2002 Warranty ending - time for new [Archive]

volvoshad

02-01-2007, 08:07 PM

A local dealer is offering a cheap lease on new models. My 2002 is just fine, but I am a little nervous about repair costs once the extended warranty ends this summer.

I haven't had a lot of problems:

- ignition receiver in steering column
- one window control
- stuck switch on dome light
- several stabilizer bars
- both rear wheel bearings
- one motor mount

The car is in quite good condition.

Any thoughts? I own this one and am paid a car allowance as part of my job - could sell and wind up with cash in pocket.

You stated that you are concerned about "repair costs." So is this really a financial question? If so, keeping your current car wins hands down. Leasing a new XC70 around here (Pittsburgh) will probably cost around $3500 (USD) up front with a payment of about $350/month for 3 years. Assuming that you don't exceed the mileage limitations, you will spend over $15000 to drive a new one for the next three years. Volvos are expensive to maintain, but I think it unlikely you will have this much in repairs. True, you could sell or trade your current car to pay for all of this, but I think that you will find that you won't be getting much more than this amount for your current XC, and at the end of your lease you will have no equity at all for the next car. Bottom line is that leasing is the most expensive way to drive. I realize that many rationalize leasing with tax advantages, only paying for part of the car, etc., but if you really run the numbers, it is more expensive to lease.

There are other reasons to get a new car besides financial considerations, of course. If piece of mind is what you seek, you could purchase an extended warranty. This is a lot of money too, statistically more than average repair costs, but still way less than a new vehicle. Or perhaps you want 208 hp, Haldex AWD, DSTC, or even a different color. For these things, you need a new(er) one. But, unless your current car is an incredible basket case, it will be far cheaper to keep the one you own.

I have an '01, the MY that registers the most complaints about reliability. Despite the fact that my particular car has been pretty reliable, I have considered getting a newer vehicle too for this reason. I don't have a warranty anymore, so if the tranny goes, I'm out at least 3 grand. However, I have considered the depreciation on the car plus the cost of a newer Volvo with a warranty, and guess what: replacing the tranny, however painful, is still the less costly option. If you like your car, if it has been reasonably reliable, and meets your transportation needs, keep it. Members of this forum and others can help you to maintain your vehicle in top shape, troubleshoot problems, and find the least expensive options for repair and maintenance. You will save money in the long run, and, sometimes I forget this, there are other ways to spend your money besides on cars.:rolleyes: