Yeah it’s overpriced, too high for the lower tier car- something like this would get me interested
For a loaded top range all bells and whistles model Including tax title and reg (I feel like at least title and reg should be baked in, it’s essentially fleet rental)
But that’s never going to happen. I’ll continue to beat them up to get good leases instead.
I have a vague memory that I read somewhere accessories like bike racks, ski racks etc would be rented as needed and brought out to you and fitted but can’t recall where. Could be imagining it.
I’m not sure if anyone can qualify, but what I would assume they are doing is bundling the average cost of insurance to cover everyone who would potentially drive these cars. The same probably goes for the payment of the vehicle itself. You’re not going to get a better discount just because you can negotiate a better deal. Some people can, and some can’t, but they are 1. attempting to make a profit, and 2. erring on the side of caution. Hence the fixed pricing at a higher rate.
I think Volvo might have screwed up in one area though, and that’s the ‘Only this model of car for 15k miles, and only for a 2 year period minimum’. Porsche, Cadillac and Ford all have options to trade at interstitial periods. Hell, Porsche will let you trade at virtually any time for as many times as you’d like. But the cost is also a min of $2k per month. Though it’s only being tested in the Atlanta market currently, just like Cadillac is limiting it to a few major metropolitan cities.
I think as more people opt into these types of ownership plans, you will see the market grow and adapt with more options on ownership flexibility. And let’s be honest. This is all coming together to get ahead of the real market intention, which is no ownership at all, for self driving car fleets.
The good thing about it is that you can get a new car after 12 month, so no hassle with lease transfer for someone who can’t commit to long-term relations But have to stick with Volvo though.
I wonder if the 12 mo switch is even a bonus. Unless your odo hits 15k as you pull into the dealer, and wore everything down within the acceptable limits, you’re basically renewing your contract for a fresher smelling interior. ( I assume 12 mo swap = new 2 yr agreement). Eventually there will be model refreshes so there’s that, and possibly more models to pick from?
True though you are still locked into 2 years @ $600 a month with this sub. I guess it depends on the refresh cycle for the models. With the phones at least usually the next iteration has more power, or new features. I feel like year 2 of a brand new Volvo model will at best be a face lift.
Sure, phones get updated more often. I think Volvo will allow switching to a different model once they test and start applying this leasing model through their whole lineup.
And you get locked in with the phones forever also, if you keep upgrading them.
I think when you look at the details it isn’t a TERRIBLE deal.
The $600 payment is not for a $35,000 car. It includes ALL of the option packages which brings MSRP to $41,815. I’m guessing you could talk that down to $39k
It’s $0 down 24 month. Most lease quotes you see assume a 5% to 10% down payment.
You would have to pay sales tax on that payment so in my state it comes to $645.
This car is LOADED with safety including collision mitigation and ACC so it should be cheaper to insure.
Using a lease calculator, for a $39k car / 0 down / 24 months I get:
Good credit: $453
Avg credit: $535
Bad credit (well who cares, you’re not getting this deal with bad credit, lol)
I pay $100 / month for insurance for my 2016 Jeep Wrangler which has 1941 technology and basically 0 safety features so I would assume a space shuttle like this with all of it’s safety add ons would be around $80 / month except that it’s also worth about $10k more so I’ll call it a push and assume its still $100 / month.
This brings it to (Lease + sales tax + insurance):
Good credit: $565.
Average credit: $672
So if you have average credit (I’m guessing FICO of 650 - 700?) this would be a pretty decent deal. Add in the fact that you can re-up in a year for a new one which you couldn’t on a normal lease and I’d say it’s ok for average credit but slightly overpriced for good credit.
BTW, in a year or two they will be releasing an EV version. I’m very intrigued by that if the price is right (they claim starting in the $35k - $40k range but I’ll believe it when I see it).
So I might take this deal with the idea that when the EV comes out I may be able to seamlessly slide into that for probably an extra $100 / month.
I think it will really come down to how the model leases versus this service which is unknown at this point. In relooking at the website though it seems the v60 wagon is now included as another car option which is cool.
As an insurance guy I can tell you this is a deal depending on where you live. If you are in a state with higher insurance costs like Michigan it could be a great deal. On the other hand if you are in a state like Ohio it isn’t a very good deal. I for instance only pay $75.00 per month for two vehicles with low deductibles and high limits. The other thing is the insurance will be through Liberty Mutual. So if you bundle your home and auto insurance and aren’t with them you will lose that discount as well.
But have to stick with Volvo though.