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  1. #1
    Join Date
    Oct 2004
    Posts
    4

    Default osd pricing and financing

    hi all,

    thank you for such a wonderful forum. i accidentally found this place and have spent the last few hours reading posts on here. i still have a few questions regarding osd and hope that i'm not repeating something already posted here.

    is the 8% off msrp price posted on flyvolvo.com what you pay the dealer? is this a no haggle price or is there room for negotiation like if you bought a car off of the dealer's lot?

    is it also true there's no destination charge?

    when do you pay for the car? when you order? before you pick up in sweden?

    and if i decide not to pay cash, would volvo finance arrange loan or would i have to go elsewhere such as peoplefirst (or capital one auto finance)?

    thanks for all your advice!

  2. #2
    Join Date
    Sep 2002
    Location
    Silver Spring, MD
    Posts
    2,124

    Default

    Having recently closely examined the OSD option I'll offer my opinion on it.

    Financing.
    2k deposit on order. -not refundable.
    30 days prior to pickup in Sweden the balance is due.
    3 weeks prior to pickup (about) VIN available. That's the rub if you finance outside of VCNA. IF you have a relationship with a bank or lender you may be able to work it out so they pay for the car understanding they may not get a vin right away or the pinkslip until it has been registered in the US. If you do it through VCNA, they work it out, no problems. I didn't think their rates were very good and my wife & I have excellent credit.

    First, the deal (OSD) on an xc70 is invoice for the base car, but msrp on all options. There is no haggle/room for negotiation. It is what it is.
    If you get a loaded car it will be more expensive to do osd than negotiating a deal. + a dealer deal will also put any factory-dealer incentives, holdback and factory - buyer incentives on the table. If you're willing to do an 04 there are some incredible deals out there.

    I just ordered and spent several thousand k less than what it would have cost to get a loaded xc through osd. If you order a lightly optioned xc you'll save more through OSD.

    Here's where I'd suggest you start:
    Go to edmunds or something similar and get the invoice & MSRP pricing for the car, and each option you specifically want and do the math. Dealer- Invoice for car + invoice for options - the holdback and dealer incentives. Compare that to OSD- invoice for car + msrp for options - delivery.

    If you're a AAA member for six months you can get a $500 rebate after you purchase the car. You don't need to involve the dealer in that at all. Also $500 for VCOA membership longer than six months.

    I am not factoring in the costs of the VCOA or AA rebates, airline tix, bonus travel deals (spain and england are an outstanding deal. -something like $450 for two ppl including air and three nights hotels in London or Barcelona & airfare from gothenberg. IF you add in the cost of a European trip, OSD may save money. Airline tickets are pretty cheap right now. Certainly you'd also have to factor in all the cash you'd spend while over there.

    IMO, it comes down to whether or not you'd want to go to Europe without the OSD program.

    In the future I'd love to do an OSD, but it wasn't worth the cash to me right now.
    Last edited by littlewaywelt; 10-20-2004 at 06:31 PM.

    2005 XC70 Barents Blue & Taupe leather, deliv. 12/04, built 11/04
    Prem / Conv / Climate / DSTC / NAV / 650 / Sirius / 60/40 / 3rd Row / Boosters / Thule / Weathertech mats / Mud Flaps / 46% Tint / Nokian WR SUVs

    serviced by Red Bank Volvo, NJ & Volvo Westport, CT
    2001 V70XC~someone else's problem vehicle now
    VolvoClub ofAmerica

  3. #3
    Join Date
    Aug 2003
    Location
    Plymouth, Minnesota
    Posts
    253

    Default

    When we did it last year VCNA won't finance the car since they never offically own the car. You are on your own if you wish to finance.

    Also, the trip is very fun and exciting so that in itself is worth any extra price. Another nice thing is there is no destination charge (695 dollars in my area I think). We ended up spending about 5-6 thousand less than if we bought through the dealer.
    2005 XC90 2.5T AWD-Titanium Grey Metallic & Lt. Taupe Leather -OSD July 8, 2005. Premium, Versatility, and Climate Packages, IPD running boards, and XPEL clear bra.

    2004 V70 AWD-Nautic Blue & Tan leather-Premium Pkg, Sport Pkg, GT, Cold Weather Pkg, Boosters, OSD Oct 2003 - Sold October, 2005. One of a kind color combination.

  4. #4
    Join Date
    Aug 2004
    Posts
    3

    Default Financing

    I noticed there are some difficulties associated with getting financing. I can pay all of the money up front, however, will this make it difficult to get automotive financing to repay a portion of the upfront money?

    Thanks

  5. #5
    Join Date
    Feb 2003
    Location
    Dimock, PA
    Posts
    1,559

    Default

    It is very true that getting a loaded car through OSD will not generally save you money. One potential way to get an OSD car with significant options at a better price is towards the end of a model year. OSD may then offer specials on prebuilts that they haven't already sold. Of course, finding a car with all the features you want can be difficult, particularly if you aren't prepared to wait until such offers are made and then to move quickly to identify and lock in a car that meets most or potentially all of you wishes. William, who frequents this site, made is possible for us to get our S80 that way. We got a great deal and a wonderful trip but we were flexible....

    Bill
    Bill
    63 PV544 (attempted restoration)
    83 245 DL OSD (transferred to son)
    85 240 GL OSD (transferred to son)
    03 XC70 OSD (traded-in 4/12)
    05 AWD S80 OSD (transferred to son)
    12 XC70 T6
    16 S60 T5 Drive-E (FWD)

  6. #6
    Join Date
    Aug 2005
    Location
    Baltimore, MD
    Posts
    2

    Red face

    Hello...

    New member to the forum, hoping not to be asking a question which has previously been addressed (and the answer to which I have not yet found)...

    I have been weighing the pros & cons of OSD vs. dealer order for a 2006 XC70 with many options (climate, convenience, premium packages & metallic paint, IAQS, Four-C chassis, DTSC, Xenia wheels, HU-850 stereo upgrade). I have been able to obtain a dealer quote for employee pricing (i.e., invoice price) plus a $500 marketing fee (which negates the current $500 incentive). I have not yet attempted to negotiate beyond this, since I'm also considering OSD.

    My question, mainly: Is the current (thru 8-31) $2500 manufacturer to dealer incentive applicable for OSD? Is it applicable for regular factory orders? Or, is this something that is only useful for vehicles on hand? I'm wondering what I can attempt to negotiate, and whether OSD is a viable option from a $ perspective (absolutely from a 'fun' perspective!).

    Thanks so much... And congrats on a fabulous forum!!!

    -Ronnie-
    aka XenieWenie
    Last edited by XenieWenie; 08-17-2005 at 12:43 PM. Reason: Corrected grammatical/typographical error :-)

  7. #7
    Join Date
    Apr 2006
    Location
    Maryland
    Posts
    6

    Wink

    XenieWenie
    First of all - the trip is worth the deal on OSD, even if the pricing was comparable to the US Dealer price. Many times they throw in incentive packages. In 2003, we did 2N in Sweden, 3N in London (No extra charge) as part of the winter incentive. This year we're participating in the X-Sea Challenge & when you add up the fact that ther'es no destination charge, as Tom listed, they are throwing in the Climate & Convenience Pkgs., and our Dealer honored a $250 discount because we are return customers -- It netted to 12.5% below the MSRP! (Not counting the price of the trip, but you couldn't even buy economy airfare for the price, and this deal includes business class tickets)
    If you are on the fence- I say go for it, and you might want to consider the Ocean Race Edition to the XC70.

    EVGuy

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