Volvo XC40 Long-term lease recharge for 485 euros per month, good or bad deal?

Volvo XC40 Long-term lease recharge for 485 euros per month, good or bad deal?


One of the references of 100% electric charging SUVs is shown with attractive monthly payments, all with a commitment period that does not have to be very long. What to try with the Swedish SUV in an electric car through this LLD?

Volvo is one of the manufacturers most active about its range transition to 100% electric. By 2030, The Swedish company aims to offer only electric cars in its catalog.

Currently, its types of electric models are still very limited and XC40 and its derivative Coupé le C40but for the coming of the EX90 and EX60s and EX30, Volvo’s electric range will soon expand. Not to forget sedans and power station wagons to arrive later.

If the range is still limited, Volvo nevertheless offers financing offers for its electric models, and one of them caught our attention: Volvo XC40 Recharge from 485 euros per month for only 36 months in LLD (Long Term Lease). A very attractive monthly payment with a term that we will decide.

Volvo XC40 Recharge offered for 485 euros per month

As with most “start-up” financing offers, this is a basic example. For Volvo, it’s the “Start” trim level that takes on this role, and as you can see from the main equipment list below, it’s absolutely perfect for an entry-level model.

  • Route Changer Assistant
  • It pulls back the camera
  • Rain sensor
  • 12-inch digital instrument cluster
  • Dynamic Power Steering
  • Road sign information
  • Speed ​​limit
  • LED lights
  • Front and rear parking sensors
  • Speed ​​controller
  • Power folding exterior mirrors
  • Collision warning system (Intelligent Safety Assist)
  • Automatic dual zone climate control
  • 19-inch alloy wheels
  • Charging cable 3 way Type 2, three phase 32A
  • Schuko mains plug charging cable, 10 A (7 meters)
  • Apple CarPlay
  • Inductive phone charger
  • Bluetooth connection
  • Volvo Cars software remote jobs – included for 4 years
  • Google Assistant, Google Maps and Google Play Store, included for 4 years
  • Digital World Radio (DAB+)
  • High performance sound system

Volvo XC40 Recharge offers two other finishes above (“Plus” and “Ultimate”), but they are not affected by this offer at 485 euros per month. These films include interesting, but not necessarily the most important, features, such as a sunroof, a Harman / Kardon Hi-Fi system or a 360° camera.

As a basic example, the end of the Volvo XC40 in “Start” has enough equipment, with black colors as standard and beautiful 19-inch rims. In terms of beauty, of course, this is the first SUV. In addition, it has Google infotainment services as standard, as well as the biggest in the premium world as it is one of the most advanced systems to date.

At this price, it is Volvo XC40 Recharge and its battery with a total capacity of 70 kWh and his freedom 425 kilometers according to the WLTP cycle. Freedom in urban areas is announced at 598 kilometers. If you ask yourself what means a distance of 400 km in practice, you can read our file on that topic.

What are the eligibility criteria for the Volvo XC40 Recharge LLD offer?

It is about a long term rental offer up 36 months and 10,000 kilometers per year, ie 30,000 kilometers in total. Volvo indicates that the offer of 485 euros per month depends first tax of 6,000 eurosbut this is absorbed by ecological bonus of 6,000 euros. The contribution therefore falls to zero euros.

From next year, the maximum bonus will increase to 5,000 euros and the financing offer will change as it will be valid until December 31, 2022. So the models involved should be available before the end of the year, so it will be a model in the market.

How much will Volvo XC40 Recharge LLD cost you?

Over three years of long-term leasing, your Volvo XC40 will cost you €16,975. Volvo shows its car from 43,950 euros on its website, the ecological bonus of 6,000 euros is not deducted. This gives us, once the deductions have been made, the model shown at list price €37,950.

Starting at this price, you will pay for three years of lease 44.7% of the price of your car. This is slightly more than a discount of more than three years for this type of vehicle, especially for electric vehicles where demand continues to increase, thus indicating some price stability. The offer does not exist LOAthere is no option to redeem the car. It will therefore be necessary to return the car at the end of the financing.

Be aware of repair costs, these can be high on return. We advise you to do it first at a body builder, it will cost you less than at your general dealer. If you take the car back to your dealer after your LLD, they will be a bit wary of repair costs.

Should we recommend an LLD or a conventional loan?

Few consumers buy their new car outright. Almost 80% of new car purchases are financed today, either with a LOA / LLD, or with a conventional loan. And precisely, compared to a conventional loan, is the LLD offered by Volvo more attractive?

Even if the rates have increased in recent months, they remain attractive, especially if you are buying an electric car. For example, at Crédit Agricole Île-de-France, thanks to the “Green Vehicle Loan” with its APR of 1.92%There is a way to achieve a lower monthly payment due to the price of the car.

A few weeks ago we found out funding file about the new MG4 by including the “Green Vehicle Loan” offer with an APR of 1.49%. When contacted, Crédit Agricole confirmed to us that it has increased the rates of certain projects, including this one since 11/10/2022 (+ 0.42 points for the entire duration of the loan). However, the offer remains profitable: 1.92% from 12 to 84 months and no management fee.

So, for funding €37,950 (ecological bonus of 6,000 euros deducted), still over 35 months, we receive a monthly payment of €1,115.46, without insurance. The total amount owed is €39,041.27the loan will have cost €1,091.27.

Note that Crédit Agricole is not the only bank to offer this type of loan electric cars. For example, at the national level. CIC recommends a rate of 2.15% by financing a zero-emission car. CIC has also recently increased its rates, since a few weeks ago, it was 1.75%.

Things to remember

As you can see, from a purely financial point of view, a conventional loan in a bank, in this case Crédit Agricole and its “Green Car Loan” offer, is not the best solution, at least in the short term. In fact, the monthly payment is twice as high compared to the LLD offered by Volvo.

Volvo XC40 Recharge LLD Standard loans
Bring it 0 euros 0 euros
Maximum mileage 30,000 km
Time 35 months 35 months
Monthly payments cost 485 euros €1,115.46
Cost of financing €1,091.27
Total cost €16,975 €39,041.27

The difference is explained only by the fact that for a conventional loan, you finance the whole car and, at the end of 36 months, this is yours. And you have no mileage limit. When it comes to LLD, you only pay part of the car and at the end of three years you have to return the car and pay a fee if you exceed the mileage limit.

Even if the total monthly payments are internationally consistent with the original car discount, the The LOA solution is only interesting if you want to change cars frequently by paying for the car part, without bothering you with reselling. Another positive thing, in LLD, maintenance and warranty is included throughout the financing period.

LLD is attractive if you don’t have too much visibility on the used price of your car and you already know that you will resell it. With this type of financing, you know in advance the total cost of ownership of your vehicle. On the other hand, with cash or credit, you cannot know this price, as it will depend on the selling price.

However, the demand for electric vehicles is constantly increasing, The price should not decrease as quickly as the heat exampleespecially and restrictions on the circulation of certain old diesel and gasoline vehicles in certain urban areas.

Volvo’s first 100% electric car, the XC40 Recharge Twin, enters the scene with a lot of promise, starting with 408 horsepower and more than 400 kilometers of range on a single charge. Check out our review…
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