Equity questions and Mid-Lease options, due to a change in circumstances - Volvo

[Superbenj]

As with many I have not been back into the office since March 2020, which has left me with a massively under utilized lease on a Volvo V60, which has thus far done just 7,000 out of the 30,000 miles leased and will likely not get much further than 8,000 before the lease is up in early 2023.

The KBB site suggests that the trade in value is > $43,000 while the buyout is just < $33,000

We also have an XC90 that the wife is driving currently (also well below mileage), her commute has just increased to circa 40 miles a day. She gets free electric charging at work, so is suggesting we sell the V60 and she moves into an electric car.

Is there anyway we could use any equity in the V60 to put towards an Electric XC40, or a Polestar 2? Could we really in effect get $10k off the selling price with the V60 equity?

Or would be just as well off buying out the lease and then trading the car in for a Hyundai/ VW etc… electric model, if we ultimately prefer that option?

Thanks!

[Ursus]

You can only switch to another Volvo (there is an all electric C40, for example). You will need to negotiate your trade though. Buying out gives you more options, but there is sales tax to consider.

[Justin_B]

KBB is BS. Get real quotes from dealers online. Get your pay off from Volvo and make an educated decision. If you order something, try to get financing with no payments for 90 days. Volvo leases are not a good deal right now

[jeisensc]

@Superbenj

The KBB site suggests that the trade in value is > $43,000 while the buyout is just < $33,000

KBB isn’t a good gauge of actual value. You should get quotes from the third parties as if you own the v60 outright to recalibrate

List of places to sell or value your car online

For the quickest results: Copy your VIN to your clipboard and just paste it into each site. Quicker than plate lookup. Enter “I own the vehicle” where applicable — you don’t need to get into the details of your lease payoff or loan balance until you’ve eventually chosen one entity to sell to. Use a Google Voice or some other device you can turn off at will. Otherwise your real phone will be bombarded initially. In alphabetical order: Buyer Name Direct Link Review Link AutoCo…

From there you can try and negotiate your trade on another Volvo. C40 and XC40 P8 inventory is scarce so you may have to order something.

[max_g]

@Superbenj

Or would be just as well off buying out the lease and then trading the car in for a Hyundai/ VW etc… electric model, if we ultimately prefer that option?

This is a better option than trying to trade it in for a Polestar or Volvo EV, so definitely pursue this. But keep in mind selling outright may be a better option even though you lose the tax benefit of trading in. You need to compare both scenarios, i.e.

A. Buy the V60; sell to the highest bidder; buy your next EV with full sales tax. Or,

B. Buy the V60; trade to the best offer among just XYZ dealers; buy your next EV with the sales tax reduced by your trade-in.

[Leaseboy]

Any Volvo EV is going to financially violate you. If you run the numbers I bet you’d do better just buying that car out and either having your wife drive your gas volvo or sell it, take the money, and have her drive the xc90. You should do that. Do you anticipate her consuming 2000 gallons of fuel ($10k worth) any time soon?

The fuel savings from hybrids and EVs often does not pencil out. It absolutely will not with any ev you can get your hands on from volvo right now. They will only be obtainable with a major market adjustment anyway or a very long wait.

I have two plug in cars. I like them but there’s really nothing out there right now.

[Superbenj]

Thanks all. Great food for thought.

She’s estimated she’s only spending $225 a month in gas at the mo, whcih coming from the UK seems like an absolute bargain to me!

Financially there certainly seems like there is v little incentive to make the switch.