EV resale values: One thing Volvo drivers don’t have to worry about

Questions about the resale value of electric cars are not unique to Australia. The UK last year saw used EV sale prices drop for a number of reasons – oversupply, the end of car leases with generous tax allowances that started in 2020 and aggressive discounting in the new car market across the board.

Those declines have since stabilised – but it’s worth pointing out that resale values can be distorted by generally higher up front prices for electric vehicles than their petrol or diesel engine equivalents. That premium is justified by the latest technology and much lower running costs, as well as tailpipe emission reductions.

Either way, incoming government legislation in Australia may ultimately level-up prices between new EVs and combustion engine cars with higher emissions. From January next year under the New Vehicle Efficiency Standard, manufacturers have to meet or beat emissions limits across their range. If they don’t they face penalties. The upshot is that more polluting cars will likely cost more if carmakers can’t balance out their emissions across their portfolio – which means better balanced like-for-like resale value comparisons.

Predicting exactly how market dynamics will play out is hard – and for those concerned about the resale value of their EV – or hybrid model – Volvo Cars Australia can provide certainty.

Volvo Car Future Value^ with Volvo Car Financial Services± provides a guaranteed minimum future value (known as GFV) available for all Volvo models including fully electric vehicles. Customers that purchase with this product have the following options at the end of their loan term: Trade - Using the minimum GFV, upgrade to a new Volvo model of your choice. If the trade in valuation from your preferred Volvo Retailer is more than the GFV amount you can use that equity towards your new car. Retain – If you wish to keep your vehicle let us know, and you will need to simply payout or refinance the GFV amount. Return - Provided the vehicle meets the fair wear and tear guidelines, and the agreed kilometre allowance, you can return the vehicle with no more to pay. The fair wear and tear guidelines allow for small dings, light scratches and stone chips, provided they haven’t penetrated the paintwork, see the guide here. Kilometre limits apply and are set by you at the start of the loan. ^Volvo Future Value means electric vehicle drivers don’t have to worry about resale value because they already know what it is going to be. Given the pipeline of new Volvo Cars technology, features and innovation coming thick and fast to Australia this year, next and beyond, our GFV finance option provides the flexibility to upgrade to the latest Volvo models more often with contract terms of 12, 24, 36, 48, and 60 months, and kilometre limits set to suit your needs. Find out more here – and estimate finance repayments via the Volvo pricing calculator here. *^Volvo Car Future Value has a Guaranteed Future Value (GFV) which is the minimum value of your vehicle at the end of your finance contract as determined by Volvo Car Financial Services (VCFS). If you decide to return your vehicle to VCFS at the end of your term, VCFS will pay you the agreed GFV, which will be put against your final payment subject to fair wear and tear conditions and agreed kilometres being met. At the end of your term, you can elect to (1) trade-in; (2) return; or (3) retain the vehicle by paying the GFV owed to VCFS at the end of the loan term after all repayments have been made. You will be liable for any loan contract deficit and additional charges apply if you exceed the nominated kilometre allowance and/or the vehicle is not in an acceptable condition. Available on new, demonstrator or Volvo Selekt pre-owned vehicles. To see if this product is right for you, please see our Target Market Determination on our website and/or seek independent advice. Subject to a credit assessment and VCFS lending criteria. Fleet, government, rental buyers, hire car and chauffeur companies excluded. Vehicle finance and Volvo Car Future Value is provided by Volkswagen Financial Services Australia Pty Limited (trading as Volvo Car Financial Services) ABN 20 097 071 460, Australian Credit Licence 389 344. Volvo Car Financial Services is a registered business name of Volkswagen Financial Services Australia Pty Limited under license from Volvo Car Corporation. All applications are subject to credit assessment criteria. Terms, fees and charges are applicable. Full conditions available on application. View the Target Market Determination for the Financial Services products here.*