My wife has 3 more months left on her 2016 Volvo XC70 T5 lease and as they aren’t making the car anymore she wants to buy it at the end of the lease. There’s only 20k miles on the car, but the buyout is $29k plus 6.5% tax. The NADA value is much lower than that, but the retail value is higher. My gut tells me buying it is a bad deal, but I need help proving it to her (other than just that the NADA value is lower). Please help me so I can show her why buying is a bad deal and leasing a new Volvo is a better deal!
Buying a Volvo is always a bad idea. Buying a used Volvo is even worse. Put her in a V90CC loaner for about $44,250 purchase or mid-500/mo lease. New V60 won’t be here until April in limited quantities.
@BigLebowski - those XC70s are good merchandise these days. Is the residual on the car about $28,650? If it’s an AWD, it has the 2.5L 5-cylinder, which is a great motor. If it’s FWD, not so much. Do you have the last 6 of the VIN?
I’m in the same exact boat. My wife’s 2016 xc70 is up in 4 months. I could probably get a heavily discounted S90 but it’s too long for her. No lease support on the Buick TourX, V90 priced out. Probably have to go back to Subaru for her 3rd Outback. Keep me posted on what you do.
While somewhat rare, search for an ex-loaner V60 AWD. I worked a deal on one yesterday. Residual kinda sucks, so it was out of our budget, but still about $385/mo for 36/15 with just first month at signing.
It makes no sense to me that they replaced the XC70 with something $15k more expensive. I have to believe that they are going to lose a lot of people who were once loyal Volvo buyers.
Try different dealers and make them an offer to buy your wife’s vehicle. I did that a few years ago with an X5. I got the dealer too take two or three thousand off the price, put new tires on it to certify it and got a 100k mile warranty for it. BMW doesn’t do that anymore, but worth trying with different dealers. The first dealer I contacted did not want to budge on the price 2nd or 3rd did.
Your XC70 was the 9th year of it’s body style. It definitely went up market with the V90 Cross Country just like your car went up market from the 2017 XC70.
Your XC70 probably had an MSRP very close to $47K. An equivalent and more feature laden 2018 V90 T5 Cross Country would have an MSRP of just over $55K.
KBB trade-in on your car shows a range of $29,400-31,100. Out west I’d say the lower half of that range is accurate. It has a huge $4,500 add for low miles in it, so if you sell it yourself you might see $33K+ for it.
As socal59 said, you should be able to get a dealer to sell it to you and make it a CPO, but it might not be too cheap to do that considering you don’t drive much. Ask a Volvo dealer what they would charge you for a warranty with maximum years and minimum miles. You can also skip the dealer and payoff VCFS directly yourself. It’s a good car with a lot of life left in it, but I’d recommend putting a warranty on it. Find a dealer that sells CNA warranties. I could probably hook you up.
BTW- your 30K service is only officially free through 12/22…
I spoke with the GMs of 2 local Volvo dealerships this morning who both told me that they pay the same amount to VCFS as I would, so it’s not worth it to them. In fact, one of them encouraged me to just buy it directly from VCFS as I would have to pay a doc fee if I did it through the dealership. What do CNA warranties typically cost?
@BigLebowski - You don’t need miles, just the maximum number of years. My guess is you could get 5-6 years from now for around $2,500-3,000. I could probably hook you up with somebody if you’re interested.
Why do you really want to buy it. We had a 2013 XC70 T6, and while it was a good car there is no doubt the newer ones we have had since have been better cars (2016 XC90, 2019 XC40, and soon another XC90). It will
Be cheaper to lease another cause the Volvo will depreciate so quickly so you’ll end up with an older Volvo, be responsible for Maintenance, and then have a 3rd party extended warranty. It just wouldn’t make much sense unless you really love that XC70
