My opinion - if I needed to buy a car in the next twelve months I'd probably just lock in the price if it was acceptable and buy it now. If my horizon was out further than 12 months I'd probably just wait to see what happens. The almost daily volatility makes it difficult to make long term financial decisions so if I thought I might need a car in say two years, I wouldn't move that decision up because pretty much anything could happen.

 

this makes sense to me. it may be worth noting that Michigan and Ontario have been integrated - in terms of American automobile manufacturing - for over 100 years. Ford established manufacturing in Canada in 1904 - and Dodge even earlier than that. So, although the automobile tariffs were designed to further American manufacturing - American manufacturing has included Canada for literally generations.

Turning a blind eye to this simple fact means that domestic OEM's will be financially punished - even more than some foreign auto makers lol. iow. Canadian automobile tariffs don't seem sustainable in the long run (and by extension Mexico as well). However - whither Volvo?

To provide relief for Volvo, I suppose we need something new to be hammered out between the USA and Europe. Note - for automobiles. It is important not to confuse news about reciprocal tariffs with automobile tariffs - as they are two different policies entirely.

 

It makes more sense to buy now than it did when the world decided everyone needed a new car right away in 2022 and 2023. Inventory is low, but Volvo is still offering 4.99 and leasing is not too bad if that fits your life. Actually a lease might make more sense than usual. You can buy the deal today and decide if 2-3 years from now is better or worse when you get there. If car values go up then you should see equity, if the deals get far better, you can always take advantage of 6 month pull ahead that generally exists with Volvo.

I do suspect the deals are better now than when the 2026 models come out. There will not be leftover cars, as there have not been leftovers in the past few years, but if there is a big price bump on the 2026 models, every 2025 will become in demand. XC60 is the only one getting a real big change from the general public view, but even that is not enough to justify (for most) a big price hike if they can snag a 2025. And remember, it will also mean there are unlikely to be big rebates or discounts from either Volvo or the dealer. Volvo already cut 50% into dealer margins during the pandemic, and if dealers have fewer cars to sell, they'll need to make what they can on what they have.

Also... many folks have been when is the best time to buy since 2020... and their cars are getting old. Waiting for inventory, waiting for interest rates, waiting for tariffs, it's been a lot of waiting for a better time. In this, there have been fewer used cars as well if more people keep cars longer even if we sold a bunch of new cars, which puts a bigger strain on new inventory.

 

I do suspect the deals are better now than when the 2026 models come out. There will not be leftover cars, as there have not been leftovers in the past few years, but if there is a big price bump on the 2026 models, every 2025 will become in demand.

💯
Buying ASAP has been the best method for saving money in the last 5 years.

Realistically, even with the market being in a "flux" state, does anyone honestly believe vehicles (finance/lease/new/used) will become cheaper in the next year or so? If so, please let me have a hit of whatever you are currently smoking!

 

Appreciate the insight!

 

Volvo's management which is partly influenced by Geely have a pretty lean approach to things. So when the uncertainty came, Volvo changed its forecasts and reduced its production figures. So no upside to waiting as Volvo is ensuring itself of no glut.

But if the market doesn't falter and there isn't enough inventory - guess what? Incentives on new cars go down, so everyone actually pays more on new and used. Buying in uncertain times works in one's favour so long as they can absorb whatever risk there is.

 

It is very hard to predict what will happen. From the administration actions it seems like the 20% on foreign made cars is going to stick. There may be some increase, but Volvo can not increase prices by 20% otherwise many buyers will look elsewhere. Volvo dealers are flooded with inventory right now....prices aren't going up any time soon.

 

For anyone watching the car market and wondering when the best time to buy is - well there has been some expert analysis from a Detroit economic group on just this subject. Unfortunately it doesn't address Volvo directly - but reading the tea leaves it would seem apparent that most Volvo's will fit under the Medium and High Impact categories defined below. What does this mean? Expect your Volvo to cost Volvo USA $8,000 to $15,000 more before the end of the year*.

Anderson Economic Group estimated the tariff costs under the adjusted policy as follows:

1. Lower Impact Group–Reduced Tariff Costs: For certain vehicles assembled in the United States and with substantial U.S. content, we estimated tariff cost burdens of $2,000 to $3,000. The Honda Civic and Honda Odyssey, Chevy Malibu, Toyota Camry Hybrid, and Ford Explorer were in this group.
2. Medium Impact: Many vehicles will have an estimated tariff impact of between $4,000 and $8,000. Some Jeep and Ram truck models are in this category, as are the Chrysler Pacifica van, BMW X3, the Ford Bronco Sport, and the VW Jetta. With the adjusted policy, some Texas-assembled Chevrolet Suburban/GMC Yukon vehicles will have a tariff impact we estimate at just under $8000.
3. High Impact: Higher on the tariff impact list are full-size luxury SUVs, some BEVs, and products assembled in Europe and Asia. These vehicles are expected to see a tariff impact of $10,000 to $12,000, with some battery-electric vehicles and European and Asian luxury vehicles having an estimated tariff impact exceeding $15,000. Models in this group include Mercedes G-Wagon and other Mercedes sedans, Land Rover and Range Rover models, some BMW models, and the Ford Mach-e.

Tariff Costs for U.S.-Assembled Vehicles Drop Under “Adjusted” Policy

Least impacted vehicles still see tariff burden of $2,000+ Most impacted vehicles incur tariffs exceeding $12,000 East Lansing, Michigan-The automotive industry experts at Anderson Economic Group h…

www.andersoneconomicgroup.com

*if nothing changes. It's worth noting that the policy and implementation of tariffs has been in flux. But also worth noting that the automobile tariffs have more organization behind them than the so-called reciprocal tariffs (which seem more of a political ploy perhaps than an actual policy). For better or worse, the automobile tariffs are grounded in written policy.

My opinion - if I needed to buy a car in the next twelve months I'd probably just lock in the price if it was acceptable and buy it now. If my horizon was out further than 12 months I'd probably just wait to see what happens. The almost daily volatility makes it difficult to make long term financial decisions so if I thought I might need a car in say two years, I wouldn't move that decision up because pretty much anything could happen.

Finally went out of my 2010 S89T6 and into a 2023 S60 Plus (45K miles, the same amount as the S80 when I bought that in 2014. And (never done this before) added a 7 year/100K VIP extension... so I'm good until September 2029. Final mover was everything mentioned here. Took the VIP in part to guard agsinst tariff increase impact on possible repair parts. "Only" added $2300 to the $29K price. Look like a new car inside and out... and I'm already starting to like the Platinum Gray color.

 

Platinum Gray is a great color!

 

Platinum Grey is going away for MY26 except for the V90CC. I was a fan of the colour too, the funny thing is that I thought it suited the XC90 better but it sold better on the XC60.

 

All good input here. I'll add in what I've heard an experienced (currently in the process of buying a 25.5 XC90). As most agree, now is probably the best time to buy, prices aren't going down especially as the tariffs start. Even with excess inventory right now of 25s, those could be sold very quickly if automakers start increasing prices across the board. There's been speculation that Volvo will "reassess" prices for MY26, which in the US, I fully expect to result in price increases. We'll see, but I don't see how they can absorb a potential 25% cost increase and have it still be worthwhile to sell cars in the US, at least long term. I'm predicting it will be small increases for all vehicles on the lower end, say 5%, then larger increases 10%+ on everything at the top end... I'm glad I am taking delivery soon, but I'll certainly be watching the market going forward to see how this all plays out.

 

It will be tough to increase prices. They will have to absorb until they can move production to the US. I suspect there will be further concessions on the tariffs beyond whatever is in place now for vehicles that are manufactured in the US. The competition is largely made in the US (BMW X vehicles, Mercedes GLE/GLS and GLC production is starting in the US), so Volvo can't increase prices 25% and expect to sell very many cars.

 

It will be fascinating to see what happens, if anything at all.

So many potential outcomes - new car sales volumes decline, used car prices retain more value, people decide to just hold onto their cars a little longer, new cars get de-contented to account for price increases, certain marques/ models exit the market, manufacturers load more incentives on lease deals (money factor, rebates, higher residuals) to keep returning customers leasing, etc.

 

yeah - plus Ford and GM go bankrupt. lol.