Poor XC90 residuals
 

Looking at trade prices for my car at just over a year old and they are a tad over 50% of list including options, pretty disappointing. Then I get an e-mail from my dealer offering me £12k off a new order including 'loyalty discount'. Then I notice that the GFV at month 49 in this is £5-6k less than on my contract. It's tough out there!

As someone who will never buy a new car, I can’t say I’m upset to hear about poor residuals!

I’m convinced Volvo and other manufacturers don’t want people to actually buy their cars, just lease them. Constant revenue stream for them, and a constant throughput of new cars required.

I think there’s more money to be made selling finance than selling cars.

Of course even if we lease or PCP vehicles the spread between discounted list and the terminal value is relevant as is the appropriate interest rate. Obviously with a lease it is far easier for manufacturers' to hide additional support but with a PCP the true state of affairs is clear to see.

Personally I struggle to find cars in the spec I want used so I tend to go new but then keep them 6-8 years so that the depreciation evens out. For the XC90 I wanted air suspension, sunroof and small wheels - not an easy find.

Wow 50% of list at 1 year old.

Makes running my T8 at nearly 5 years old and 110,000 miles look like a veritable bargain at the current value of circa 32% of list.......

Mine will be about the same at that stage. It's the first year hit which is beginning to look larger than before but given discounts are getting much bigger as well it is getting massaged out!

I'm glad I bought mine with the intention of keeping it for at least 6 years!

Didn’t the saying use to be that Porsche were a bank that just happened to also make cars? I may be mis-remembering.

I think that’s true of any scale car company these days. IIRC Ford were one of the pioneers.