Planning a new car? Time to consider your best options – and best deals

More Australians than ever are buying new cars. Four of the last five months have reset national sales records and 2023 may well be the biggest year ever. Thinking about a new car? Here are some key things – and savings – to consider.

**Engine, battery or both?**

Fuel prices hit an all time high last month, so choice of drivetrain – i.e. an engine, a hybrid, or a fully electric vehicle – increasingly influences car buyers’ decision-making.

**Mild hybrids**

All of Volvo Car Australia’s models use some form of battery and motor. Mild hybrids, or MHEVs in industry parlance, use a small motor and 48v battery alongside a petrol engine to smooth starts, deliver more powerful acceleration and reduce fuel consumption, especially driving around town. Which also means lower tailpipe emissions. The battery is recharged by braking, so it doesn’t need a plug.

Considering a mild hybrid? From now until the end of March, pay no stamp duty, no third party, and no registration across the MY23 Volvo mild hybrid range – XC40, XC60, XC90, S60 and V60 Cross Country^. Details here.

**Plug-in hybrids**

Plug-in hybrids, or PHEVs, combine a bigger motor and a bigger battery with the combustion engine. They can run in all-electric mode – which means everyday journeys, particularly at lower speeds around town, can be largely battery powered. For longer journeys, running both the battery and the engine in tandem means better performance and fuel efficiency, plus lower tailpipe emissions.

The fuel savings can be significant over combustion engines. For example, on a combined cycle, Volvo’s XC60 Recharge (T8 AWD) fuel consumption is 1.6 litres/100km. That’s less than a third of the fuel used by the XC60 B6 AWD variant at 8.0 litres/100km.*

**Battery electric vehicles**

Battery electric vehicles, or BEVs, are powered purely by batteries and electric motors. They have zero tailpipe emissions, because there is no engine burning fuel. No petrol costs means significantly lower running costs, especially if vehicles are largely charged at home at low kilowatt hour prices. Which is why Volvo Car Australia recommends people that purchase a BEV also install a wallbox charger.

There’s a jargon-free snapshot of Volvo Car Australia’s MHEVs, PHEVs and BEVs here.

Find out more about Volvo Car Australia’s pure electric range here and get the full picture on electric vehicle charging choices and cabling here.

**Buy or lease?**

Tax breaks can make leasing plug-in hybrids and fully electric vehicles a compelling option for company car drivers. Provided they cost less than $89,332, fringe benefits tax (FBT) does not apply. Which means EVs and plug-in hybrids tend to be far more cost-effective for businesses that offer employees company cars as part of their package.

Under salary sacrificing arrangements, both employers and employees can save thousands of dollars a year versus a petrol or diesel car. Over the course of a lease, the savings can run to tens of thousands of dollars – and that’s before fuel savings and longer service intervals are taken into account.

Find further detail on FBT here. For other electric vehicle incentives in Australia, state by state, this I-Roll article from July may be useful.

**Guaranteed future value**

Finance can be a good option both for domestic and business purchases – especially if the car’s future value is guaranteed when the time comes to trade in or buy outright.

Which is why Volvo Car Australia last year launched Volvo Car Future Value, or VCFV, which means customers know the minimum future value of their Volvo from the get-go.

The VCFV scheme means customers can upgrade their Volvo more often and benefit from the latest innovations and technologies. At the end of terms ranging from 12-60 months there are three options:

1. **Trade in**: customers can trade in their Volvo for a new one at the retailer. If the trade in value is higher than the Guaranteed Future Value, the equity can be used towards the new vehicle purchase.

2. **Retain**: customers can choose to keep their Volvo, all they have to do is let their retailer know. If they have met payment obligations, they can buy the vehicle outright for the Guaranteed Future Value amount or refinance it (subject to lending criteria).

3. **Return**: customers can return the vehicle at the end of the term if it meets the agreed kilometre and Fair Wear and Tear requirements.

Like all things in life, the Volvo Car Future Value scheme is subject to terms and conditions. Largely around mileage, fair wear and tear and the like.

**Options, packages, styling**

The fun part. Landed on a model? Make it your own: Colour, rims, seats, trim, sound system, entertainment options – even ambient lighting and sound options in some models. Build your next Volvo here.

**Pricing, delivery, wait times**

Wait times for new deliveries blew out for all manufacturers as a result of the pandemic as global supply chains took time to recover. But lead times are now coming down fast, in many cases weeks rather than months – and some models are available immediately.

For models in stock, dealers – or retailers as Volvo Car Australia calls them – are best placed to advise. Find your local retailer here.

For postcode-specific prices, see Volvo Car Australia’s drive away price calculator here.

*Figures according to ADR 81/02 are derived from laboratory testing, which is not carried out on every individual vehicle sold by Volvo. Factors including but not limited to driving style, road and traffic conditions, environmental influences, vehicle condition and accessories fitted, means in the real world the range you experience can differ from that advertised. Advertised figures are meant for comparison purposes.

^This offer is valid on MY23 Volvo mild-hybrid XC40, XC60, XC90, S60 and V60 Cross Country models. The offer includes registration, CTP insurance, and stamp duty only. Demonstrators and Recharge models excluded. This offer is not transferable or redeemable for cash. Offer is only valid on in-stock new models purchased and delivered between 1st January 2024 and 31st March 2024. Not available to fleet, government or rental buyers, or in conjunction with any other offer. Subject to stock availability. Volvo Car Australia reserves the right to change this offer at any time.