Like other luxury brands, Volvo does not have a good resale value. In fact, it’s worse than many other luxury brands when it comes to reselling your car.
Luxury cars do not hold their value very well, but Volvo has one of the worst resale values among luxury car brands. The reason behind this depreciation is that the reselling market has more demand for cars like BMW or Audi because of their high-speed performance capabilities. The maintenance of old Volvos is also pretty expensive, which makes them even harder to sell.
Luxury car resale value
It is common knowledge that luxury cars lose their value in just 5 years. You can literally buy a luxury Maserati or a premium BMW, for just half of the price just after 5 years. The same is the case with other luxury brands like Audi and Volvo.
This depreciation of luxury vehicles is not that high in its initial years, but it is a lot after 5 years. Buyers have to deal with the depreciation even after paying a huge amount for the luxury vehicles. However, luxury vehicles have many features which make up for their high depreciation rates.
Reasons for bad luxury car resale value
Luxury vehicles depreciate hugely after just 5 years, even though the build quality and features of these vehicles are better than those in mass-produced vehicles like Toyotas or Hondas. This high depreciation is caused by:
- High maintenance rates – as much as you love these luxury vehicles, the bitter truth about them is that you will have to pay really high maintenance bills. The parts and repairs will cost you a lot more than other budget cars.
- People don’t like used cars – when luxury vehicles get old, people just don’t buy them because of their age and mileage.
Volvo’s resale values
Volvo used to be an extremely reliable car brand, but that has drastically changed over the years. They used to be boxy and just like other family cars, but now, they are among top-end luxury vehicles. They have new technology and expensive parts which cost way more than other cars.
Volvo started making high-end luxury vehicles with the newest technology, but the more technology that is used in a car lead, the more prone to malfunctioning it is. However, there are still advantages there for Volvo owners, like the best safety features and other reliability factors.
Reason of depreciation
The depreciation in Volvos is not a new thing. Volvo is a Swedish brand that focuses on the newest technologies to provide the best comfort. However, there are reasons for depreciation, including:
- Extremely high maintenance rates – Volvo requires high maintenance directly from Volvo dealerships, which is very expensive.
- Expensive parts – As a European brand, the parts are always expensive to buy and hard to get.
- People’s choice – Most people prefer other high-speed luxury cars if buying a used car, like a BMW or Audi.
- Less demand – Volvo generally produces a smaller number of cars; therefore, they have a small market to sell and an even smaller one when it comes to resale.
Common problems with Volvos
Many people have reported certain issues that are prevalent in Volvos. Volvo has usually done a good job in handling these issues, but they are still present in older models. Fortunately, Volvo has improved their problems per 100 score from 204 to 185 in 2019.
Some common issues Volvos face are:
- Transmission system problems
- Auto braking system problems
- Power steering fluid leakages
- Tires get worn down way too early
- Cooling system failure
Depreciation rate of Volvo cars
The resale value of Volvo cars is very bad due to the reasons stated above. Volvo stands at 11 out of 13 car brands in the best resale value for luxury cars list. Volvo is just above Jaguar and Land Rover, which are known for their low resale values and extremely unreliable cars.
This is certainly not good for Volvo as Volvos used to be the most reliable car maker back in the day. Volvos hold just about 45% of their value after 5 years, which pretty terrible. This certainly tells that they need to improve their reliability scores and lower their maintenance costs.
Other competitors’ resale values
Volvo is a luxury brand that has many competitors. The competitors include many Japanese, European and American carmakers that produce high-quality luxury vehicles. The resale value is measured through the value of cars after 5 years of their existence.
Lexus tops the list for the best resale value. It is also the most reliable carmaker in the world right now. The Lexus holds 56.55% of its original value after 5 years. This is still not that good if we compare it with other mass-produced car companies like Subaru or Toyota, but it tops the list for luxury carmakers.
The second on the list is Tesla with 53.52% of its original value after 5 years. The popularity of Tesla is harder to explain as it has even worse reliability scores than Volvo, but it still has better resale value due to people’s demand and personal tastes.
Here’s the resale value of luxury car competitors after 5 years:
- Lexus: 56.55%
- Tesla: 53.52%
- Cadillac: 51.26%
- Audi: 50.67
- Porsche: 50.53%
- Lincoln: 50.26%
- BMW: 47.26%
Volvo: Safe, but low resale values
Volvo cars certainly give luxury and comfort with high performance, but they are not good in terms of resale value. The reasons are high maintenance and low demand, which is also the case with other luxury vehicles. If someone wants the best safety features of Volvo, then they would have to endure its low resale values when they want to sell it.
What car companies have the best resale value?
The resale value is very important if you’re buying a car. Usually, most cars lose a lot of their value after the first five years. However, there are some companies that hold their price better than others like:
- Subaru – holds 60.70% of its value
- Toyota – holds 60.03% of its value
- Dodge – holds 59.51% of its value
- Honda – holds 59.22% of its value
- Mazda – holds 58.81% of its value
What luxury cars have the best resale value?
The resale value of luxury cars is usually lower than other budget car companies like Toyota or Subaru. The resale value of luxury cars depends on maintenance issues and parts availability. The list is as follows:
- Lexus – with the resale value of 56.55%
- Tesla – with the resale value of 53.52%
- Cadillac – with the resale value of 51.26%
- Audi – with the resale value of 50.67%
- Porsche – with the resale value of 50.53%
What are the most reliable car brands?
The reliability of cars depends on the quality of the parts, combined with maintenance costs and durability. It is extremely important before buying a car that the repairing is easy and not too complex like many luxury cars. These are the most reliable car brands: