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Wednesday, April 11, 2012  
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Trade Your Keys for a New Volvo
Equity in your lease and a hot used car market can mean your Volvo is worth more than you think

If you’re a current Volvo owner or lessee, there’s important news about current demand for used Volvo vehicles. Today’s used car market and a favorable leasing environment is allowing Volvo dealers to offer unique opportunities to get out of your old Volvo and into a brand new model for a lot less than you’d expect.

In the last 12 months, there has been a significant shift in “residual value,” which is the predicted value that a car will have when a lease reaches the end of its term. This predicted value has a great impact on your monthly lease payment, as well as the equity you may have in your current Volvo.
When you lease a vehicle, you essentially pay for the use of that vehicle for a certain period of time, less the predicted value of the vehicle at the end of the lease. If the predicted value is low, monthly payments go up.
During the economic downturn of 2008, predicted values for all cars were low. Consequently, monthly lease payments were higher.
The good news, though, is that the higher monthly payments during that time provided Volvo owners with a lot more equity in the vehicles they leased during that time.

Today, new vehicles have a much higher predicted value at the end of their lease terms. Cars that might have only had a predicted value of 41 percent after a three year lease now can have a much higher predicted value of almost 60 percent. That means the monthly payment on a new lease can be lower than the one you have now.

At the same time, the used vehicle market is hot, and we’re interested in your car, particularly if it’s in excellent condition. And if you’re a current Volvo customer, you’re eligible for a $1,000 loyalty offer in addition to the best-in-class Safe & Secure Coverage Plan, featuring five years of free scheduled maintenance and a five-year, 50,000 mile warranty.
It’s a perfect storm for Volvo lessees and owners interested in moving into a 2012 or 2013 model. Visit with us today and learn more about how the equity in your current Volvo can provide a significant boost in savings on a 2012 or 2013 model.

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