View Full Version : Osd savings
barrysharp
04-26-2003, 02:12 PM
During my OSD process I attempted to record all of my costs and expenses in order to compare them against having bought the XC70 MY2003 from my dealership.
I share this information here for others who may be considering the OSD program.
For pricing comparison purposes I used the Edmunds TMV values and the dealership quoted prices for accessory parts, labor and VADIS software download charges. Also, I subtract out my travel expenses incurred while traveling to/from Sweden and trekking about in Sweden/Norway for some 1100 miles.
At FDC I purchased some $800 worth of accessories which would have cost me $1200 thru my dealership.
A large piece of the OSD savings was as a result of obtaining the Premium package for free -- a $2,595 freebie plus Use tax savings.
My Grand Total OSD savings was $9,338.84
My Total Travel Expenses were $2,147.20 for 8 days and two people (this included $400 SAS one-way seat upgrade for my son and me and $323 airfare for my son for LA-to-Seattle return)
Thus, OSD savings - Travel costs = $9,338.84 - $2,147.20 = $7,191.64
I paid $2,000 cash deposit when I ordered the XC70 and paid the balance less my State's Use tax in cash 30 days prior to pickup at FDC. I will pay the Use tax based on the XC70'ss BILL OF SALE within 30 days after picking my XC70 up from my dealership.
Thus in my case if the free Premium package of $2,595 and the Use Tax of 8.4% on this amount is removed along with the travel costs the overall savings would be around $4,400. You could (because this isn't likely for others) also add to this the SAS seating upgrade cost of $400 and the $323 for my son's domestic airfare to arrive at $5,123 in savings using the OSD program.
I was also able to buy headlight covers (minus VAT) from Bilia in Goteborg for my XC70 and for two other forum members who I believe are pleased with them. These covers aren't available in the USA as far as I know. They can be ordered from UK and/or Sweden via mail.
I was also able to buy 3 extra sets of foglight covers for three other forum members for ~$12 each at FDC. Mine were installed at FDC for this price.
The fun time my son and I had together trekking about Sweden/Norway was priceless and will be remembered for ever.
I also believe my OSD experience has rubbed off on at least a dozen of my family members and friends. This is also difficult to place a price on.
I have posted movies/slideshows in other posts and provide links to them here also for your enjoyment.
My Slide Show (http://xc70.com/cgi-bin/ib3/ikonboard.cgi?act=ST;f=7;t=142)
My snow trial in Norway -- Three short movies (http://xc70.com/cgi-bin/ib3/ikonboard.cgi?act=ST;f=7;t=139)
peter24a
04-26-2003, 11:46 PM
Barry:
I take a couple of excpetions to your analysis. First, I would not subtract the cost of your trip from your savings. Those costs were optional. You could have simply flown to Sweden on your free tickets and turned around and came back. The extra days were not required to purchase your car and distort your actual savings. Secondly, I dont think that Edmunds TMV numbers are terribly accurate. I would consider Carsdirect.com more realistic in that even without trying you can buy an xc from them at roughly $600 over invoice. Even so your savings are almost certainly $5,000 or more.
Peter
I agee with Peter--money spent on trip does not applly--I tell people what I'm saving on the car and I get free air-fare & 1 night lodging as well. Our pick-up is our vacation and that would be "money" if I did or didn't buy a car. With a basic reduction of approx. $3,000 across the board on Volvo MSRP, no dealer shipping charge and tax savings on lower total price I would expect that anyone (with or without a lot of extras would save an average of $4,000. More important than the savings alone is the fact of NO DICKERING ABOUT PRICES AND THE ENJOYMENT OF THE PROCESS. An added plus is that this brought me to this forum. merv
Low Tide
04-27-2003, 10:30 AM
Barry can choose to include his trip... but I agree. That's optional. It's all optional. Witness the half-dead people in the FDC that just wanted to "look" at their car before they got back on the plane that afternoon. One guy packed out fruit from the gift basket on the reception counter for dinner on the way back to the airport....
By the same token, look at it from Volvo's perspective...
The other "expenses" Volvo ate in order to make your trip possible in the first place. Those are obviously included in Volvo's calculations of the true OSD cost! ie- air tickets, hotel, taxi, use of the vending machine, free phone, psychological therapy for FDC staff, Jason Borsch's slush fund, etc....
And what about those of us who took the add-on vacations? (free in some cases) I figure our free room in Nice at 400 euros a night has to count for something! Yes, I spent $3200 on the trip, but I saved another $3000 as well courtesy of Volvo. If you were planning a vacation anyway, look at it as half-price. Add the natural savings and the unique opportunity to wrap the two into one trip was quite a deal.
The whole experience is priceless in the long-run. But Barry works for Boeing...he has to pencil it down tothe nearest .5 cent, or he'll get fired!
realq
04-27-2003, 03:01 PM
No question that OSD can be a wonderful experience. But given the incentives and low apr, local purchase wouldn't be that bad money wise. I believe volvo currently has $2500 incentive on xc70 ($4000 on v70), around boston area an well equipped xc70 (premium + touring + child booster seat) can be had for around $33500 (invoice - incentive) + tax. Not bad if no time to travel.
stain
04-28-2003, 05:39 PM
How about my OSD "savings" on my2004 vs local 2003 model?
- 900 (was one day ( !!! ) late to secure 2003 price)
-1000 (maybe more, for a third air ticket for the kid)
- 100 (Mutli-entry Visa to Sweden and Europe)
-2500 (Volvo incentive for remaining 2003 models)
-2000 (dealer's discount of MSRP)
-4000 (4.5% APR)
+ 100 (paint)
+3070 (MSRP - OSD)
- 300 (approx. more used tax on losses above, interest excluded)
=====
-7630 (of total losses)
Oh, my god, what have I done http://xc70.com/iB_html/non-cgi/emoticons/confused.gif http://xc70.com/iB_html/non-cgi/emoticons/confused.gif http://xc70.com/iB_html/non-cgi/emoticons/confused.gif
(Security deposit have been already paid)
peter24a
04-28-2003, 05:46 PM
Stain:
You're kidding....right?http://xc70.com/iB_html/non-cgi/emoticons/confused.gif
Peter
stain
04-28-2003, 05:54 PM
</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote (peter24a @ April 28 2003,17:46)</td></tr><tr><td id="QUOTE">You're kidding....right?http://xc70.com/iB_html/non-cgi/emoticons/confused.gif[/QUOTE]<span id='postcolor'>
I wish I was.
evolvolution70
04-28-2003, 06:20 PM
Well you can't really count all of those losses on MY2003 because well you just didn't have the chance! So you should simply count everything up based on MY2004 prices. I have one question - what's this multi-entry visa to sweden and europe all about? I was under the impression that with a U.S Passport, no visas are required for countries such as Sweden, Denmark, Germany, Belgium, The Netherlands,etc....Am I wrong?
http://xc70.com/iB_html/non-cgi/emoticons/biggrin.gif Calm down!
stain
04-28-2003, 06:38 PM
</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote (evolvolution70 @ April 28 2003,18:20)</td></tr><tr><td id="QUOTE">Well you can't really count all of those losses on MY2003 because well you just didn't have the chance!
what's this multi-entry visa to sweden and europe all about?[/QUOTE]<span id='postcolor'>
Now when the deposit has been paid, I really don't have a chance.
But I could still go to a local dealership shopping for a remaining 2003 car!
Since I am not a citizen of the US, I will have to pay for the visa... http://xc70.com/iB_html/non-cgi/emoticons/sad.gif
not sure if you are using "fuzzy math"
1. $900 INCREASE IN PRICE MAY INCLUDE SAVINGS ON ITEMS NOW IN PACKAGES.
2. Ticket & visa $/s are part of trip or vacation not car.
3. Incentives on 2003's (my dealer has none) and does not include 30,000/4yr maintenance.
4. what is $4,000 apr charge--surely you can come close to loan that wouldn't increase by that much.
5. Haven't seen new osd pricing but if base went up $900 and even if new packages were not including some things which are now extras, you should be within $900 of what the rest of use 2004 with 2003 prices are at. If for $900 above 2003 pricing and you get new Z steering and maintenance then you've done well & I bet when final pkg comes in you will be pleasently surprised. If you let anticipation get the worse of you then you will even lose more because it will carry over into your trip. I surely hope it all comes together and you will be excited as the rest on this forum---merv
peter24a
04-28-2003, 08:05 PM
I think your math is lacking. First of all the $900 increase is fully offset by the fact that my2004 includes scheduled maintenance through the first 30,000 miles. Second, the APR charge is totally bogus. There are plenty of loans out there for 5.00% or even less (check out peoplefirst.com). The extra plane ticket is not necessary as part of the cost of the car. That is simply a vacation. Said otherwise dont take your kid and just fly to sweden turn around and come home....wham $1,000 saved! There are no dealer incentives yet on 2003 cars. I think you are totally off base. Prove me wrong.
Peter
not to mention that you're double counting the dealer incentive of $2500 and the amount off of MSRP $2000. You'll get one or the other, but not both.....if you did, let me know where and I will cancel my osd order now to get it......
stain
04-28-2003, 08:30 PM
</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote </td></tr><tr><td id="QUOTE">There are plenty of loans out there for 5.00% or even less[/QUOTE]<span id='postcolor'>
If you read carefully, you can see that I used 4.5% APR in my calculations. True, I was cheating a littile, I put all 40K to the loan and it's for the 5 year term.
</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote </td></tr><tr><td id="QUOTE">
Said otherwise dont take your kid and just fly to sweden turn around and come home....wham $1,000 saved!
[/QUOTE]<span id='postcolor'>
The kid is 4 1/2 and we have to take her along cause we don't have anybody here who could look after her during the trip.
</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote </td></tr><tr><td id="QUOTE">
There are no dealer incentives yet on 2003 cars.
[/QUOTE]<span id='postcolor'>
I assumed that it was true info posted by realq above in this thread.
Low Tide
04-28-2003, 08:33 PM
He's got to be kidding- at least himself. Stain! Your well within $1000 for the 2004... and that's without an incentive on the 2003. Your getting a "newer" "higher value" car- right? Doesn't that make you feel better. Have fun, and don't "stain" your shorts.
stain
04-28-2003, 09:44 PM
</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote (dhu @ April 28 2003,20:28)</td></tr><tr><td id="QUOTE">not to mention that you're double counting the dealer incentive of $2500 and the amount off of MSRP $2000. You'll get one or the other, but not both.....[/QUOTE]<span id='postcolor'>
A friend of mine has bought a car lately (not Volvo http://xc70.com/iB_html/non-cgi/emoticons/wink.gif ) and he's got official manufacturer incentive on top of what he managed to trade off of the MSRP. So, it's still possible to take both...
peter24a
04-28-2003, 10:12 PM
Stain I still dont think you get it. Yes I said 5.00% and you said 4.50%. Lets assume you are right and you cant get 4.5% from a regular lender (although I think you can). The difference is .5%. The average loan balance over the five years is exactly half of the $40,000 purchase price. So what is the difference in the cost of the financing at 5.005 verses 4.50%? I goes like this $20,000 X .50% X 5 years = $500. That's right the difference in the cost of financing is only $500 NOT $4,000. And that assumes that you cant really get 4.5% somehwere else. Regarding the kid leave him home with Mom go get the car and come home....shazam $1,000 saved. You did not even comment on the $900 including service. Are you ready to give in on this? Really, I think you must be joking about this. Your analysis is so poorly thought out. You just want to see if you can get us all worked up. Right? Well it worked.
Peter
stain
04-28-2003, 10:26 PM
</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote (peter24a @ April 28 2003,22:12)</td></tr><tr><td id="QUOTE">Stain I still dont think you get it. Yes I said 5.00% and you said 4.50%. Lets assume you are right and you cant get 4.5% from a regular lender (although I think you can). The difference is .5%. The average loan balance over the five years is exactly half of the $40,000 purchase price. So what is the difference in the cost of the financing at 5.005 verses 4.50%? I goes like this $20,000 X .50% X 5 years = $500. That's right the difference in the cost of financing is only $500 NOT $4,000. And that assumes that you cant really get 4.5% somehwere else. Regarding the kid leave him home with Mom go get the car and come home....shazam $1,000 saved. [/QUOTE]<span id='postcolor'>
Peter,
I did not compare 4.5% to 5%.
I compared 4.5% (that i CAN get) to 0.9% from Volvo Finance.
I will have to pay $18.70 per month for every $1000 borrowed ending up with 18.70 x 40 x 12 x 5 = $44880 for $40000 loan.
And I cannot make it without Mom. She won't let me to. http://xc70.com/iB_html/non-cgi/emoticons/smile.gif
You are right about $900, i can't add them to the 2004 vs 2003 comparison. But I could have saved the money if I called a day earlier.
peter24a
04-28-2003, 10:33 PM
Stain:
One more thing you forgot to include the savings on the shipping through OSD. They do not charge the $685 for shipping that you will have to pay though the dealer. Your $3070 number (MSRP -OSD = $3070) is correct except for the $685 difference in shipping. The way I look at it your savings are as follows:
$3070 OSD Savings
$685 Shipping Savings
$100 Metalic Paint Savings
($100) For Visa
$3755 Gross Savings
(1,500) Less Any discount you could get off MSRP
$2,255 Net Savings
I am not giving you anything for the financing since financing IS AVAIALABLE through People First at 4.39% for 60 months. I am not giving you anything for extra tickets cuz mom and the child can stay home and you can just go and come back in two days. I am not giving you the $900 since it is offset by free maintenance. And as best I can tell the incentives you mention simply dont exist. Is OSD worth it? Maybe and maybe not. But to say that you paid more for OSD is crazy. Please check with your dealer to see if they have direct delivery available again. This program seems to come and go. But occasionally you can purchase through OSD and not travel to Sweden. You forfeit the tickets but in your case that would be worth it to you.
You're kidding about this. ......Right???
Peter
Shipping :
peter24a
04-28-2003, 10:49 PM
Okay Stain you might be partially right. At least for my part of the country Volvo offers the 0.9% financing for only 36 months and 1.9% financing for 60 months. If you really are going to financing all $40K then much of your OSD savings is eaten up by the financing premium. The difference (in rough numbers) is as follows 2.49% (the difference in the rates) x $20,000 x 5 years =$2,490. If you want to negate much of this difference get a home equity line of credit on your house and buy the car. The interest should be deductable and although the rates are variable you probably would recoup most of your lost financing dollars. Consider deepgreenbank.com at a rate of prime - .05% = 4.20% and no transaction costs. After taxes this money will cost you around 2.50% making up about $2000 of the $2,490 financing difference.
Peter
stain
04-28-2003, 10:58 PM
</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote (peter24a @ April 28 2003,22:33)</td></tr><tr><td id="QUOTE">I am not giving you anything for the financing since financing IS AVAIALABLE through People First at 4.39% for 60 months.[/QUOTE]<span id='postcolor'>
I think if one decides to finance 100%, it's reasonable to compare interest payments. Even with People First, the difference will still be a few grands if you compare to 0.9% from Volvo Finance.
What are the new OSD prices? Haven't seen any posted on any forums just that they should be out soon.
Low Tide
04-29-2003, 07:26 AM
mrb-
OSD increase is $900 over MY2003. Any package changes/inclusions that you paid for as individual options are refundable I believe.
Stain-man
First off, I'm sorry this process is upsetting to you. OSD wasn't designed to be so painful.... albeit, it can be confusing. I hope that you can find peace with your decisions. Either way, your getting a fine car out of this....mess, if you want to call it that.
Now- on to the topic....Isn't Volvo's promo financing avail only on MY2003 that are currently "in stock"?
I was also under the impression that dealer incentives were not yet available on either XC model. Aren't they limited to some engine models in remaining sedans?
Stain, if its going to cost you SO MUCH more, cancel your order and lose your $2000. Simple. Its cheaper than the scenarios you present. http://xc70.com/iB_html/non-cgi/emoticons/cool.gif
As far as I kow, Peter's right.... you can't simply choose all the "variables" that make it look like you are getting screwed. especially the part about being a "day late." Too bad, that's a risk you assumed- and is no reflection on the car, OSD, VCNA, the bank, Volvo Cars International, the XC70 pricing spy here at XC70.com, Taylor's web design company, Barry Sharp (sorry Barry), your dealer....ANYONE, but... guess who?
YOU!
I can't follow the valid argument through to its close....and it isn't because I'm stupid.
The variables have to be compatible.... "and as far as I can smell, the herbs in the soup your cooking don't blend." (i.e.- what are you really financing, and for how long?) Does your dealer have an XC70 that you REALLY want?
Here's my "Carsdirect scenario"
Cars direct shows a saving of $956 over MSRP for my area (2 option prices- I know to be NOT discounted here)
But let's play...
MY03 Carsdirect Price + accessory at dealer price = $40,774
OSD Price (incl access/opt installed at FDC) = $33,050
-$7724
add back my $2495 "free premium" to equal what you COULD have had, and to bring the 2 cars close to parity. Mind you, that can also be said to equal the "ghost incentives" you mentioned
---------------
-$5229
Volvo finance at 1.9% for 60mos. (EFT required)
vs.
Private finance at 2.9% for 60mos. (My loan, EFT req)
vs.
4.75% widely available traditional bank loans (EFT discount)
------
How can you make up $5229 in finance charges and "ghost incentives" to produce a negative balance in favor of a dealer purchase. A Volvo loyalty coupon will give you the first $1000 if your a returnig customer.... $4229 to go. Trip not included.
If the calculations you are making are in fact wholly accurate and Pete and the rest of us are wrong....I'll be the first to suck down a bowl of that soup!
Respectfully,
LT
realq
04-30-2003, 12:18 PM
There is indeed an end of April (started last weekend) incentive $2500 on 03 xc70, just call your local dealer internet manager to confirm it.
purush
04-30-2003, 01:13 PM
Barry, Low Tide, peter24a
The stain-man is going through buyer's remorse. Please leave him alone. He will finally come around to appreciating his purchase. It happened to me when I signed the contract for my first home, and it happened recently when I bought my XC70 (my first luxury car). Spouse and "friends" actualy make the problem harder. They always seem to know of a better deal, which in close scrutiny does not hold water.
Anyway, good luck to stain-man.
purush
stain
04-30-2003, 01:28 PM
</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote (purush @ April 30 2003,13:13)</td></tr><tr><td id="QUOTE">He will finally come around to appreciating his purchase. It happened to me when I signed the contract for my first home, and it happened recently when I bought my XC70 (my first luxury car). Spouse and "friends" actualy make the problem harder. They always seem to know of a better deal, which in close scrutiny does not hold water.[/QUOTE]<span id='postcolor'>
Well said.
Thank you for your support!
barrysharp
04-30-2003, 01:57 PM
</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote (purush @ April 30 2003,13:13)</td></tr><tr><td id="QUOTE">Barry, Low Tide, peter24a
The stain-man is going through buyer's remorse. Please leave him alone[/QUOTE]<span id='postcolor'>
Whooooa there -- My only post here was the FIRST one -- I've simply been reading stain's saga and have not seen any reason to add comments etc.
peter24a
04-30-2003, 02:55 PM
Is there anything to be learned from this thread? I think so. First OSD is not a good as it was when many of us ordered a few months ago. The loss of the free prem. pkg and the addition of dealer incentives (I cant confirm them though nor can I confirm that you can get these incentives AND below market financing) and low financing rates through volvo (If you really are financing 100% of the car and dont mind $800 monthly payments) errode much and perhaps all of the OSD savings. There are still benefits to the program including the free trip (for two people) and at least some savings (depending on how you calculate the financing incentives) over a dealer bought car. But for many the added wait time will not be worth it. If I could not get the deal that I did I probably would have bought from a dealer. But dont be confused by all this, I still think that OSD is the lowest cost option for buying this car.
Peter
Low Tide
04-30-2003, 05:56 PM
Hej Hej-
We all get buyers remorse.... especially when you are paying for a car 5 months before it finally gets to your dealer.
I do not think that anyone is trying to pound Stain-man into the ground... even I- who was blunt as hell.
But by the same token- we're just trying to make stain see that it wasn't so bad afterall. Even in the worst case scenario- its a great experience and no more expensive than a dealer purchase. The experience of seeing the car in its birthplace would make me do it again- even if the car was the same price.
Incentives happen. Even I have questioned the true "value" of what buying the Volvo OSD "way" really is. Its your mind screwing with you. Relax, have a glass of wine and enjoy the ride.
Sorry if I offended you in any way Stain-man. You'll be fine, especially after you get your car.
Hang in there. We're your XC buddies here.... remember that.
Low Tide
04-30-2003, 05:58 PM
oh... and one more thing.... BARRY! You're guilty just by the fact that no one has to remember your name.... in fact I just think of you as "included" in EVERY conversation on this board. http://xc70.com/iB_html/non-cgi/emoticons/biggrin.gif
We Love YOU Barry!!!! except that guy that calls you SHARP!!!! http://xc70.com/iB_html/non-cgi/emoticons/tounge.gif
barrysharp
04-30-2003, 06:57 PM
Thanks for those comforting words http://xc70.com/iB_html/non-cgi/emoticons/smile.gif Yea -- being called SHARP is kinda rude -- wish he would use my real name baz instead http://xc70.com/iB_html/non-cgi/emoticons/laugh.gif http://xc70.com/iB_html/non-cgi/emoticons/laugh.gif http://xc70.com/iB_html/non-cgi/emoticons/laugh.gif
I also wish Stain-man well -- and as Low Tide said "We're your XC buddies here.... remember that" -- no matter what we will help you thru the OSD/FDC process. It's OK to moan/whine/complain -- this is what forums are all about -- if something bothers you then spit it out and we all will jump in and debate it. http://xc70.com/iB_html/non-cgi/emoticons/smile.gif
The thing that has impressed me most about this forum is that unlike 2 other well known forums that respect and "the high road" is paramount and that there are no real disagreements but 2 points of view or perhaps even more presented and one can make up one's own mind based upon intelligent data. And as in our own families that we can disagree on a topic but that has nothing to do with the person but on the subject only. The conclusions occuring now only re-inforces my respect for the Veteran Members of this forum. Merv
purush
05-01-2003, 06:34 AM
</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote (barrysharp @ April 30 2003,16:57)</td></tr><tr><td id="QUOTE"></span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote (purush @ April 30 2003,13:13)</td></tr><tr><td id="QUOTE">Barry, Low Tide, peter24a
The stain-man is going through buyer's remorse. Please leave him alone[/QUOTE]<span id='postcolor'>
Whooooa there -- My only post here was the FIRST one -- I've simply been reading stain's saga and have not seen any reason to add comments etc.[/QUOTE]<span id='postcolor'>
My apologies, Barry.
Purush
barrysharp
05-01-2003, 06:51 AM
Purush:
How's your Nav System working out for you ? I got my Navtech DVD disc yesterday. Navtech sure do spook you reading all the mumbo jumbo Cs & Ts. I see that it supposedly covers all of Canada. Do I have this correct ?
Take care. http://xc70.com/iB_html/non-cgi/emoticons/smile.gif
purush
05-01-2003, 08:46 AM
Barry
The Navigator is great when the DVD has the information you are looking for. For instance, Alberta is one of the Canadian states you can select. While Calgary is covered there is no mention of Edmonton on the DVD map. So the answer to your question is both yes and no.
If you look at the T&C carefully you will see that certain metropolitan areas are covered, and for the rest the coverage is spotty.
Unfortunately, it is not time to throw away those AAA maps yet.
Hope that helps.
sincerely
Purush
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