Do new Volvos hold their value?

Do new Volvos hold their value?

Volvo is a Swedish brand that is known for its safety, reliability and innovation. Volvo cars are popular among drivers who value comfort, performance and environmental friendliness. But how well do new Volvos hold their value over time?

The answer depends on several factors, such as the model, the year, the condition, the mileage and the market demand. According to IntelliChoice, a leader in car value analysis, some Volvo models have better resale values than others. For example, the 2021 Volvo XC40, XC60 and XC90 SUVs are projected to retain more than 45% of their original value after five years of ownership. These models are in high demand among buyers who want spacious, versatile and luxurious vehicles.

However, other Volvo models may not fare so well in terms of resale value. IntelliChoice predicts that no 2021 Volvo sedan or wagon will hold more than 42.5% of its original value after five years. This is because sedans and wagons are less popular than SUVs in the current market, and they face more competition from other luxury brands. Additionally, some Volvo models may suffer from high depreciation rates due to their expensive price tags, low production numbers or limited availability.

Another factor that may affect the resale value of new Volvos is the electric vehicle (EV) trend. Volvo has announced that it plans to become an all-electric car maker by 2030. This means that some of its current models may become obsolete or less desirable in the future, as buyers switch to newer and more efficient EVs. IntelliChoice estimates that some EVs will lose more than 70% of their value in five years, which may also apply to some Volvo hybrids or plug-in hybrids.

Therefore, if you are considering buying a new Volvo, you should do some research on the specific model you are interested in and compare it with other similar cars in terms of resale value. You should also consider your driving needs, preferences and budget before making a decision. A new Volvo may be a great choice for you if you value safety, quality and innovation, but you should also be aware of the potential depreciation risks and costs involved.