driver, a modestly-sized touchscreen is set at a lower plain so as to not dazzle and distract the job of vehicle controlling with data-overload, while under that is smaller display for climate control. More on that later.
Part of the Pivo Pro multimedia system, that central touchscreen is switched on and ready for use before the ignition button is even pressed, for immediate action.
No delaying-tactic welcome fanfare as the system boots up as per almost every other carmaker’s set-up, either. Just instant gratification, ironically. This dash is starting to feel like a resto-mod, with all the latest tech behind that Boris-era façade.
Plus, besides being fast, it is logically laid out and avoids confusing sub-menus. Nice swipey action, too. Some familiarisation is required at first, but the system makes sense. And if you need volume adjustability, you turn a physical knob. As the ergonomics lords intended. Easy.
Speaking of which, let’s get the sensible stuff out the way. Because it sits at near-SUV height, the I-Pace is easy to get in and out of as long as you’re aware of the swooping roofline out back. And you sit up high, affording excellent forward vision ahead.
Sinking yourself into the front seats, the Jaguar lives up to its old luxo-barge reputation in that they’re sumptuous yet firm in back-location and support, providing hours of comfort if required.
The driving position is superb, with ample adjustment and those thoughtfully-placed switchgear and controls coming into play.
Storage is ample, with deep door pockets, a sizeable centre console bin and even a secret cubby underneath the rear seat.
The Jaguar provides five USB outlets and two 12V sockets. And ventilation is as effective as you need it to be.
Problems? Pleasingly, our Graz-built Jaguar suffered from no breakages or squeaks. It is as well-screwed together as you’d expect from a luxury SUV, so there are no issues there to moan about.
However, rear vision is poor due to the tapering rear windows and shallow tailgate glass. In turn, the back-seat area can seem a bit dark and hemmed-in without the (optional) fixed glass roof.
The glove box is disappointingly shallow. And, though simple in execution, the climate control can be fiddly to figure out at first.
Of greater concern is the counter-intuitive transmission selection, since the ‘DNRP’ buttons are placed in descending order, putting ‘Drive’ up top and ‘Park’ down at the bottom.
On several occasions, ‘D’ was selected instead of ‘P’ or ‘R’, nearly leading to unintended forward acceleration into parked cars or walls directly ahead.
As mentioned earlier, our test HSE features the optional suede dash and pillar covers; along with the beautiful woven grey flannel-like trim on Alcantara-like seats, they add a distinctive classy ambience – and that’s something that translates out back, too.
While you wouldn’t call it a large wagon, it is more than sufficiently spacious for two adults, while middle-seat space is A-OK for smaller folk only as the ceiling tapers a bit too much for taller passengers. Legroom is exceptional, thanks in part to a stretchy near-3.0-metre wheelbase.
The bench seat itself does not slide or recline, but the 40/20/40-split backrest seems sufficiently angled for comfort and support, while the cushion is sprung enough not to lead to achy thighs, even for longer-legged occupants.
Amenities include rear-facing air vents, a centre armrest with two cupholders, two USB and a single 12V port, overhead grab-handles and reading lights, (quite shallow) door pockets, four coat hooks and some under-seat storage.
Further back, the Jaguar’s boot area is set up high, so requires some lifting to get heavier objects in, but the floor is long and flat, and the overall volume is quite practical. Capacity varies from 656 litres to 1453L with the backrests dropped. You can fit a 1797mm by 1244mm object in two-seater only mode.
There’s storage underneath for charging cables, as well as straps and hooks to secure loose items. And, as mentioned earlier, buyers can order a space-saver spare if the tyre-repair kit is undesirable. Note, too, that a sizeable ‘frunk’ front trunk is good for a couple of soft overnight bags.
Overall, then, equipped as our $180K HSE was, the I-Pace’s interior is likely to impress.
In terms of dimensions, at just under 4.4m long, a bit more than 1.8m wide and a fraction over 1.6m tall the Karoq is a relatively small medium SUV.
Yet, its 2638mm wheelbase means there's enough space between the axles for generous accommodation front and rear with enough room left over for a decent boot.
There's ample room for me, at 183cm, in the front with plenty of breathing space between driver and co-pilot. Not to mention heaps of storage including big door bins with room for large bottles, an open area in the centre console under an extending and height-adjustable centre armrest, various coin and oddments slots, a good size glove box, a broad lidded dash-top compartment and a drop down box near the driver's right knee.
Move to the rear, and sitting behind the driver's seat set to my position, I've got good head, leg and shoulder room. Best for two adults, although three would be possible for (cozy) short trips.
Three up to teenage kids will be fine back there, but if your kids are in a capsule, child seat or booster you'll be good with two but three will be a bridge too far.
Again there are door bins with enough room for oversize bottles, three cupholders in the fold-down centre armrest (one is 'venti'-sized) as well an oddments tray at the back of the front centre console and map pockets on the front seat backs. Adjustable ventilation is another plus.
With all seats up the Karoq offers a healthy 588 litres (VDA) of storage space, expanding to 1810L with the 60/40 split rear seat folded. A rear seat 'ski-port' style door also increases flexibility.
There are numerous bag and tie-down hooks as well as thoughtful storage spaces around the boot space. A full-size (speed limited) spare sits under the floor and while the tailgate misses out on power assistance, there's a typically useful dangling grab handle to help with closing.
For those keen on towing the FWD Karoq is rated up to a 1.5-tonne braked trailer (750kg unbraked).
Unveiled for the 2021 model year elsewhere but finally released just this year in Australia, the updated I-Pace EV400 (denoting the maximum power output in braked horsepower) brings minor visual changes, but more important ones underneath, too.
Most noteworthy are a larger onboard charger (from 7.0kW to 11kW) to substantially increase charging times, an advanced new-from-the-ground-up multimedia system, improved climate control, better surround-view camera options including integration with the rear-view mirror (dubbed 'ClearSight') and wireless charging updates.
They help smother some of the Austrian-built Jaguar EV’s wrinkles against a growing army of fresher alternatives, including the EV6, Audi e-tron (soon to gain the Q8 prefix), BMW iX, Lexus RZ and Mercedes-Benz EQC.
Kicking off from $148,800 (all prices are before on-road costs), the ‘24MY’ (2024 model year) EV400 SE is the latest I-Pace’s opening gambit, though we’re testing the HSE flagship version from $165,600.
Both grades feature an electric motor on each axle for all-wheel drive, a 90kWh battery pack and Jaguar's R-Dynamic pack.
Standard features include LED automatic headlights, electric/heated door mirrors, flush exterior door handles, an acoustic and heat-deflecting windscreen, rain-sensing wipers, keyless entry/start, a rear-view camera, part-leather upholstery, front sports seats with electric adjustment and driver’s side memory plus adaptive cruise control with lane-assist.
There's also dual-zone climate control with remote cabin pre-conditioning, configurable ambient cabin lighting, electronic instrumentation, Bluetooth connectivity, Apple CarPlay/Android Auto compatibility, digital radio, wireless charging, over-the-air updates for the 'Pivo Pro' multimedia system, voice control, a public charging cable, perimeter alarm and three-year subscription to Secure Tracker car finder, a powered tailgate, a bicycle-carrier preparation kit, 20-inch alloy wheels and a tyre-repair kit.
There is no spare wheel fitted but a space-saver is available at extra cost.
Stumping up another $16,800 for the HSE nets you upgrades like leather trim, heated/cooled front seats, heated rear seats, suede headlining, fixed panoramic roof, animated indicators, approach lights in the exterior mirrors, a head-up display (HUD) and different wheels.
On the safety front, both grades feature six airbags and a decent level of driver-assist technologies including autonomous emergency braking (AEB) as expected at this price point. More on those in the Safety section below.
Now, the I-Pace EV400 HSE R-Dynamic we tested was a 23MY model, which differs from the above in that it started from over $5000 less at $160,217, but isn’t as well equipped as the 24MY.
It also included a number of options that bumped the price up to a tad under $180,000, starting with the $5008 'Premium Black Pack', ushering in air suspension, a rear spoiler, black exterior trim highlights and 22-inch glossy black alloys.
Other goodies included a fixed panoramic roof ($3580), adaptive dampers ($2405), four-zone climate control ($1820), carbon-fibre trim finish ($1521), that ClearSight rear-view mirror ($1131), full-colour HUD ($1040), Privacy Glass ($845) and no-cost 'premium textile' (non-animal derived) upholstery.
The point is, to specify your I-Pace to what you see in our images, you’ll need to add nearly $20K to an already hefty starting price.
This is par-for-the-course for most premium brands, though paying extra for cupholders, a HUD and rear-seat climate control when some carmakers include them seems mean at these prices.
To tempt people away from the Toyota RAV4 juggernaut you need a distinctive brand personality, which the Karoq has in spades, as well as a standard features list long enough to entice but not so lengthy that it sends the asking price over the top.
And this new Karoq entry-grade model is set at $39,990, drive-away, which is a shot across the bow of the base RAV4 GX 2WD sitting at $39,760, before on-road costs.
It's also in the same ballpark as the X-Trail ST five-seat 2WD ($37,250 before on-roads) and Outlander ES five-seat 2WD ($37,740 BOC).
So, the balancing act between price and equipment lands with standard feature highlights including dual-zone climate control, adaptive cruise control, 18-inch alloy rims, auto LED headlights, an 8.0-inch multimedia touchscreen, wireless Android Auto and Apple CarPlay, a reversing camera, built-in nav and eight-speaker audio.
That's pretty handy, although it's worth noting while the start is keyless, entry to the car isn't, and while the Karoq Style and SportLine boast an auto tailgate, this grade misses out.
Clearly, there's been careful fine-tuning of the value equation but the car maintains a premium look and feel that stacks up well in the segment.
Built around a standalone architecture with no internal combustion engine versions, the I-Pace EV400 is fitted with two permanent magnet synchronous electric motors – one above the front axle and one located on the rear axle. Each produces 150kW of power and 348Nm of torque, for a system output total of 294kW and 696Nm.
Tipping the scales at 2226kg, this means the EV400 has a power-to-weight ratio of a very healthy 132kW/tonne, helping this electric crossover cross the 100km/h marker in 4.8 seconds, on the way to a top speed of 200km/h.
With a single-speed transmission sending torque to a motor on each axle, the I-Pace has permanent all-wheel drive.
The I-Pace’s standard suspension is double wishbones and coils up front and an integral link independent set-up out back.
Nowadays, the standard wheel size in the SE is 245/50R20, though ours was fitted with 255/40R22 – along with air suspension and adaptive dampers. These profoundly alter ride comfort. Towing capacity is 750kg braked or unbraked.
Ground clearance is usually 174mm, but with the air suspension, that increases to a handy 241mm in its maximum height setting. At speeds over 105km/h I-Paces with air suspension drop a further 10mm to aid efficiency. Which brings us to…
The Karoq is powered by a 1.4-litre, all-alloy, direct-injected, turbo-petrol four-cylinder engine sending 110kW (at 6000rpm) and 250Nm (from 1500-3500rpm) to the front wheels via an eight-speed automatic transmission.
With a 400V architecture, the I-Pace EV400 has the charging capability of most EVs, but not the Hyundai Ioniq 5 and 6, Kia EV5, EV6 and EV9, Genesis GV60 and Porsche Taycan/Audi e-tron GT fraternal twins, which have an 800V capability.
Under the floor is a 90kWh lithium-ion battery, with a useable capacity of 84.7kWh.
For AC charging, it uses a Type2 connector with 11kW capacity, or for DC fast charging, it has a maximum 104kW capacity via a CCS port. Both are located in the left-hand-side mudguard.
Jaguar says the official combined average consumption is 23kWh/100km. Our car’s trip computer showed we averaged 24.2kWh/100km.
The WLTP range is 408km, or 446km under the more-lenient NEDC regime. Fully charged, our vehicle indicated 407km of range in normal mode and 415km in 'Eco' mode.
After 345km, our distance-to-empty read 14km, meaning we averaged a very reasonable 359km under absolutely normal urban conditions, with some freeway driving thrown in.
Using a 150kW DC fast charger, we added 200km of range in exactly 30 minutes. It cost us around $31.
For the record, AC charging from empty to full using a regular household socket will take nearly 44 hours, or 13.5hr and just 9.25hr if you have access to a 7kW or 11kW Wallbox, respectively.
Meanwhile, a 50kW DC fast charger needs 75 minutes to go from 10-80 per cent full, or 45 minutes with anything above a 105kW charger, as that’s the Jaguar’s maximum capacity.
Skoda's official combined cycle fuel economy number for the Karoq is 6.5L/100km, the 1.4-litre turbo-petrol engine emitting 147g/km of CO2 in the process.
On the launch drive program for this new entry-level model, covering city, B-road and freeway running along the coast south of Sydney, NSW, we recorded an average of 7.6L/100km.
That's useful for a conventional combustion engine without the benefit of electric hybrid assistance. Worth noting, however, minimum fuel requirement is the pricier 95 RON premium unleaded.
You'll need 50 litres of it to fill the tank which equates to a theoretical driving range of 770km using the official figure or around 660km using our on-test result.
One of the great EV questions is just how premium brands like Jaguar, BMW and Mercedes-Benz can justify their higher prices, when comparatively inexpensive alternatives from BYD, Hyundai and Kia rely on similar electric motor tech.
Indeed, a Tesla Model Y Performance offers the same acceleration and a higher top speed at nearly $100K under our EV400 HSE as tested.
But then you snuggle into that opulent cabin, buckle up, and realise that – just as the original XJ changed big luxury sedans forever back in ’68 with its sophistication and lush ride – the I-Pace still sets the tone for luxury EV SUVs.
Push the D button and – even in 'Comfort' mode – the Jaguar steps off the line briskly. A long-travel accelerator pedal tune disguises the fact that the EV400 is actually sensationally fast, as it swiftly yet silently streaks towards triple digits in no time at all, accompanied by a dull turbine-like drone.
Select 'Dynamic' mode, and the I-Pace’s performance lives up to both the make and model names, offering instant, pinned-back-in-your-seat thrust as well as ample muscle as it glides along.
Flex your right foot and you're already tailgating Mercedes AMG and BMW M-Sport SUVs in no time. Immediate, addictive speed.
A low centre of gravity; that double wishbone and multi-link suspension layout; near 50/50 weight distribution – we’re expecting something special here, and happily, the I-Pace as optioned up with air suspension, adaptive dampers and 22-inch wheels refuses to disappoint.
The sheer urgency from the twin electric motors is matched by reassuring grip and control, even over the rain-soaked hills we belted along.
Beautifully weighted steering, offering lots of road connection, adds to the sense of confidence and calm, as the Jaguar handles corners with a flat, contained composure.
It’s only when you’re really fanging it through tight and twisty turns that this EV SUV starts to feel its considerable mass.
Keep in mind that our HSE included the optional air suspension and adaptive dampers, because together they provide impressive suppleness and sweet isolation (in Comfort mode, obviously) to go with the I-Pace’s unassuming agility.
They allow for those oversized alloys to swell out the arches without resulting in a ruinous ride – something you’d get a taste of if you switch to Dynamic mode, where everything stiffens up noticeably.
Thus specified, we’d imagine the softness would be well off the scale on the standard 20-inch rubber.
As tested, our HSE is one of the most enjoyable luxury SUVs to drive and travel in at speed, regardless of what sort of fuel you’re using.
Downsides? Around town, the limited side and rear vision mixed with the Jaguar’s two-metre width makes manoeuvring a little daunting at times.
The turning circle is on the larger side. And the traffic sign recognition tech is far from reliable and doesn’t work in concert with the adaptive cruise control so can’t automatically alter speed to what’s signposted.
Yet our biggest gripe is the lack of greater single-pedal braking when lifting off the throttle.
A set of paddles to alter the regeneration braking force as per Hyundai’s set-up would be appreciated.
This is one of the single biggest giveaways to the Jaguar’s advancing years.
Still, as a hushed, refined, comfortable and forcefully quick luxury EV SUV experience, the I-Pace, with the choice options as fitted, remains a fierce opponent against newer alternatives. Especially from behind the wheel.
Despite riding on sizeable 18-inch alloys (shod with 215/50 Goodyear Eagle F1 rubber), first impressions behind the Karoq's wheel are dominated by how composed and refined it is.
Even on coarse, irregular B-roads the car remains supple yet balanced and well buttoned down in the corners. The steering is nicely weighted and road feel is good.
Skoda says the Karoq will accelerate from 0-100km/h in 9.2 seconds, which isn't ferociously fast but the 1.4-litre turbo four delivers its peak pulling power from 1500-3500rpm, which means you're never short of mid-range urge.
The smooth eight-speed auto also helps keep things on the boil although power delivery isn't always linear. Squeeze the throttle and the engine can take half a beat before responding in something of a rush.
Shift from 'Normal' to 'Sport' mode and the transmission will respond more urgently, holding on to ratios longer and changing down more readily. And if you want full control, move the lever over into the 'Tiptronic' manual position for satisfyingly rapid changes on-demand.
The engine remains quiet, only making its presence felt at higher revs, the supportive front seats remain comfortable over lengthy stints and the brakes (vented discs front, solid rotors rear) deliver firm, progressive stopping power even under the pressure of an enthusiastic twisty backroad run.
Under the heading of miscellaneous observations, the multimedia system is easy to navigate and quick to respond, the extending, height-adjustable front centre armrest is brilliant and the adaptive cruise system responds to changes quickly yet calmly.
Tested in 2018, the I-Pace scored a maximum five-star ANCAP crash-test rating.
It managed to do well in all four of the independent body's disciplines, especially so for occupant protection at 91 and 81 per cent for adults and children, respectively, while vulnerable road users (cyclists and pedestrians) fared worst with a still-adequate 73 per cent rating.
Six airbags are fitted (dual front, head/side front and head/side rear outboard occupants), along with a raft of driver-assist systems, including AEB, lane-alert, lane-assist, blind-spot monitoring, rear-collision monitor, rear-traffic monitor, adaptive cruise control with steering assist, driver fatigue monitor, tyre pressure monitors, emergency call out and traffic sign recognition with adaptive speed limiter tech.
Note the AEB operates from 5.0km/h to 85km/h, and functions in day and night conditions in all cases including cyclists and pedestrians. The lane support systems operate from 50km/h to 180km/h.
Additionally, you’ll find anti-lock brakes with electronic brake-force distribution and brake-assist, as well as stability and traction controls.
Two outboard rear-seat ISOFIX latches are fitted, along with a trio of top-tether anchorage points for child seats.
No front occupant knee or centre-front airbags are fitted.
The Skoda Karoq's previous five-out-of-five ANCAP star rating has timed out, given the assessment was from 2017, so it's now unrated.
But that doesn't mean it's underdone in terms of active crash-avoidance tech, this base version featuring AEB (operational from 4.0-250km/h) with pedestrian and cyclist detection, adaptive cruise control, 'Lane Assist', 'Side Assist' (with rear cross-traffic alert), Parking Distance Control (front and rear), a reversing camera, rear AEB as well as tyre-pressure and fatigue monitoring.
If a crash is unavoidable, there are seven airbags on-board - dual front, front side, full-length side curtain and a driver's knee bag.
Multi-collision brake minimises the chances of subsequent collisions following an initial impact and there are three top tethers and two ISOFIX anchors for baby capsules and/or child seats across the second row.
The I-Pace is covered by an industry-average five-year/unlimited kilometre warranty, along with five years of roadside assistance.
Additionally, owners will enjoy five years/130,000km of free scheduled servicing. These are at 12 months or 26,000km.
Jaguar says the EV traction battery is covered by an eight-year/160,000km warranty, with a minimum of 70 per cent state of health.
Skoda is ahead of the mainstream pack, offering a seven-year, unlimited kilometre warranty, which is two years up on the majority of the Karoq's competitors.
Roadside Assist is complimentary for the first year, renewed annually if you have your Karoq serviced at an authorised Skoda dealer.
The main service interval is 12 months/15,000km, which is in line with most of the competition, and Skoda offers a seven-year service pack for $2750, or $393 per workshop visit, which is competitive with much of the segment but some way off the Toyota RAV4 non-hybrid at $215 per service on a capped-price deal.
On top of that, through Skoda Choice you can opt for a Guaranteed Future Value offer ranging up to five years, with variable deposit and finance currently at a 6.99 per cent rate.
At the end of the term you can trade-in for a new Skoda, pay out the balloon amount and keep the car or simply hand it back.