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Discussion Starter · #1 ·
Considering a new XC90 for our family.

Trying to decide whether to buy a new T6 Momentum now (as spec'd, about 56k).

Or we could wait until next Fall and try to find a low mileage, used 2016.

Im sure we would be able to find a used XC at that point, being that they'll have been out for 18 months. The question is, what kind of savings vs new will we likely see??? If we're only looking at 5k in savings, I'd rather buy new.

If we could realistically save 10k on a low mileage example, I would consider waiting a year and going the Used route.

The only reason I ask this is because the new pricing is so firm due to high demand and low supply on this model.

Thanks!!
 

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Right now, I have seen a couple cars that have 3k to 5k miles. MSRPs in the low $60K, are being sold (as pre-owned) in the very high $50Ks.
 

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Uh, here's another idea -

Wait about a year and get a new 2017.

If you have the flexibility, then resist the temptation to be (almost-) "First!"
 

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Honest question. What types of vehicles come on the used market after 12 months?

My assumption has always been:
a) demo vehicles
b) cars owned by enthusiasts who get the latest and greatest every year
c) cars that have been particularly problematic to their first owners

For a & b, again my assumption is that they've likely been driven petty hard in the first months / 10K miles of ownership. For c, you're buying someone else's problem.

Personally, I've always been scared of buying used cars that are only 12-18 months old. I've felt the sweet spot is in the ~3-4 year range, when there's just more volume of cars on the market as it corresponds to the broader population's lease return / car upgrade timetable.

Happy to hear other views, as everything I've stated above is assumption and opinion. Definitely not fact that I can back up in any way.
 

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Honest question. What types of vehicles come on the used market after 12 months?

My assumption has always been:
a) demo vehicles
b) cars owned by enthusiasts who get the latest and greatest every year
c) cars that have been particularly problematic to their first owners

For a & b, again my assumption is that they've likely been driven petty hard in the first months / 10K miles of ownership. For c, you're buying someone else's problem.

Personally, I've always been scared of buying used cars that are only 12-18 months old. I've felt the sweet spot is in the ~3-4 year range, when there's just more volume of cars on the market as it corresponds to the broader population's lease return / car upgrade timetable.

Happy to hear other views, as everything I've stated above is assumption and opinion. Definitely not fact that I can back up in any way.
d) Cars driven by people with a lot of deposable income who change their minds frequently or always want the latest thing. Unlike your enthusiasts category, these may not have been driven hard at all. I have a friend who just bought a 1-year-old Porsche 911 from a dealer. The original owner only put 3,000 miles on it. He lived in NYC so it wasn't even regularly used. My friend bought it for $60K less than the previous oner had 1 year and 3,000 miles before.
 

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d) Cars driven by people with a lot of deposable income who change their minds frequently or always want the latest thing. Unlike your enthusiasts category, these may not have been driven hard at all. I have a friend who just bought a 1-year-old Porsche 911 from a dealer. The original owner only put 3,000 miles on it. He lived in NYC so it wasn't even regularly used. My friend bought it for $60K less than the previous oner had 1 year and 3,000 miles before.
In other industries, they call these people 'angel' investors. I need to find some of these people to follow around with my checkbook. Would love to take their seconds any time!
 

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Best chance is to get hold of a demo car, and get CPO warranty on it. May be able to save $5k now.

Sent from my SD4930UR using Tapatalk
 

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Presumably these were fully equipped Inscriptions or if not what level trim and features?
Yes, both were well equipped Inscriptions (actually, one was a FE).
 

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Considering a new XC90 for our family.

The question is, what kind of savings vs new will we likely see??? If we're only looking at 5k in savings, I'd rather buy new.

If we could realistically save 10k on a low mileage example, I would consider waiting a year and going the Used route.

Thanks!!
A year from now, when supply and demand have likely normalized, it wouldn't be surprising if you could get around $5k off on a brand new 2017 XC90. That said, plus the fact that Volvos and luxury cars in general tend to depreciate fairly quickly, it would be reasonable to think you could get $10k or more off MSRP on a used XC90 a year from now.

Buying used will almost always cheaper, but it just comes down to if you can fight the urge and be patient (that's the battle I'm facing now).
 

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A year from now, when supply and demand have likely normalized, it wouldn't be surprising if you could get around $5k off on a brand new 2017 XC90.
I hope so! A family member just bought a brand new 2016 Mercedes C300 ($58,000 MSRP) and got almost 8% off. I asked about the brand new 2016 Mercedes GLC price and because it's brand new MY (not out yet) there's no discount at all on it if you want to order. So would make sense you'll get a much better discount in 2nd production year.
 

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The question is, what kind of savings vs new will we likely see??? If we're only looking at 5k in savings, I'd rather buy new.
the easiest way to tell what an xc90 will cost would be to look at the way the lease is structured. whether you're buying or leasing or financing you can get a general idea of how much depreciation is to be expected over three years but it is a very big gamble on a new model/design. judging by lease residuals volvo is playing it safe with the depreciation and possibly over-estimating however you asked for one year old... an educated guess would say a 20% savings could be had if you buy a slightly used xc90 but now your 20-25% "savings" translates into the inability to get the exact vehicle you want or be patient enough to wait for the exact "used" vehicle to become available.
 

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After negotiations, I don't think it'd be worth it to buy a used XC90 over waiting until the 2017 models are out and the 2016 models are discounted. Furthermore, the best years of a car's life are the first years, which is why I buy new. I bet you could get a decently optioned Inscription for high 50s and it'd be worth having 0 miles on it compared to buying a used one for mid to low 50s.

I bought used in the past, but after buying new back in 2010, I will never buy another used car unless it's a weekend toy, but definitely not my daily driver.
 

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I hope so! A family member just bought a brand new 2016 Mercedes C300 ($58,000 MSRP) and got almost 8% off. I asked about the brand new 2016 Mercedes GLC price and because it's brand new MY (not out yet) there's no discount at all on it if you want to order. So would make sense you'll get a much better discount in 2nd production year.
I got almost 17% off a new 2015 C300 4 months after the re-designed model came out, so you can't really compare discounts across makes / models. But there were no discounts for the first month or so. The C-Class is a volume car though so they quickly balanced out supply and demand, much more so than the XC90.

(The GLC does look amazing, BTW)
 

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Discussion Starter · #19 ·
Sorry, my sig is outdated, we no longer have our 08 XC90.

I agree that there's only a few reasons that vehicles pop up for sale after a few years.

a) demo vehicles (this would be fine)
b) cars owned by enthusiasts who get the latest and greatest every year (this would be fine)
c) cars that have been particularly problematic to their first owners (I've been the one who unloaded a couple of problematic vehicles after the first year, and I definitely don't want to buy anything that falls into this category......therefore, anything used will have service history looked up by my local dealer, and if it's a vehicle that's been in a bunch of times for warranty work, would probably be avoided:)

I think we're going to wait a year and pick up either a "leftover" 2016 model next fall, or a 2017, once the "newness" of the re-designed XC90 has worn off, the prices will soften up quite a bit, I'm sure. Used, these typically drop in value quickly, which is why the leases are 700+ a month, even on base models..........because the leasing company is covering a pile of depreciation in the first few years.

Thanks all for your comments!!
 

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Jettix2, first you need to see what it is you are after. The least cost of ownership will always come with used car. However, it will never feel special as you will settle for someone else's options, you will always wonder why they sold it, how they treated it; you will hear rattles in the engine and think it was driven too hard; you will see some issues with electronics and think it was made on Friday afternoon. If you are after a car that feels special, new xc90 definitely has a potential as it does feel special to many people (myself included). You do need to order it with options you want and accept depreciation as a cost of ownership - it will lose 60% of value over next 4 years. It may follow different curves but your monthly will be high no matter how you twist it. Think about it like this - from new it depreciates 1k a month, it was your no compromise choice and puts a smile on your face each time you drive it; from used you reduced your depreciation to 750 a month but it's just a car someone had and now you have. Personally I would say it's a waste of 750 a month. You are clearly conflicted - buy it new.
 
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