Volvo moves to agency model

[Discoman]

My supplying dealer called me today to try and sell my another XC90 and I politely told him that I would like a Core with air suspension rather than the costly upsell to an Ultimate. No can do and it sounded like I was not the first to ask.

Then it was mentioned that APR was now only 1.9% which sounds attractive until the previous approx £12k discount on an Ultimate has now disappeared. Volvo has moved to the same agency model as Mercedes in that prices are fixed and offers are controlled centrally. Let’s see how this works out but pricing/monthlies (take your pick) are now getting silly certainly compared with the pre COVID world. Going to keep what I have another few years and I suspect others might too.

[Familyman 90]

I just buy the damn things- 0% APR, zero monthlies.

[AB-UK]

Originally Posted by Familyman 90

I just buy the damn things- 0% APR, zero monthlies.

With great sadness I realised that with the introduction of the Mk2 XC90, Volvo were pricing out private buyers and moving to business and lease ownership.

It would be interesting to know how many owners bought their Volvos privately and then run and maintain their cars without company or business contributions.

I suspect we are in the minority, especially for the higher end models.

[sandys]

If the Agency model leads to pricing like the EX30 being respectable which it appears to be then great, but yup, Volvos started getting really expensive once they introduces the care by Volvo thing as they don't want you buying one.

[CocoPops]

Personally, I like to walk into a dealer, take a look at the RRP, ask if they can sell for X.

If they can, I buy, if they can't, then I thank them politely for their time and go to a dealer that can.

It's how I've bought my last 2 XC90.

Now, it's 'that's the price, like it or lump it' and I don't like that model.

[Familyman 90]

Same here. I didn't get to retire in my early fifties by weeing it up the wall on monthly repayments.

[vonRypp]

Originally Posted by CocoPops

Personally, I like to walk into a dealer, take a look at the RRP, ask if they can sell for X.

If they can, I buy, if they can't, then I thank them politely for their time and go to a dealer that can.

It's how I've bought my last 2 XC90.

Now, it's 'that's the price, like it or lump it' and I don't like that model.

Same here. I purchased my V90 B5p CC Ultimate + all of the available extras (B&W, tinted windows, fuel-driven heater, folding towing bar, air suspension, etc) after I had negotiated with 5-6 dealers and ended up with the one who gave me a discount of 10k compared to retail price if I pay by cash.

[T8Nic]

Interesting move, I priced up an XC90 T8 Ultimate on Carwow and only received one offer at list price from Volvo UK, this is an £84k car which could be had for £68k in May.
I guess if the market is predominantly based on PCP / company cars then buyers would not care about the list price so a Tesla buying model will be a winner for some OEMs, including fixed discounts towards quarter end.

I am glad I bought my used MY20 in May though I may be old school but for me the overall cost / applicable discount is still key. Removing the dealer from the picture would probably lead to fewer dealers being around in the longer term.

[MK09]

Just checked my dealer’s website and it appears that this 1.9% APR, full list price PCP ‘deal’ is the one they are now offering.

I checked this against a customer loyalty email they sent me in May. Comparing the 2 offers, both for an XC90 Core petrol over 49 months, with almost identical deposits (c£8k), and very similar optional final payments, the loyalty offer with discount, deposit contribution and astronomical APR worked out at £579pm.

The new low APR full list price offer is £679pm.

If Volvo are trying to encourage their existing owners to buy another car during this cost of living crisis, they’ve got a funny way of showing it.

[Ian0803]

I recently read, that with the recent move Mercedes made, they have seen a significant drop in sales of new cars.
Not sure where Volvo will end up with this change, but maybe it will address the heavy depreciation, certainly what I suffered on my car, give the huge discounts Volvo suddenly introduced just after i purchasing mine.