Volvo Financing Deals

Volvo’s very first car had a grand debut in 1927; however, it had been assembled backward and would only go backward. Despite starting off in the wrong direction, Volvo rolled ahead and grew to become an industry leader. The Swedish carmaker decided to get in the business because it thought no one else would make a vehicle that could handle Sweden’s roads. They aptly named company after the Latin verb meaning “I roll.”

If you’re thinking of purchasing or leasing a Volvo, you might be wondering what it offers in the way of financing. Like many manufacturer financing companies, Volvo offers 0% APR financing and other incentives, such as cash allowances on its vehicles. Some offers require customers to finance with Volvo, which usually means you should have top-notch credit.

If you want to roll in a Volvo, this article will tell you how you might be able to finance it.

Financing directly through Volvo

  • Financing terms up to 75 months
  • 0% APR financing available
  • Apply at a dealership in person or online at a Volvo dealership’s website

To apply for Volvo financing directly, you can either go to a Volvo dealership or a Volvo dealership’s website. In both cases, you’ll need to provide information such as personal, housing, employment and financial data, such as your monthly income.

If you shop around and pick out the Volvo you want from the corporate website, you’ll need to contact a Volvo dealer or have them contact you by filling out a form after you personalized your car. If you want to skip the personalization process, you could use the dealer finder on the corporate site to find a local dealer’s website and location so you could go there in person.

Volvo Car Financial Services does not take only your credit score into account when determining whether to offer an auto loan and what terms to offer. Your credit score is a factor, but Volvo as a lender also considers all of the following when determining your financing eligibility: down payment, credit history, purchase price and trade-in value.

Volvo rebates and incentives

If you time it right, you may be able to save a few thousand dollars, which may come in handy as “the Volvo Way” involves no price negotiation.

Volvo offers a series of programs and rebates, which they call allowances, on new vehicles. Which programs and allowances are available on which exact vehicle may change depending on the time of year.

For example, as of this writing, qualified buyers could get up to $3,000 in allowances and bonuses on a 2018 Volvo XC90.  The key word is, of course, qualified. Volve doesn’t give much info on what makes a borrower pass the bar, but typically, automaker financing companies require customers to have top-notch credit.

The good news is that if you can jump through the different qualification hoops, you may be able to take advantage of one of Volvo’s multiple discounts and allowances, which we cover below. This may not be an exhaustive list. Be sure to check with a Volvo dealer or on the Volvo website for more information.

  • Cash allowances. Known as Purchase Bonus, Volvo Allowance, Lease Bonus and  Dealer Allowance, these discounts apply to specific vehicle models and, depending on the vehicle, there may be multiple allowances on the same vehicle.
  • Loyalty bonus. If you own or lease a Volvo and are interested in a new Volvo, you may be eligible for a $1,000 Loyalty Bonus. It cannot be combined with the Competitor Bonus or Overseas Delivery program sales (see international programs below) but may be combined with appropriate Cash Allowances.
  • Competitor bonus. If you own or lease a competitor’s vehicle, you might qualify for this allowance. It cannot be combined with the Loyalty Bonus.
  • Graduate programs. If you are a recent college graduate and are approved with Volvo Car Financial Services, there are competitive financial offers available.
  • Low finance rates. For qualified buyers, Volvo offers low APR financing for limited terms.

International programs

For these programs, if you qualify, you may be able to get a worldwide warranty, international delivery and tailor-made specifications depending on your country.

  • Diplomat sales.If you work for an embassy or international organization such as NATO, the World Bank or UNESCO, you might be eligible for a price discount.
  • Expat program. If you are working abroad in a country in which you are not a citizen, you may qualify for a price discount equal to that of the diplomat sales price
  • Military bonus. You can either use this allowance as a discount on the car price or use it to buy a certain trim level. Eligible participants include DOD civilian employees and contractors who hold a valid U.S. Military ID card and are assigned outside of the U.S. and its territories on official orders
  • International student program. If you’re studying abroad as a foreign student in the U.S., you might be able to lease a new Volvo for the duration of your study abroad program by giving a one-time payment. Having U.S. credit history is not required.

Note that some incentives are only available for qualified customers based on FICO scores through Volvo Car Financial Services. For exact information, check with a Volvo dealer.

Certified Pre-Owned (CPO) Program. A Volvo CPO vehicle is different from a regular used vehicle in that it is certified by the manufacturer, meets quality standards for age, mileage and condition, has a clean vehicle history report and passed a rigorous inspection. You can only get a CPO Volvo from a Volvo dealership. The car will come with the latest software upgrades and either a 7-year or a 6-year/100,000-mile warranty with a $0 deductible and 24/7 roadside assistance.

Volvo may offer a loyalty bonus, 0% APR financing and special service programs for CPO vehicles as well.

Leasing from Volvo

  • Lease for 24 to 48 months
  • Mileage caps range from 7,500 to 30,000 miles annually
  • $0.25/mile charge if you exceed your mileage cap

Leasing may allow you to get into a nicer car than you could afford to purchase because when you lease, you’re not buying the whole car; you’re just buying the amount of time for which you’ll be leasing the car. It is also a cheaper option to lease rather than buy if you get a new car every few years.

Depending on the type of lease you select, the limits of the amount of mileage and wear and tear you can put on the vehicle is limited. If you go over, you can be charged. The charge rate for mileage overage is $0.25 per mile, though you could buy an excess use and wear protection plan. If you don’t know whether you want to lease in general, you can check out this guide on leasing versus buying.

Volvo offers three types of leases:

  • Single payment lease. This is one single payment covering the entire price of the lease. You don’t make monthly payments, and pay less overall than you would over the terms of a traditional lease.
  • Business lease. You don’t have to be a regular consumer to lease a Volvo. Business may be able to lease Volvos as commercial vehicles for employee use.
  • Multiple security deposit lease. This allows you to make a refundable security deposit, reducing the monthly payment.

At the end of the lease, you could return the car, buy the car, trade it in for another Volvo or ask for a lease term extension.

Subscription program. The Care by Volvo Program allows customers to pay a monthly fee to use a Volvo of their choice. It is similar to leasing in that the customer does not own the car but pays to use the car. The difference is the customer may change vehicles during the time period and is not responsible for auto insurance or paying for regular maintenance. Subscription customers may also have access to the newest models before lease and purchase customers.

There is a mileage limit of 15,000 miles a year and you must sign up for a period of 24 months. No price negotiation or down payment is required. At the time of writing, there are two subscription programs available, one for $775 a month for the S60 T6 AWD Momentum and one for $850 a month for the S60 T6 AWD R-Design.

International student program. This is a single-payment lease for foreign students in the U.S. that does not require you to have U.S. credit history.

Alternatives to Volvo financing

We highly recommend that you get a preapproved auto loan before you go into the dealership. Car dealerships may be able to make money by increasing your APR up to two percentage points more than what the lender charges. By applying for an auto loan directly from a lender, without a dealership as the middleman, you’ll better know what you qualify for.

It does not hurt your credit to apply to multiple places within a 14-day window any more than it does to apply to one place. Many lenders advertise that their loan applications are very quick, only taking 60 seconds to fill out, so there’s not a lot to lose and possibly a lot to gain from shopping around for the best rate. For more information, here are some more benefits of getting preapproved.  

Places to shop around for an auto loan include banks, credit unions and online lenders. You could go to LendingTree to see up to five potential loan offers from lenders.

More about Volvo

As an industry innovator, Volvo’s inventions include side air bags, rear-facing child safety seats (based on space technology to help astronauts survive the rocket trip) and the Lambda Sond,  an oxygen sensor that reduces vehicle exhaust emissions that harm the environment by 90% and a version of which is on almost every gasoline-powered car in the world.

One of its most important inventions was the modern seatbelt. It even released the design for free, waiving its patent rights in order to save lives.  

Today, Volvo makes everything from passenger cars to military defense vehicles, large commercial trucks and fighter plane jet engines. The original company no longer owns its own auto manufacturing division; Geely, a Chinese company, bought it in 2010 from Ford, which bought it in 1999.

The company still prides itself on being Swedish with the connotation of safety, reliability and design.

So many people keep their Volvos for so long, there’s an international Volvo club with membership based on your Volvo’s mileage. The minimum mileage required to join is 150,000, and gold membership starts at 500,000 miles.

As a company, Volvo continues to grow. It sold over a 147,000 vehicles in the first three months of 2018 (growing 14% from 2017) and opened a U.S. factory in Charleston in June 2018.

Yet Volvo doesn’t plan to stop looking for innovation opportunities. Besides committing to electric vehicles, Volvo sees the future of vehicle use and ownership being very different from today. In July 2018 it launched “M,” a new Volvo brand that is technically still in beta testing.

“M” is an alternative to a taxi, public transport, and short-term car rental such as ZipCar, which allow users to rent a car by the hour for a grocery store run or similar trip. The idea is to allow users to pay for a car only when they use a car. One could compare this to the business model of RedBox you don’t have to buy the movie, just pay for the time you have it. Whether Volvo is right and this is the future of the auto industry, we’ll have to see.

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