Volvo Affinity Scheme

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Big Bob
Posts: 6
Joined: Sun Aug 11, 2019 9:22 am

Volvo Affinity Scheme

Post by Big Bob » Tue Aug 13, 2019 10:00 pm

Evening All
Been lurking here for a while but finally decided on a first post. I am intending to buy an XC40 or 60 next year when my current pcp deal ends. I am interested in the Volvo Affinity scheme and would be grateful if members could answer a few questions for me please?
I understand I can get a discount through the scheme after being a member of the Volvo Owners Club for 6 months - which would fit with my plans if I join now. My question is: is the discount on top of any discount I could negotiate with a dealer or get through a broker? Also, one contributor states that membership of the scheme should be declared at the start of negotiations, but would doing so mean that the dealer withdraws any discount he may have been able to offer? Also, which is likely to be greater; affinity discount or dealer/ broker discount?
Sorry if it sounds like I am trying to have my cake and eat it, but I am just trying to weigh up if it is worthwhile spending £35 on the VOC now.


AnotherXC40
Posts: 89
Joined: Fri May 03, 2019 9:55 pm

Re: Volvo Affinity Scheme

Post by AnotherXC40 » Wed Aug 14, 2019 7:54 am

Hello!

I bought my XC40 through the affinity scheme, I got the Volvo discount in addition to the offer the dealer was giving on new xc40s. The paint is also free. I received a discount of just over 11%. At the time I ordered the best discount I could find was 7% without the affinity deal so the £35 literally saved me a few thousand!
The insurance and finance offers are also totally worth it, the excess voucher works with any insurance company and it’s worth £250 so can make a huge difference to insurance premiums.


I have an additional £50/£50 referral voucher from the dealer I went with if you want to save the most possible. Send me a message if your interested.
XC40 T4 AWD R Design, Xenium, Intellisafe Pro, Winter, Tow Bar, Thunder Grey


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Bob
Posts: 191
Joined: Thu Jan 25, 2018 5:14 pm
Location: Lancaster

Re: Volvo Affinity Scheme

Post by Bob » Wed Aug 14, 2019 9:41 am

Members of the IAM also get the Affinity deal. The discount I got was better than I could get through any of the brokers at the time. I also got any discounts/offers being given by Volvo at the time, in my case a £1000 contribution if I took out 0% finance on 50% of the value of the car.

Bob
Ordered 24th February 2018: XC40, FE, T5, Crystal White, Lava Interior (additional black carpets), 19" wheels, mud flaps, Tow Bar, Polestar, was expected June/July, then 1st October.
Finally took delivery on 16th October 2018. 8-)


ak888
Posts: 5
Joined: Wed Aug 14, 2019 12:35 pm

Re: Volvo Affinity Scheme

Post by ak888 » Wed Aug 14, 2019 12:39 pm

@AnotherXC40
Joined forum as I have am in the process of looking into and hopefully soon to order an XC40. Did you negotiate a discount with the dealer and then got the additional affinity % on top (think it is 2% now) and the affinity feature of free paint? I only spoke briefly to one dealer when I started looking and he implied that the dealer can offer 5%. When I enquired about the affinity scheme, he pulled out the affinity details and said that his discount is better than affinity so no point in taking the affinity.

Can I ask about your dealer? I can't send messages as I only just joined but hope you can?


AnotherXC40
Posts: 89
Joined: Fri May 03, 2019 9:55 pm

Re: Volvo Affinity Scheme

Post by AnotherXC40 » Thu Aug 15, 2019 10:34 pm

ak888 wrote:
Wed Aug 14, 2019 12:39 pm
@AnotherXC40
Joined forum as I have am in the process of looking into and hopefully soon to order an XC40. Did you negotiate a discount with the dealer and then got the additional affinity % on top (think it is 2% now) and the affinity feature of free paint? I only spoke briefly to one dealer when I started looking and he implied that the dealer can offer 5%. When I enquired about the affinity scheme, he pulled out the affinity details and said that his discount is better than affinity so no point in taking the affinity.

Can I ask about your dealer? I can't send messages as I only just joined but hope you can?
I received the discount on top of the dealer discount didn't have to haggle - there are some good Volvo dealers and some really poor ones.

Note the affinity discount is on the base price (before tax) - this makes a big difference: for the sake of maths lets say the same discount of 5% is available on a retail and affinity offer and the XC40 costs £30,000.

Retail discount of 5% on £30,000 = £1,500 so you pay £28500.
Affinity discount of 5% on base price before tax which is £24000 = £1,200. So on the face of it it looks like the affinity discount is less, but the tax on the £22,800 actually works out to a retail price of £27,360 (22800*1.2 as VAT is 20%)= i.e. an extra £1140 saving. This is why the dealer doesn't want to do the affinity discount as they can pocket the extra £1140. So the affinity saving here off the price you would pay is: 8.8%. if you factor in the paint fact metallic paint is free with affinity then the equivalent discount required by the retail offer is 11% discount.

So a 2% affinity discount on a £30,000 car is the equivalent of a 6% retail discount or an 8.2% discount if you factor in the free paint. I think some Dealers hope you don't look into the maths of the discounts available.
XC40 T4 AWD R Design, Xenium, Intellisafe Pro, Winter, Tow Bar, Thunder Grey


AnotherXC40
Posts: 89
Joined: Fri May 03, 2019 9:55 pm

Re: Volvo Affinity Scheme

Post by AnotherXC40 » Thu Aug 15, 2019 11:04 pm

For those pondering a new car the current deal on the XC60 is much better than on the XC40 - the affinity discount on an XC60 takes the retail price of a T5 AWD Momentum down to £29946.24 (10% discount on base price before vat + £1000 discount on base price +£1500 finance offer) + whatever the dealer can discount too + free servicing. (equivalent to a 21% retail discount)
XC40 T4 AWD R Design, Xenium, Intellisafe Pro, Winter, Tow Bar, Thunder Grey


Big Bob
Posts: 6
Joined: Sun Aug 11, 2019 9:22 am

Re: Volvo Affinity Scheme

Post by Big Bob » Sun Aug 18, 2019 8:01 am

Thanks for all the replies - very helpful. I have now joined the VOC so will be able to claim the affinity discount in 6 months time, which is when I would be looking to order. Mind you, things could look very different in 6 months so I will just have to see.
The VOC has some interesting articles per se, so it’s not £35 wasted if you don’t use the discount scheme.


ejd
Posts: 8
Joined: Thu May 02, 2019 8:22 am

Re: Volvo Affinity Scheme

Post by ejd » Sun Aug 18, 2019 9:47 am

AnotherXC40 wrote:
Thu Aug 15, 2019 10:34 pm

I received the discount on top of the dealer discount didn't have to haggle - there are some good Volvo dealers and some really poor ones.

Note the affinity discount is on the base price (before tax) - this makes a big difference: for the sake of maths lets say the same discount of 5% is available on a retail and affinity offer and the XC40 costs £30,000.

Retail discount of 5% on £30,000 = £1,500 so you pay £28500.
Affinity discount of 5% on base price before tax which is £24000 = £1,200. So on the face of it it looks like the affinity discount is less, but the tax on the £22,800 actually works out to a retail price of £27,360 (22800*1.2 as VAT is 20%)= i.e. an extra £1140 saving. This is why the dealer doesn't want to do the affinity discount as they can pocket the extra £1140. So the affinity saving here off the price you would pay is: 8.8%. if you factor in the paint fact metallic paint is free with affinity then the equivalent discount required by the retail offer is 11% discount.

So a 2% affinity discount on a £30,000 car is the equivalent of a 6% retail discount or an 8.2% discount if you factor in the free paint. I think some Dealers hope you don't look into the maths of the discounts available.
But in this example how do the £30,000 retail and £24,000 base price tie up? The retail price without VAT is £25,000. A 5% discount on this means a retail price of £28,500 - just as with a 5% discount on retail price. The £1,140 difference comes from the discrepancy between the £24K and £25K figures (it's the £1K difference, discounted then with VAT added)

If the retail price is R, and the discount rate is D, the discount is R * D. The ex-VAT price is R/1.2 and the discount on this is R/1.2 * D. After VAT, this is a discount of R * D. So a retail discount and an affinity discount of the same rate are of identical value. However, there may be other subtleties about exactly what is discounted that may make one better.


Big Bob
Posts: 6
Joined: Sun Aug 11, 2019 9:22 am

Re: Volvo Affinity Scheme

Post by Big Bob » Sun Aug 18, 2019 11:54 am

Hi ejd I wondered that as well. I am wondering if anotherXC40 has added the free metallic paint into his figures somehow


Big Bob
Posts: 6
Joined: Sun Aug 11, 2019 9:22 am

Re: Volvo Affinity Scheme

Post by Big Bob » Sun Aug 18, 2019 7:36 pm

I wonder if there is some man maths in anotherXC40’s XC60 calculation too? The affinity scheme gives 10% and £1K off basic price. They quote for a R-design with a contribution of £1500 when taking finance, so the on the road price is £41335 without paint (free with affinity) which is £34445 before vat. Take off 1K and 10% gives £30101. Add vat gives £36120 which is described as the ‘revised on the road price’. Even with the extra £1.5K if finance is taken the bottom line is £34620 or £7390 discount which is 17.5% based on the price with metallic paint. Very attractive but not the 21% anotherXC40 was quoting.
Further, a couple of brokers UK car discount and discounted new cars are quoting 17% discounts on an XC60 and drive the deal are offering 10% off an XC40. Starting to think the affinity discount is good, but not spectacular.


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