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Discussion Starter · #1 ·
Hello, first post here.

Have been shopping for a new car and have learned a lot about the values of these two automakers.

My wife and I bought our first new cars in 2012. We got a Volvo S60 for $30k, and a Subaru Forester for $24k. I used to sell cars and am confident I got a good price on both cars. We put $8k down on the S60 and $5k down on the Subaru. Got similar financing with 50m terms (1% loan with Subaru, 2% with Volvo).

Now that we are shopping we have looked at trading either car in. According to KBB, and the couple dealerships we have talked to, we have about $10k equity in the Forester, and -$1000 on the S60. Both cars are in great shape, the Subaru has 3k less miles. We have been paying about $350 a month for the Forester, and $450 for the S60.

Felt like I got punched in the jaw a bit with the Volvo. We've spent a lot more money on it with the bigger down payment and an extra $100 a month, and it's basically worth to us $11k less. I know you take a hit going luxury, but wow.

I love our S60, and I learned a great lesson about Volvo's value. Their value is in buying them used! And the opposite is true for Subaru, at least in Washington. So that is what we are looking at buying. Have a baby now and my wife wants an XC60. Finding some great deals on 2011-2013 around 40k miles for under $25,000.

Anything to worry about with higher mileage Volvo's? Timing belt around 120k I see. Engine seals? Transmission? We're looking at getting a 3.2, not the turbo T6.
 

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Since you've already paid for the depreciation, Id say just keep the s60. Nothing quite like a car you bought new.


But If you insist, I'd get a t6, standard awd, more power, similar mpg(basically just the 3.2 with a mpg hit for awd).
 

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If money (and especially financial risk) is an issue but you still want to go Volvo, CPO cars are the only way to go. That gets you over the initial depreciation hump on a new-ish (usually off-lease) car plus a warranty out to 7 years/100k mi. As much as I like Volvo, I'll never tell anyone to expect one to be trouble-free. (I have yet to own one to 100k without paying for something expensive...usually a couple of somethings.) If you really want a new car then I'd honestly steer you toward the Subaru. I'm aware of very few issues with the new generation Outback/Legacy (just "fragile windshield syndrome") and the only known issue I'm aware of with recent Foresters has been oil burning, which I understood to have been traced to a manufacturing issue with ring packs. Granted you may still have to pay for an expensive repair on a Subaru but I think the odds are better. The only down-side here IMO is sluggish performance from the N/A 4-banger and a less cushy interior unless you go for a higher-trimmed Legacy/Outback. Whether or not that matters is entirely up to personal preference.

Of course, option #3 is to keep the two perfectly good cars that you already have. Maintenance and repairs are almost guaranteed to be less expensive even as they age than starting all over with a new car and a new loan. That's the advice I'd give to a friend.
 

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Discussion Starter · #4 ·
Thanks Guys. I agree, I think Subaru's are more dependable. My wife wants a bigger car and is convinced Volvo's are the safest. Hard to argue with that. I told her let's trade, My car for her car. The Forester is about the same size and I think it's safe. She didn't seem to like the offer last time we talked.

I have been reading on here about the T6 and the 3.2L motors having issues with cylinders leaking oil. Looks like a lot of people have had their engines replaced. That sounds scary and expensive...
http://forums.swedespeed.com/showthread.php?172232-2011-XC60-burning-oil-problem

Maybe time to talk again to the wife about trading. I love driving her S60, T5 2WD. Apparently the T5 engines have not had the oil issue, and we're under warranty. I agree the best economic decision would be to keep both cars. We have 2 cars under warranty with low miles that run great. Thanks for the advice, I think I will try and keep what we have for now.
 
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