If you are in the market for a used car, you probably came across this question from other people – “Why are used Volvos so cheap?”
Volvo is a Swedish brand that is well-known for manufacturing sport utility vehicles, hatchbacks, station wagons, sedans, and more.
This multinational auto manufacturing company started in 1927 and with a long history of being one of the most dependable cars at a reasonable price. In spite of the fact that it is a luxury car brand, you may be able to find cost-effective second-hand models out there.
Let’s talk about the reasons why used Volvos are cheap, although they are at par with other luxury brands such as Land Rover, Mercedes, BMW, Audi and more!
Why Are Used Volvos So Cheap
For folks who have a fascination or interest in Volvo cars, it may be worth looking into this brand. Even if it is a used Volvo, you may be surprised at how good the quality and performance remains – and at a price that’s unbeatable.
In fact, when compared with other luxury car brands, used Volvos prove to be more cost-effective. This is why people who have a standard budget are able to afford one.
It is one of the most affordable cars to own, hands down. Among the reasons why this is so is that the value tends to depreciate at a faster rate. While it is common for any car to go down in value the moment you take it out of the showroom, this is even more so with a Volvo.
With the advanced features in luxury vehicles such as a Volvo, this also means that the parts are more expensive to fix when things go wrong over time. Thus, maintaining one is costlier than the average car, which causes the faster depreciating rate.
After purchasing it for just a few years, you can expect a sharp decline in the price. Some may even expect a $10,000 difference in price on a 3 year-old Volvo. Also, the price decline depends on the type of Volvo you have such as a truck, sedan or SUV.
Next reason why Volvos are cheap is because affluent individuals are not keen on purchasing second-hand vehicles. With that being said, sellers of used cars have to adjust their rate and go for a cheaper price since the average person is unlikely to consider buying second-hands that are expensive.
In the United States, there is a huge market for second-hand vehicles. When there is more supply and lower demand, this makes the price cheaper. You can see more Volvos at economical prices due to this.
And lastly, Volvos are expensive to maintain. The driving costs and maintenance fees are what cause the price to go down sharply once it is no longer brand new. Volvo car owners consider selling their vehicles instead of keeping them since they cost more to maintain than to buy a new one.
Volvo cars are one of the most well-known luxury vehicles out there that join the ranks of other prestigious brands such as Audi, BMW, Land Rover, and so on. But the prestige also means that the price point goes down for used Volvos.
In addition to a pricier maintenance cost, driving expenses, and a wider market for used cars, all of these factors drive the price tag lower. If you are in the market for a second-hand vehicle, and you prefer one that’s a luxury brand, then a Volvo may be worth looking into. However, you cannot expect to resell it in the future for a high price because of the depreciation factors we have just stated.