Why Volvo dealers do increase prices to "regular people" during pandemic

I think many of You noticed that Volvo “MAY 2020” deals are much worse for people without incentives than those we saw in March. MF and RVs did not change a lot. Do they ( dealers) sell a lot so they do not care? Is this not possible for the broker to keep the same selling price?
What are Your opinions?

Simple supply and demand. We are in the middle of an unprecedented time in modern history, which have resulted in many factories shutting down.

I am not sure why you have to post broker sheets just because they are different from month to month, but I see that you took them down so not a big deal. Besides, the XC40s are most expensive, hence the higher monthly payments. You also have to remember that the incentives change each month, which also has an effect on the deals that can be offered since there is already a lot of dealer discount usually thrown into each of these.

sorry for that :slight_smile:
In my opinion Volvo is loosing a lot of potential costumers without incentives.

Incentives are still very good this month. Adding Costco to the mix makes it even better.

If you are looking for an insane discount find a demo and go for 20% pre-incentives. Haven’t seen many of those in awhile, but more than doable on a S60.

I agree with @volvo1 but only for FR/teachers/ medical stuff with Costco. It is small percentage of their potential customers. For example BMW keeps discount at very similar level every month.

First responders, medical field and teachers are all still getting paid. Great people to entice with incentives this month, less chance of default in their loan. Also it makes them look sympathetic so good for their PR

Do not get me wrong . We all appreciate what They do, but in my personal opinion when Volvo wanted to help those people providing additional incentives dealers took advantage of this.

By selling cars to those people?

I’m very confused what you’re trying to insinuate the dealers are doing.


I totally agree with volvo1 and Jim

Most manufacturers offer what? Loyalty, conquest, maybe USAA, and maybe recent grad.

Volvo is looking great doing loyalty, conquest, USAA, various professions, and Costco.

If anything, I believe they are the most generous manufacturer at this time.

All that said and to echo others above, inventory is thinning and dealers are starting to understand their pipeline. Chasing gross profit and making every deal count will become very important. It may result in fewer hackr deals until the pipeline is built back up.

Some Dealers have changed prices throughout the month as they’ve learned more about this.


simple: in May the prices are higher compering to March

You’re incorrect

And I’m not sure you understand how all of this works.

What the manufacturer and bank controls versus the dealer

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Right, but you’re specifically stating that dealers are taking advantage of the situation. Have you tracked the change in pre-incentive discount amounts? Or have the lease programs just changed? If there’s a change in pre-incentive discounts, is that because they’re “taking advantage of customers” or is it because volume bonus funding sources are no longer available due to reduced demand, and as such, they’re not able to maintain the same profit level at the same selling price?

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Sorry, i was not clear. I am referring to offers from LH brokers.

Since i remember BMW dealers/brokers offer very similar pre-incentive discounts for last several months…

Even with pre-incentive pricing remaining the same on BMWs, monthly payment amounts have changed over the past few months too. Even then, bmw is a much higher volume manufacturer, so it’s not surprising that pricing may be more consistent. Although, I’m yet to see evidence from you that they are.

Comparing monthly payments between two different broker sheets over multiple months doesn’t tell you anything. You’re missing all the critical pieces of the puzzle.


Agreed. I’m just confused at this point.

As brokers, we typically get direction from a dealer to go X% off pre rebates assuming buy rate or go $Y behind invoice assuming buy rate.

That’s what we have control over. What the dealers can dictate.

Rebates/MF/RVs are out of our control, just like they’re out of dealer control. These shift monthly.

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Yes, so Volvo dealers took advantage of this situation :slight_smile:
All pre-incentive discounts are 2-4% lower in May and again do not get me wrong i am not blaming brokers for that.

Volvo is already a lower volume manufacturer. The discount percentages being discussed here put the cars way back of invoice and deep into holdback (if not more). If a dealer can’t get a volume bonus on a vehicle, they can’t go as deep on the discount. Lowering the discount amount because their cost has changed isn’t “taking advantage of the situation”.

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It is like manifest : Why Volvo dealers do increase prices to “regular people” during pandemic LOL

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