New coverage plan - 5 years all included

[cbj]

Just got an email from Volvo. They really bumped up the service, its even better than the BMW plan:

http://www.volvocars.com/us/salesandservices/Pages/VolvoLoyaltyOffers.aspx

I was in the market for new car that would be really tempting. 5 years with no cost of ownership at all. It will be interesting to see what my 2007 will cost me.

[JRL]

This is new news?:confused:

[cbj]

To me it was didn't my post give you that impression :)

[JRL]

This has been around for a while now, even on a new bunch of TV ads

[Mink]

We've had this in South Africa for many years now (probably been testing the idea for the American market!) You can even buy another two years and 40,000km from an insurance company which is part-owned by Volvo South Africa. Of course, they add the cost of the 5year/100k maintenance plan to the price of the car, so it isn't "free" at all, but it sure is nice to pick up your car after a service without even asking about the bill.

However the resale value of cars with maintenance or service plans (which is virtually all of our new cars here) drops dramatically after this cover expires. I'm talking a third or more off the value overnight! I've also found that the cost of maintenance and repairs by the dealers isn't as high as I thought, which makes me wonder if they promote a feeling of panic when the maintenance plan expires, to get us to trade in on a new(er) car.

But this also means that you can pick up an '06 or '07 with over 100,000km on the clock, or an '04 with low mileage, for less than the cheapest new car on the road. Even if you factor in the cost of a new gearbox, tires, suspension overhaul, cam-belt services etc you're still behind the wheel of a great car, with low insurance premiums, and zero depreciation.

[cbj]

You should think that they would be good cars to buy if they have been factory maintained.

JRL I do not watch much TV.