Your opinions - XC90 2015 trade in or extend?

[Philip Fisher]

So.

Seeing as you will be borrowing money anyway and bearing in mind some of the comments on residuals I would suggest the following.

Sell your XC90 now and get the maximum value from it. Buy your chosen nearly new XC90 on a PCP with a decent GFV for 3 years time. That way you are protected from any falls in residuals and also you get maximum value for your existing car.

[hrp123]

Yes I think buying a new one and losing about 35K in interest and depreciation over four years is probably not right for my requirements and mileage.

I have never used PCP before so looking into it for the first time - what surprises me is that I am seeing quite different assumptions on the GFMV for a Momentum which is forecast to be 15500 in year 5 vs an Inscription at 20000 in year 5 using a 4 year PCP for a 1 year old car.

I guess the game is to find which car offers the highest GFMV and I wonder if different lenders use different depreciation scales?

[SignumGB]

Was at the dealer the other day for some repairs and saw the price tag of a a year old or so second hand XC90... Eye watering £50,000! When did Volvo get so expensive?

[hrp123]

Yes I feel like prices have jumped on new XC90s quite a bit over the years - probably people would only see it as a £50 difference on a monthly payment though

[jonnyu]

The car is already 5 years old. I would wait for 2022 for the new SPA2.

[Philip Fisher]

Originally Posted by jonnyu

The car is already 5 years old. I would wait for 2022 for the new SPA2.

Plus 2 years for it to be debugged so make that 2024. You could spend a lot of money keeping an older car on the road for that period of time.......

[Philip Fisher]

Originally Posted by SignumGB

Was at the dealer the other day for some repairs and saw the price tag of a a year old or so second hand XC90... Eye watering £50,000! When did Volvo get so expensive?

However I can't imagine anyone actually paying that...... They often display high secondhand prices to visually support new prices.

[Kev0607]

I suppose it boils down to a question of finances. You can keep your car, spend the extra to renew the warranty & hopefully nothing too major goes wrong. If it does, providing its not classed as being "wear & tear", then it should be covered under warranty. Note, its best to fully read the small print on these warranties because some of them aren't worth the paper they're written on. I don't know what is & what isn't covered on an aftermarket one, but there's some good ones out there. If it gives you peace of mind & seems to cover many of the expensive parts, then why not go for it? Paying to extend your warranty is certainly cheaper than changing your car for a newer model (Do your research on what/what isn't covered though).

The only "cost" you'll have to keep your existing car is the cost of the warranty (if you decide to renew it), general maintenance that isn't covered by the warranty (servicing, tyres, bulbs etc) & your road tax, fuel & insurance (assuming the car is paid for). Changing your car for a newer one means you'll still have all these costs & monthly payments up on top of it... In essence, you aren't saving anything by changing to a newer model. Yes, it'll be the newer shape etc, but you haven't "saved" anything. I'd keep your existing car personally, especially due to the uncertain times we're currently living in. Its only five years old, there's plenty of life left in it yet!

The alternative is to trade your car in for a newer model (if this is definitely what you want to do). So, first off, you'll lose money by trading it in (You'll get more selling it private). Then there's the cost to keep your monthly payments the same - The car that is 1/2 years old is going to be worth considerably more than your 5 year old car - You have to factor that in too. Using your car as a deposit (if you trade it in) will offset a big chunk of the cost, but there still could be a fair bit difference between the cost of the new car & the amount that's actually on the table (your car), meaning you could end up with a hefty amount to finance. It costs to change a car, especially if you're jumping up a few years & want to keep your payments more or less the same (unless you can afford for them to increase)... I'm sure you're well aware of this though.

Another alternative is a lease vehicle. Is this something you've considered? Yes, you'll never own the car. However, what you pay in monthly payments is more or less what you'd be losing in depreciation if you purchased the same car on finance (The lease vehicle will be brand new, not used). Plus, you have the option to add things to your lease package like tyre cover for an extra premium per month, as well as things like a service plan (also for an additional monthly cost). Not forgetting that you'll have to leave a deposit down if you decide to lease a vehicle (usually 3 or 6 months payments) & ensure you select the right package for based on the mileage you do per year.

Going down this route means you'll have a brand new car, but if anything goes wrong with it, you just phone the lease company & let them deal with it. You'll get a like-for-like curtesy car until yours is fixed, so there's not really any inconvenience for you. The only downsides to the lease vehicle is you'll never own it, you have to pay for any damage that may occur throughout your time leasing the vehicle (Car is checked when its handed back to the finance company) & you'll be charged extra for any additional miles that you do over what was agreed in your original contract. Lease vehicles are really common nowadays, so its something to think about.

[soupytwister]

It's an interesting question....!!

You have to consider the cost of repairs very carefully these days. The comms module in our XC90 failed under warranty, and it was £1700 to replace/repair. The cost of a replacement active bending shadow masking headlight is £1000+. Not like the old days where a bulb was £2 from Halfords Our engine had an oil leak which was about £3000+ in repairs. My 8 week old S60 had an electrical issue which was also £3000+ to fix.

Leasing relieves you of these concerns as everything is done under warranty. Yes, more expensive to lease, but as cars get more complex and expensive, I'm not sure I'd want to have a 3-5 yr old XC90 on the basis that for example if a headlight fails, that's a £1000+ repair! Sure be some headlights in the breaker's yards, but still won't be cheap or common (yet).

Tricky one. I do feel as cars get more complex (not just Volvo), the cost to maintain a 5-10 year old car will get prohibitively expensive. Yes, you can do without a comms module if it breaks - you can just tether to your phone instead. However, you lose the VOC and app functionality etc. Not a big deal for a 10 yr old car, but not ideal is it.

Unfortunately, the lease costs are still a bit pricey on an XC90 post-covid. Best I've seen so far is a bit over £550/month on a 1+35 on 8k/yr miles. VED is included, you'll never have to go through an MoT, fully under full official Volvo warranty for 3 years, unlikely to need replacement parts other than maybe tyres (depending on your mileage). Drive it, hand it back. Simples. I've leased 4 cars and never had any excess charges for damage (there was the odd scratch here and there, and the odd scrape on the nearside front wheel, but never been charged).

Also, if you time it right, sometimes the lease deal works out better than the depreciation. I leased a Hyundai i30 for 18 months and it was £94/month on a 9+17. Total cost over 18 months was £2400. There is absolutely no chance in hell you'd be able to buy a brand new car and sell it for £2400 less after 18 months It didn't even visit the dealer as was a 24 month service schedule and needed no replacement parts. Outstanding. Not much more than some people pay for the latest iPhone per month

[soupytwister]

To give you an idea....4 years on a XC90 lease with no deposit is £548/month so a total of £26000 over 4 years. No upfront deposit, none of your money invested in a depreciating asset and just hand it back at the end with no worries over what it is or isn't worth. You're essentially paying a monthly fee for the depreciation. Offer currently with Stoneacre Volvo so an official dealer.

Volvo XC90 Estate
2.0 B5P [250] Momentum 5dr AWD Gtron
Initial Rental:
1 Months
Term:
48 Months
Mileage:
8,000 p/a
Transmission:
Automatic
Fuel Type:
Petrol
Road Tax:
Fully Included
Maintenance:
None
Finance Type:
Personal Contract Hire
£548.77p/m
Initial Rental:
£548.77
Additional Fees:
£0.00
Total Lease Cost:
£26,340.96
All prices inc. VAT