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Volvo Car Financing Review 2021: Buy, Lease or Subscribe

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Volvo Car Financial Services At a Glance
Best for: Those who want to buy or lease a new or certified pre-owned Volvo

lenderAPRLoan termsTermCredit requirementsCTA
Starting APR
0.00% APR
Loan Terms
Up to 75 months
Lease Terms
24 to 48 months
7,500 to 30,000 miles annually
Get Free Quotes

If you’re looking for Volvo financing, Volvo Car Financial Services is the automaker’s lending arm, offering loans and leases on new and certified pre-owned Volvos. Zero-percent financing deals are possible but typically require great credit. Volvo Car Financial Services isn’t the only way to buy a Volvo — we’ll compare its offerings to those available from competitors.

Pros and cons of Volvo Car Financial Services

Volvo Car Financial Services offers loans and leases on its own vehicles at franchised dealerships. But not just not any car — only new and certified pre-owned (CPO) Volvos, no other type of used car. Volvo financing rates aren’t publicly disclosed, so it’s important to get your own auto loan offers before heading to the dealership.


 Low rates: 0% APRs or near-zero deals are available. If you pay your car loan on time and in full, you’ll pay little to nothing in interest fees.

 Robust leasing options: Volvo offers longer terms and mileage options than the industry standard.

 Subscription plan: If you don’t want to buy OR lease, there’s a third option: subscribing month by month. However, there are vehicle and location restrictions.


 Limits: A Volvo auto loan is only good at a Volvo dealership and cannot be used to buy a non-certified used vehicle.

 No preapprovals: You might be able to apply for credit online through your local dealer’s website, but in many cases, you’ll need to apply at the dealership in person where you’ll get your APR, loan amount and term offer. Get your own preapproved auto loan to compare with the offer at the dealership. Unlike Volvo car finance loans, a preapproved auto loan is portable if you decide to purchase from another automaker.

 Unpopular: Volvo failed to crack the list of lenders on the 2020 J.D. Power U.S. Consumer Financing Satisfaction Study. At the same time, it received about a dozen complaints on the Consumer Financial Protection Bureau’s complaint database.

Volvo purchases: how it works

As we mentioned earlier, Volvo Car Financial Services finances its own new and certified pre-owned vehicles. You might pay more for a CPO vehicle, but you’ll get a used car that meets automaker quality requirements. At Volvo, it also comes with:

  • A five-year, unlimited-mile warranty
  • Roadside assistance

CPO vehicles, unlike other used cars, are also eligible for incentives like cashback offers. We’ll talk more about Volvo financing deals in a minute.

Volvo leasing: how it works

Leasing allows you to have a new or nearly new car for a certain period of time and miles. Volvo has a generous menus of options including:

  • 24- to 48-month terms
  • 7,500, 15,000 or 30,000 miles per year

In general, the higher the mileage limit, the more expensive the monthly payment, but choosing a lower limit risks racking up excess mileage fees by lease end. Volvo charges $0.25 for every mile over the limit. This is in addition to a $350 disposition or turn-in fee and charges for excessive wear and tear. Volvo may waive those fees if you lease or buy your next car with them.

Besides the traditional lease, Volvo also offers other types of vehicle leases including a:

  • Single payment lease: Rather than make monthly payments, you could make one big payment that covers the entire lease period. You’ll pay less overall versus a conventional lease.
  • Multiple security deposit lease: Rather than a single lump sum for the entire cost, you could instead make several deposits at the beginning of your lease. Like the single payment lease, it might reduce your costs and/or help you get approved.
  • Business lease: Businesses may be able to lease from Volvo for commercial use.

When your lease is over, you have three options:

  1. Turn in the vehicle.
  2. Lease or purchase another vehicle.
  3. Purchase your leased vehicle with a car lease buyout.

Volvo finance deals

Luxury brands tend to offer fewer discount programs than many mass market automakers, but Volvo does offer cash allowances on purchases and leases plus a few nice benefits for members of the military.

  • Cash allowances: To encourage vehicle sales, Volvo offers cash allowances up to $2,500 on specific models.This may include the Loyalty Bonus, which we’ll talk about next.
  • Loyalty Bonus: To encourage customers to purchase or lease from Volvo again, it offers up to $1,000 in price reductions. Returning customers may be eligible for a one-point drop in their lease or finance rate.
  • College graduate program: Recent college graduates may be eligible for competitive rates and a 5% down payment.
  • Military Offer: Active-duty members of the U.S. military or those who have left service within the past three years and their spouses may be eligible for a $1,000 purchase or a $500 lease discount. This includes members of the National Guard and Reserve. U.S. military members stationed in Europe may receive their own benefits: no import duty, three years or 30,000 miles of complimentary maintenance, three years of roadside assistance and four years or 50,000 miles of warranty coverage worldwide.

Here are some additional programs Volvo offers for those involved in international work:

  • Volvo diplomat program: Price discounts if you work for an embassy, consulate or international organization such as NATO, the United Nations and the World Bank.
  • Volvo expatriate program: Financing or leasing assistance for professionals from outside the U.S. who are in the country for work.
  • International student program: Foreign students studying in the U.S. can qualify for leasing assistance. U.S. credit history is not required.

Volvo subscription program

Care by Volvo gives you a car, plus insurance coverage and free maintenance for a monthly fee. Costs vary by model, but may start around $600 a month. That’s more expensive than its lease specials, which could be as low as $335, but you’d have to pay for your own insurance and other costs. Terms run for 24 months, but you could cancel after four months.

A subscription program could be a good fit for someone who needs a car temporarily or wants to try out a Volvo. Keep in mind that vehicles are limited to the XC40, XC60, XC90 and S60. The program is not available in California, Hawaii, Mississippi, North Carolina, North Dakota, New York or South Dakota.

How to qualify for Volvo financing

A Volvo auto loan or lease could be a good fit for shoppers looking for a new or CPO Volvo, but the most lucrative deals and incentives will likely go to those with the strongest credit.

Applying to Volvo Car Financial Services

When applying, you’ll need to provide:

  • Personal information: Name, date of birth, Social Security number
  • Employment information: Employer name, gross annual income
  • Contact information: Residential address, email address and phone number

Alternatives to Volvo financing

Here’s how Volvo Car Financial Services stacks up against a credit union, an online lender and a national bank.

Volvo financing vs. competitors
Volvo Navy Federal Credit Union LightStream Bank of America
Starting APR* 0.00% 1.79% 3.49% 3.39%
Terms Up to 75 months Up to 96 months 24 – 84 months 12 – 60 months

*May include autopay discount

Navy Federal Credit Union

Navy Federal offers one of the lowest available starting APRs on new-car auto loans and works with all credit types. But you’ll need to be a member to qualify — membership is open to those with ties to the U.S. military.


An online lender, LightStream offers all types of car loans at competitive rates. If you have good credit or better (FICO 660+), it may be worth applying for a LightStream auto loan.

Bank of America

A well-known lender and established financial institution, Bank of America offers a variety of autos loans at competitive rates. If you prefer banks for the convenience they offer — banking and lending in one place — this may be a good fit.


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