Portland Volvo Chronicle
March 2012
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Letís Trade Keys
Equity, high residual values and a $1,000 Loyalty Bonus make this a great time to trade

If you've made investments in the stock market or in real estate over the last three or four years, you're probably questioning your own logic. But many drivers of Volvos less than five years old don't realize that they may have a significantly higher equity position in their cars than they might think.

The shift in residual value – or the predicted value of your car when you originally leased or purchased** it – has a great impact on what you pay every month.
For example, in the economic doldrums of 2008, predicted values of all cars were judged to be low. A 2008 Volvo XC90 FWD with a 36 month lease had a 41 percent predicted value at lease-end. Today, that Volvo is actually worth a lot more than it was judged to be worth back in 2008, partly due to the hot used car market.

Simultaneously, the lease-end value of a 2013 Volvo XC90 is now much higher, at approximately 59 percent.

The result? Now, not only is do you have significant equity in your used Volvo, but the predicted value of a 2013 Volvo is much higher, making the payment significantly lower.
Several other factors unique to Volvo make this a great time to trade keys on a new Volvo:

  • Maintenance: 2011, 2012 and 2013* Volvos were covered under industry-best Safe + Secure Plan, with maintenance covered by Volvo, so your equity position is much higher. If you’re driving an older Volvo, it’s a great time to get in on five years of complimentary maintenance
  • Loyalty: By staying within the Volvo brand, we can get you out of your current lease and into a newer vehicle much earlier than if you decided to opt for another brand. Plus, if you stay with the brand, you’re entitled to a $1,000 Volvo Loyalty Bonus.
The best way to determine the equity value you have in your Volvo is to stop in for an appraisal of its value. It only takes a few minutes and it allows you to more accurately determine your financial position in your investment.

Click the Schedule My Test Drive button below and we'll contact you to schedule your appraisal.

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