This is my first post, I apologize if I’ve missed something obvious. I leased a 2023 Electric Volvo C40 ultimate with the twin motors in December 2023. So far, I’m liking the vehicle. However, soon after I leased, the values of Electric Vehicles plummeted. If things keep going down this trajectory, I can see where the vehicle at turn-in can be a lot less than the buyout price.
Does Volvo Financial ever run promotions to encourage buyouts to stave off future losses, or are they pretty much protected by policies protecting capital depreciation beyond a certain point. I’m just trying to think about the future and what options I may have. I don’t see myself paying the buyout price at this point and I know they do early pull ahead promotions.
It’s very rare to see a lessor offer a buyout price that is less than the stated rv on the contract. If I recall we saw BMW during the first part of Covid offer reduced buyout on certain models for a brief period of time. Outside of that I cannot recall any other less tha RV offers from lessors.
And they were unsolicited offers to a very small group of lessees.
As to why no lessors offer buyouts at reduced market rate prices…
There are a lot of reasons I can think of, but I think it’s more of an accounting exercise/advantage for the lessors.
With a lease I always assume that the car won’t be worth buying at the end, because among the main ways leases are subsidized is by inflating residual values.
Broadly speaking, compared to just purchasing the car upfront, leasing and then buying out at the end is going to be the more expensive way to drive the same car over the same term.
People generally don’t come to this conclusion because they don’t look past the amount of each installment payment relative to a monthly budget cycle.
