Volvo’s U.S. Captive to Offer Financing for European Models

  • Natalie Mattila
  • January 9, 2017

Volvo Cars has been chosen by Sweden?s Royal Court to supply 35 all new Volvo XC90s as courtesy cars on the occasion of the wedding between Prince Carl Philip and Ms. Sofia Hellqvist on June 13th, 2015. For the wedding, Volvo Cars will supply 35 XC90 D5 cars with a Luminous Sand exterior with light leather interiors. The cars will come with a special fender emblem to mark the occasion.

Volvo Car Financial Services will begin to offer financing for U.S. and Canadian consumers that want to purchase European models without waiting the usual six-month registration period, said David Carroll, the captive’s national sales manager for Canada.

The program — which will launch sometime in the first or second quarter — is modeled as a European vacation for North American consumers, through which they can order a Volvo vehicle from their local dealer, and then test drive the vehicle in Sweden — where Volvo produces its cars.

After the test drive, consumers can drop off the vehicle at an approved location in Europe, and the OEM will ship the vehicle directly to the consumer’s local dealership for pickup.

The intent of the program is for consumers to be able to purchase and finance models unavailable in the U.S., Carroll said.

Separately, Volvo Car Financial Services in Canada added two new lease payment options with the captive’s launch on Dec. 14 to offer greater flexibility for consumers.

“The single-pay lease option allows a customer to make all their payments in advance so they do not have to worry about a monthly payment,” Carroll said. “In return, the customer receives a reduction in the lease rate.”

Single-pay car leases are often an option for people who want to lease and have the cash to completely pay off the entire lease amount up front, which eliminates monthly payments, he said. “This is great for cash buyers who see the value in leasing a vehicle but don’t want the hassle of payments and also want to keep money in their bank account,” Carroll added.

Additionally, the captive now offers a multiple security deposit option, which allows a customer to make up to 10 fully refundable security deposits at the time of contracting. “In return, the consumer receives a reduction in their lease rate based on the number of additional deposits made,” he said. “This is simply a tool for customers who want to reduce their lease rate and lower their payment.”

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