Volvo V90 - Volvo V90 / V60 Question mark on Residual values | Motoring discussion | Back Room Forum

Mon 27 May 2019 21:19

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - Jes

Hello all,

This weekend I parted with my Skoda Superb L&K Estate after 2.5 years of ownership in a private sale transaction. No particular reason for the sale apart from the fact I like to change cars just prior to them ending the manufacturers warranty. I'm a little unsure on what to buy next and considering the following:

Volvo V90, V60, another Superb estate, Passat Estate (GT or R-Line)

The new car must have a panoramic roof (like the previous 2 cars).

Never owned a Volvo before so I visited the nearest dealer and drove a V60 Momentum Pro. Nice car and I really liked it. The sales guy mentioned the Road Fund Licence changes and that as this car had a list price of £44k when new, it would attract a higher rate of RFL (about £465 per year) - the screen price was £29,000 and the car was 7 months old. This means the car has lost at least 35% of it's value in 7 months!

I came home and did some research on V90s and V60s. They all seem to have at least 30% knocked off their value within the same period. To me this seems huge, is it ? Could it be the RFL kicking in and also affecting values ?

I'm in a bit of a quandary as what to do as I sense the hit of value around the 3 years old mark could be colossal ..

What else has a panoramic roof that isn't hit by the RFL change ?

Thanks, John

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Mon 27 May 2019 21:44

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - Big John

The Road Fund Licence change is only for the first five years of the cars life and cars over £40,000 pay an extra £310 /year. If you by at a year old that's an extra £1240. Not much compared to the price of depreciation.

Even the S90/V90 pre the car tax changes depreciate quickly so I don't think RFL is the main reason for the price drop. PS what is this list price you talk of? - can't remember the last time I paid anywhere near full list on any car.

Having said that - A firiend has a 67 plate S90 D4 and it's a great car - My only worry , have they fixed that D4 EGR issue yet as seen in other Volvo cars.

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Mon 27 May 2019 21:57

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - Jes

Thanks for the reply. I'm a little more concerned about the appeal of the car 3 years down the line when I go to move it on and the buyer is going to continue picking up a higher RFL charge - Personally I think it could affect the sale-ability of the car.

I know what you mean by list price, but that's only how the RFL is worked out in this case, not what I'm paying.

I need to look at D4 EGR issues then - thanks for the heads up.

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Mon 27 May 2019 21:59

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - NARU

I've been looking at used V90 cross countries. There are some good priced deals out there.

If I were buying new, I'd be wanting about £10k off the price.

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Tue 28 May 2019 09:41

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - daveyjp

Remember the list price includes VAT - on a £44k vehicle is is not an insignificant amount - £7,333 and that skews the deprecation over a very short period.

It is however an indication of how difficult larger Volvos are to sell new - if the fleets don't want them the number of private owners is limited - as experienced by Ford with the Mondeo.

The V90 estate is now gargantuan and at almost 5m long may well be in the too large category for most owners so they have to be keenly priced to sell. This may well be an issue in 2-3 years time.

Edited by daveyjp on 28/05/2019 at 09:42

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Tue 28 May 2019 09:45

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - Avant

It should be possible to find what you want by (a) not going for a diesel, whose ability to hold its value will probably get worse; and (b) if a lower RFL is important to you, choosing a car which cost less than £40,000 in the first place.

For information, I had a May 2016 V60 for two years. Volvo had apparently just fixed the EGR problem on diesel engines before I got mine, and although it was stodgy and unexciting to drive, it gave no poroblems.

If I were you I'd go for another Superb estate, with the excellent 2.0 TSI petrol engine. A new one is well under £40k, and there should be plenty of nearly-new ones for under £30k.

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Tue 28 May 2019 10:03

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - barney100

Thing with Volvos is that they can last years and years. I buy them as a long term project when the depreciation curve has flattened out.

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Tue 28 May 2019 10:31

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - SLO76

High end Volvo’s (XC40/60/90 aside) have always been heavy depreciators, even in the 80’s and 90’s. Estates command better residuals than hatches and saloon but the premium family market has moved towards SUV’s leaving expensive saloons etc tumbling. I remember our local dealer throwing money away trying to get my old man to buy a 960 3.0 saloon once.

New list prices are hugely over optimistic too which is a recipe for massive losses. It would be insanity to pay £44k for a V60, a car that’ll be lucky to fetch £10k by its third birthday. I’d bargain hard or go for an XC60 instead. Personally I’d spend a hell of a lot less on a good used petrol Mazda 6 Estate instead which will do everything you’d need and leave you with £15-£18k change and a smug smile in your face. No need to worry about the manufacturer warranty either, they don’t break.

Edited by SLO76 on 28/05/2019 at 10:32

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Tue 28 May 2019 10:51

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - Eyan1

I would look at a lease , the Volvo lease price is usually very competitive and I think would cost less than buying and selling your car.

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Tue 28 May 2019 11:01

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - SLO76

I would look at a lease , the Volvo lease price is usually very competitive and I think would cost less than buying and selling your car.

Agree. I certainly wouldn’t buy one new or nearly new. But remember to shop around as lease rates are negotiable and vary hugely. Lease firms get huge discounts which are unavailable to Joe Public. It’ll protect you from any unexpected shifts in the market and huge drops in value. You’ll know all your costs upfront and usually it’ll be cheaper than buying. I certainly was with our CRV but this is dependent on your mileage being around 10k or less. Rates tend to soar above this.

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Tue 28 May 2019 11:23

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - 72 dudes

OP, the most expensive V60 Momentum Pro (the T5) has a list price of £36610, so the one you were looking at must have had a shed load of options fitted. Options are notorious for failing to recoup money on re-sale, so I doubt that the real depreciation figure is much worse than an equivalent Passat, 520d or C220d etc.

The thing with Volvos, and I've had 3, is that you don't get bored with them, they exude appeal and impress you quietly day to day.

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Tue 28 May 2019 12:35

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - Falkirk Bairn

Leased / PCP contracts are worked out on the the discounted price the lease company receives on the base price for the model.

Extras do not have a residual value unless on really exotic cars - spend £2,400 on extra in a 36 month contract and it adds at least £66 to each monthly payment.

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Tue 28 May 2019 13:36

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - Eyan1

If I was in the market for a new car I would be considering a petrol v60 or xc60 . Lovely cars comfortable , not as sharp as a bmw, jag or Alfa but not far off . Only thing that puts me of is the touch screen controls (that so many manufacturers go for these days).

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Tue 28 May 2019 14:08

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - badbusdriver

OP, the most expensive V60 Momentum Pro (the T5) has a list price of £36610, so the one you were looking at must have had a shed load of options fitted. Options are notorious for failing to recoup money on re-sale, so I doubt that the real depreciation figure is much worse than an equivalent Passat, 520d or C220d etc.

According to the info on this website, www.honestjohn.co.uk/carbycar/volvo/v60-2018/data/, there are 5 V60's listed as being over £40k, with the dearest being the £41460 2.0 D4 190HP Inscription Pro Auto Stop Start (fairly rolls off the tongue doesn't it!).

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Tue 28 May 2019 22:17

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - Senexdriver

I mentioned on another thread that I’m considering a V60 for my next car. I haven’t driven one yet, but I’m interested by your comment that it wasn’t as sharp as a BMW, Jag or Alfa. My current car is an A4 Avant 190 bhp petrol which goes and handles very well, although maybe not as well in the handling dept as a BMW. I suspect I might find the Volvo a little wanting, but I do think it’s a lovely car and I’m now of an age where comfort is important, one thing that isn’t so great with the Audi’s firm suspension.

I’d be interested to hear about reliability if anybody has any experience to report

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Tue 28 May 2019 19:43

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - Avant

"The thing with Volvos, and I've had 3, is that you don't get bored with them, they exude appeal and impress you quietly day to day."

Clearly you didn't have a diesel V60.

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Tue 28 May 2019 23:39

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - Jes

Thanks for all the comments. As nice as the Volvo was, I think I'm going to disregard it and continue the hunt for another Superb.

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Wed 29 May 2019 11:26

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - 72 dudes

"The thing with Volvos, and I've had 3, is that you don't get bored with them, they exude appeal and impress you quietly day to day."

Clearly you didn't have a diesel V60.

Ha! No I didn't Avant.

After posting, I wondered if you would come back and comment!

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Wed 29 May 2019 17:36

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - concrete

If you change cars every 30 months or so then leasing must be the answer. A given rate of depreciation built in, set monthly payment, full warranty and roadside cover and then no hassle trying to sell on. My XC60 is excellent. Goes back in 9 months and will have 23Kish miles and in mint condition. A lovely car for the forecourt. The 36 month lease cost me less than the depreciation I worked out from buying guides over the period. No brainer really.

Incidentally I too went from an owned Superb to my lease Volvo. No regrets.

Good luck and cheers, Concrete

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Thu 30 May 2019 23:12

Volvo V90 - Volvo V90 / V60 Question mark on Residual values - Jes

I have considered leasing but I've messed up on all the timings of another car - I've sold mine privately, I need a car for work and leases tend to be 3-5 months , unless I get a 'stock' lease car.

One of my requirements is a panoramic roof. I've had these in the last few cars I've owned and now want one again..

I'll continue to look (purchase and lease) but I won't be purchasing the v60/v90

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