Your opinions - XC90 2015 trade in or extend?

[hrp123]

Hi All, whenever I look at this forum I always appreciate all the helpful time and information that people put in to help others out.

On that note, I hope you can share your opinion - I have a 65 (2015 new shape) XC90 D5 with 32K miles. I bought it 3 years old with a 1 year Selekt warranty and then paid around £595 for another year. Now the Volvo sponsored warranty is working out close to £900, and my cheapest aftermarket option is one from RAC/ALA at around £280.

The problem with aftermarket warranties is they have a mixed record of paying out and pointing out exclusions - so my guess is that despite having a warranty one could easily pay out of pocket for excluded repairs.

My car has had a leaky suspension, electronic steering control module fault, door locks replaced and the usual array of recalls.

I've calculated that with the depreciation, spending on average £800-900 per annum on warranty, service or repairs, new tyres, discs etc - I'd probably lose £12K in depreciation and expenses.

If I swap to a newer car 1/2 year old - my guess is with the lower repar/consumables but higher depreciation I'd pay maybe £14K.

The big unknown is the repair costs and services - and whether £800-900pa for a 5 year old low mileage XC90 2015 is realistic.

What would you do, spend the extra £2K upfront for a newer car - or take the risk on an older one and keep it?

Thanks for your help!

[Philip Fisher]

I am not sure I follow your figures.

14k per year for running costs inc depreciation on a 1 year old car seems a bit toppy to me.

Ball park numbers, list price of a new XC90 is circa 60k. 1 year old car you might pay absolute maximum let's say 40k. At 4 years old (so after 3 years use) you might get 20k for it. So that is just less than 7k a year.

Your mileage seems low so tyres and brakes etc.. is going to cost very little, just regular servicing at either 250 or 500 a year for servicing.

So if buying a 1 year old car to replace yours then I can't see it costing you more than 8k per year....

[hrp123]

Thanks, sorry I wasn't clear - was looking at it over 3 additional years of ownership.

So my car (5 years old) is worth 23K to the trade. When it is 8 years old, I'm expecting it to be about £15.5K to the trade so let's say £7K loss. Add in the cheaper road tax, approx £800-900 pa warranty/repairs, £1,500 tyres, brakes etc. My guess is around £12K over 3 years, assuming the repairs bills don't exceed the assumptions.

If I buy a 1 year old car at lets say £38K, in 3 years from now it's worth £26K to the trade (4 year old car), so a loss of about £12K. Add in higher road tax, one year extended warranty and a small allowance for consumables - lets say £14K over the 3 years.

I spoke to a service advisor on the phone who was saying typically the aftermarket warranty companies pay about 50% of the repair bills at their Volvo dealership due to the higher labour cost they charge. He said the earlier models had issues but many have had them addressed over the 3 years. Mine is a late 2015 and FSH at Volvo, but it is an early car.

Thanks for your time

[Director76]

Originally Posted by hrp123

If I buy a 1 year old car at lets say £38K, in 3 years from now it's worth £26K to the trade (4 year old car), so a loss of about £12K.

I think I’d factor in far more than £12k depreciation over 3 years. Current model will be ‘old shape’ XC90 by then, and you can guarantee that when it comes to sale time, the sharp intake of breath and slight shake of the head will confirm that of course, your car is the wrong size / model / fuel / colour / age etc and the sales person will see what they can do to take it off your hands!

(Major reason why we now lease our cars!!)

Good luck with the decision
D76

[hrp123]

Yeah, I didn't think about that one. Good point! On a PCP for a new car they are showing the value of the car at £22,547 a the end of four years, mine is 5 years old right now and getting a trade in value of £23K.

[Discoman]

Originally Posted by hrp123

Yeah, I didn't think about that one. Good point! On a PCP for a new car they are showing the value of the car at £22,547 a the end of four years, mine is 5 years old right now and getting a trade in value of £23K.

That £23k for a five year old must have some over allowance in it as discount off the replacement car as four year olds are trading at about that. Mind your's has low miles but I still think that figure is a couple of k heavy.

PS I was surprised how cheap one year cars are now, retailing at high thirties. Sure these maybe low spec but nevertheless they offer good value. It makes me wonder if lots will be underwater on GFVs in due course which will only hit residuals further as people hand them back. My GFV is nearly £24k at four years old and whilst I love the car it might make sense just to hand it back and start again.

[Philip Fisher]

How are you proposing to finance a new 1 year old car? A deal such as a PCP with a GFV or other method?

[Philip Fisher]

Someone on here claimed to have got 50 percent off list on a pre registered car with 61 miles on the clock. I assume not an XC90, must have been a V90cc or something......

[hrp123]

I was thinking of using my car as a deposit and getting a personal loan at circa 3.3% for the cost to change.

I've calculated that on a new Inscription over 4 years factoring in the max possible deposit, interest payments, and depreciation to the residual - you are looking at around £32,500.

I've seen a 19 plate XC90 Inscription with 20k miles on the clock at an independent dealer listed around £39K and a 69 plate Momentum with 3K miles listed at just under £41K so far. Looking for the hard combination of 360 camera, sunroof and heated seats etc - preferably with a light interior. Only maybe 10% of the cars offer all of this.

Do any of you who have the new Inscription Pro feel like the air suspension adds value?

[Moonlanders]

Originally Posted by hrp123

I was thinking of using my car as a deposit and getting a personal loan at circa 3.3% for the cost to change.

I've calculated that on a new Inscription over 4 years factoring in the max possible deposit, interest payments, and depreciation to the residual - you are looking at around £32,500.

I've seen a 19 plate XC90 Inscription with 20k miles on the clock at an independent dealer listed around £39K and a 69 plate Momentum with 3K miles listed at just under £41K so far. Looking for the hard combination of 360 camera, sunroof and heated seats etc - preferably with a light interior. Only maybe 10% of the cars offer all of this.

Do any of you who have the new Inscription Pro feel like the air suspension adds value?

I don't know if it adds value, but I love the air suspension. I only have little legs (I'm 5'7) and it means I can get in and out easily :-)