I currently own an XC40 on PCP and was interested in a full electric XC40 as my next car but the dealer can only sell me one cash or do Care by Volvo.
I understand that's Volvo's strategy now but I'd love to know who can afford or can rationalise what they quoted me, £749 per month!
That's more than my mortgage and I'd own nothing. It might be a little more understandable if it's a two person household and one car but even then, you'd have to be doing pretty well.
According to the IFS, on my own I'm in the top 97% percentile of earners in the UK and I'm not sure I want to afford it, I could lease myself a Porsche and really throw my money down the drain in fashion!
Care by Volvo - How do you afford it??!
It would include everything except insurance, no down payment, so servicing, maintenance etc.
If you consider PCP and include the down payment spread over the term, PCP is still cheaper. I got 5 years servicing and warranty so thats the same but I do have to replace wear items like tyres.
With PCP I have a slight chance of some equity at the end after the balloon payment, based on the mileage or market sentiment, so that's an additional benefit.
I guess the comparative cumulative cost over any period is an individual decision, I guess my question is, how big is the market for people who can afford £750 a month who want the smallest Volvo SUV.
If you consider PCP and include the down payment spread over the term, PCP is still cheaper. I got 5 years servicing and warranty so thats the same but I do have to replace wear items like tyres.
With PCP I have a slight chance of some equity at the end after the balloon payment, based on the mileage or market sentiment, so that's an additional benefit.
I guess the comparative cumulative cost over any period is an individual decision, I guess my question is, how big is the market for people who can afford £750 a month who want the smallest Volvo SUV.
Remember this is a £60,000 vehicle so it's never going to be cheap. Some of the petrol XC40s on Care by Volvo are closer to £500 per month
When I have done the maths in the past, I have found my running costs (service, tax, tyres etc) have added between £100 and £150 per month when using real figures so you need to be taking that sort of money off the £750 you are quoting to make a PCP comparison. Then consider a £3600 up front payment is also worth £100 per month on a 36 month PCP and suddenly your like for like quote is more realistic.
There is also an argument that the all electric car will be cheaper to run although this is not always the case. Depending on where you can charge, this can work out more expensive than petrol per mile.
So you do have to be comparing like with like with the Volvo deal but ultimately, you are looking at a £60,000 car. Does your lifestyle actually support that?
When I have done the maths in the past, I have found my running costs (service, tax, tyres etc) have added between £100 and £150 per month when using real figures so you need to be taking that sort of money off the £750 you are quoting to make a PCP comparison. Then consider a £3600 up front payment is also worth £100 per month on a 36 month PCP and suddenly your like for like quote is more realistic.
There is also an argument that the all electric car will be cheaper to run although this is not always the case. Depending on where you can charge, this can work out more expensive than petrol per mile.
So you do have to be comparing like with like with the Volvo deal but ultimately, you are looking at a £60,000 car. Does your lifestyle actually support that?
XC40 T5 Recharge Inscription Pro - Denim & Blonde
Good points, maybe it's "sticker shock", I can calculate how they compare but £750 still feels like a big whack of money, even for me and I think I'm pretty fortunate so I do wonder who Volvo has estimated they'll be selling them to.
Maybe I just need to wait 5 years and buy one cash second hand!
Maybe I just need to wait 5 years and buy one cash second hand!
If you'd love to know who can afford then that would be me. However I wouldn't personally go down that route - I prefer the cash option.
I retired early a few years ago in my mid 50s, and £750/month is small beer compared to my monthly pension income. That, combined with no mortgage, just bills, works well for me.
But I did over 30 years of work to earn the pension. I deserve to spend it
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I retired early a few years ago in my mid 50s, and £750/month is small beer compared to my monthly pension income. That, combined with no mortgage, just bills, works well for me.
But I did over 30 years of work to earn the pension. I deserve to spend it
.Hi,
Crazy amount of money to spend on a car, did a build for a x40 recharge mid spec £809 pm !!! That’s £29,124 in payments over 3 years and you don’t own a bolt. Wouldn’t dream about doing that at the moment, and yes I could afford to it if I wanted
Crazy amount of money to spend on a car, did a build for a x40 recharge mid spec £809 pm !!! That’s £29,124 in payments over 3 years and you don’t own a bolt. Wouldn’t dream about doing that at the moment, and yes I could afford to it if I wanted
T4 recharge, plus spec, 23my
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Deleted User 3359
But it includes all running costs except insurance... As a long term car rental it seems pretty reasonable... and you can terminate with 3 months notice
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Chris John
- Posts: 498
- Joined: Mon Jul 20, 2020 9:08 pm
Aren’t you a big head!Hawkwind wrote: ↑Sat Jul 03, 2021 3:50 pm If you'd love to know who can afford then that would be me. However I wouldn't personally go down that route - I prefer the cash option.
I retired early a few years ago in my mid 50s, and £750/month is small beer compared to my monthly pension income. That, combined with no mortgage, just bills, works well for me.
But I did over 30 years of work to earn the pension. I deserve to spend it
Volvo XC40 T5 R-Drive Pro. Thunder Grey with lots of extras
