Value of used Volvo (low residual value). Why?
 

Unless my math is really flawed, 2004 S80 T6 model was $44K when new. Now (August 2008) this car with standard mileage is worth around $13K (Edmunds.com). That's only 30% of its price when new. Why such a drop in value? Most of the cars (at least the better known/reliable car makers) have about 55% residual value when car is 3 years old and about 40-45% when car is 4 years old.

I do not want to start a discussion that will result in throwing flames but I am trying to understand used Volvo's value because I am in a market for one.

Thanks.

RE: Value of used Volvo (low residual value). Why?
 

I have a S80, the car has been fine. I think the T6 at 44k was overpriced, the 2.5 Turbo could be bought new in the mid 30's. Like the Audis, Volvos dont have a strong resale market. However, if you buy in the 30's and you get 20k less after 5 years, its a good value for a luxury car.

I would suggest you buy the T6, its a good value. I wouldnt buy the new S80's, since they are putting in engines made in England(maybe for cost savings?). I feel the S80 was a great car that you will be happy with. The only cavaet is very poor customer care by Volvo US. Im afraid Ford hasruined the brand.

RE: Value of used Volvo (low residual value). Why?
 

Generally, a low residual value indicates that the demand for the vehicle is just not there. It doesn't necessarily mean the car isn't any good. Maybe it's the car's styling. However, from what I've heard talking to Volvo mechanics, they don't speak highly of the S80 T6. Maybe they don't like it because it's too difficult to work on one. I don't know. But it also doesn't help that publications like Lemon-Aid or Consumer Reports don't recommend the S80 either.

From my own experience with Volvo's, I suspect the S80's low value may also come from mediocre (at best) service at the dealerships. Talk to anybody who has had a Volvo long enough and you may discover a frustrated owner forced to go to a dealer for service because Volvo corporate refuses to share diagnostic repair info with private garages. People talk and share their dealership experiences with one another. I mean seriously, with all competition out there, people will look to where they're treated the best and can get the best deal on a car, Volvo or not.

If you still want an S80, my suggestion would be to line up a good mechanic you trust - one who has worked on S80's - and talk to him. Who knows? You might be surprised.

Good luck to you.

RE: Value of used Volvo (low residual value). Why?
 

S80 are built under fords reign, that in itself is enough to turn me off them.
I believe they also suffer from the etm curse.

Me, I'm happy with my 850.
Cable operated throttle end of story.
Had two cars with electronic throttle (not volvos) both had unsolvable problems. (thanks ford, idiots)

RE: Value of used Volvo (low residual value). Why?
 

Thanks guys for replying. I guess I will take a good mechanic to look over the car when I am ready to buy one. I guess I would also want to find the more common 5-cyl version and not the T6 twin turbo one.

I guess my biggest problem is that I either have to pick Volvo, Saab or VW. Those are my only choices and Volvo came up at the top.

Thanks.

RE: Value of used Volvo (low residual value). Why?
 

Look around for a good Volvo. They are out there.

RE: Value of used Volvo (low residual value). Why?
 

Ford may have bought Volvo, but I dont see them putting ford parts in it, the parts are still the same quality as before, so I think that Ford doesnt have much to do with it?

they probably lose value because 90% of people complaining about there s80, atleast that I see are 99,00,01. the rest onwards you dont hear too much about. So its only going to be a prescident for the other years of the s80. When they see that: Oh, the 99-01s are buggy, the 02 03 04 etc are going to be buggy too.

I dunno lol but thats why I think they are losing value faster than they should. But it also might have to do with the higher gas prices..

RE: Value of used Volvo (low residual value). Why?
 

The a/c core in the 850 is a ford part. At least as far as I know it is.
It's more the after sales and parts availability that have suffered under fords destruction.

Did they make the S80 as a 5cyl ??
I know there was the 6 and turbo 6, but a 5 ?

RE: Value of used Volvo (low residual value). Why?
 

I'm coming to the end of a 3 yr lease on a XC90 (3 yr, 36K mi @ $3K down + $400/mo). Sticker was $42K.
Is the residual ($22K) based solely upon original sales price minus the total of my down/monthly payments? or are they basing the residual upon current market value, etc? Just wondering, cuz I feel my residual is a little low, and it might be worth it to me to just buy it at the end of the lease.

thanks