A Volvo XC40 can be expected to depreciate about 56% within five years of use. After all that, its resale value is estimated to fall at a little below $18,000. This only applies if the engine of the car is in a fairly well-maintained condition, and that it has an average consumption of about 10,000 miles on an annual average. This also supposes that buying it brand new would cost the buyer at a little over $40,000
For the past two consecutive years, the 2021 Volvo XC40 has been awarded the Best Resale Value Award by Kelley Blue Book. The luxury compact SUV is a vehicle that holds strong residual value, and people appreciated its contemporary design and full set of safety features. This included lane keeping alert and assist, blind spot warning and pilot assist technology.
Is it Better to Buy a New Volvo XC40 vs. Used?
In the event that you buy a used Volvo XC40 that is around two years old, you will be able to save a little over $11,000 more than if you were to purchase it brand new. This is a great idea, as two years isn’t that much of a long time. That means that the vehicle is also unlikely to have a lot of wear and tear at that point.
In the future, if you plan to keep this vehicle for about three years, it would cost you nearly $12,000 in terms of depreciation. It is best to look into cars that have experienced differing degrees of use to find a point of depreciation that fits your budget and needs best. As a whole, though, it is in your best interest to go for vehicles that are older than two years and younger than four. You could also compare different quotes and sources to get the best deal.
How to Maintain the Value of a Volvo XC40?
Keeping up the value of a Volvo XC40 can be helped by paying close attention to depreciation rates, as well as how well the car ranks among others in terms of longevity, durability, and reliability. But that is only half of the work. Another area that may help retain a car’s value is in how the owner takes care of it. In this case, you should be prepared to pay for regular maintenance and repairs.
It is important to have a good maintenance record with your Volvo XC40 to keep it in tip-top shape. When you have a service contract in place, you will get the assistance of professionals who can provide you with the best service and parts that will be needed to keep your car running smoothly. It will also help save money in the long run.
As a buyer, this rule can still be applied to you. The longer you own a car, the more it will cost to maintain it. The value of your vehicle may decrease once you keep having to pay for maintenance that is no longer covered by the manufacturer’s warranty.