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Volvo Coronavirus Financial Relief and New Car Incentives

Just two months ago, Volvo Car USA had announced some stout sales figures for the month of February, marking the automaker’s best sales month in over 10 years. Volvo was in the midst of an 18.2% year-over-year increase, in comparison to the brand’s sales totals from February 2019. The auto brand’s appealing lineup of sport utility vehicles helped to achieve these admirable sales numbers, with the newly-updated XC90 up over 21.7% in comparison to February 2019, and the popular XC40 up an astounding 64% from the previous year.

Volvo Coronavirus Financial Relief and New Car Incentives

When March came around, the Coronavirus pandemic wreaked havoc on the globe, inciting a health crisis that infected millions around the world and all but demolished the global economy as we know it. Here in the U.S., many states and localities have been forced to shelter-in-place and suspend business operations for many organizations.

The automotive industry has been hit particularly hard by the COVID-19 crisis, and Volvo has been unable to escape the fallout. Like many companies, the automaker’s sales tanked in March, dipping 42.7% for the month. While the brand was riding the high of its boosted sales figures to start 2020, the dramatic decline experienced in March was enough to shift a substantial sales increase at the beginning of the year into an 11.7% total decline for the quarter.

In response to the growing concerns surrounding COVID-19, Volvo is offering customers a number of Coronavirus car payment plans and new car incentives in an effort to help re-establish the momentum it had at the beginning of the year, and provide relief to customers who face economic uncertainty as a result of the Coronavirus.

Volvo Customer Relief Programs - Find the best deals!

Efforts to throttle the spread and severity of the Coronavirus have led to the dramatic shutdowns of many industries around the world, including North America. The work stoppages have resulted in millions of workers suddenly finding themselves unable to produce income. In turn, many Americans are scrambling to pay their rent or mortgage, let alone trying to find ways to make their monthly car payments.

Volvo owners and lessees who are struggling to make ends meet may be eligible for certain relief offerings from Volvo Car Financial Services (VCFS). Payment extensions are being offered to VCFS customers who find themselves negatively impacted by the COVID-19 crisis. 

Additionally, Volvo customers whose lease terms are set to expire within 30 days are eligible to extend their current VCFS leases for up to 60 days. Customers must keep current insurance on the vehicle to be eligible for this offer. Individuals who wish to take advantage of this offer and request a lease extension are encouraged to access their accounts online at Volvo Car Financial Services. Lessees who do not wish to take advantage of this offering and would rather return their leased vehicle are being asked to contact their local Volvo dealer directly and use the Volvo Valet app to schedule drop-off and pickup appointments.

These payment extensions and relief programs will be extended to customers on a case-by-case basis. For more information on eligibility and further details regarding these offers, customers should contact VCFS directly to discuss their individual circumstances.

Volvo understands that many customers who need financial assistance own or lease one of its vehicles through a lender other than VCFS. For these individuals, Volvo encourages them to contact their lender or leasing company directly to discuss their specific situation. Numerous banks and finance companies are currently offering payment relief options to customers, in light of the global health crisis. Discussing your current financial situation with them is best practice in understanding your available options.

 
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Volvo New Car Incentives - Find the best deals!

To date, Volvo has not yet announced any sales promotions directly associated with the fallout of the Coronavirus. Rather, the auto brand has continued to offer a number of regional and local incentives on new vehicles. 

In many parts of the U.S., consumers can purchase an XC90 T5 Momentum with a 2.99% APR rate for up to 60 months, with up to $3,500 in allowances. Volvo also offers its vehicle "subscription" service on many of its most popular vehicles. Subscriptions to the XC90 start around $800/month for two years with zero dollars due at signing. Additionally, Volvo will cover the cost of the first 30 days of the subscription, which includes maintenance, insurance, and some "wear-and-tear." Similar subscription, purchase, and lease options are available on most vehicle models, including the XC40 crossover and the popular XC60

On the company’s website, Volvo Concierge offers customers digital access to dealers, assisting them in getting familiar with vehicles before getting in contact with their local dealer. Volvo is also utilizing virtual product walkarounds, AR capabilities, and Google Lens to reach its prospective customers who must shelter-in-place as a result of both national and local mandates. The automaker is also using FaceTime to perform a live walk-around with customers, and the company is also using Volvo Valet to schedule service pickups and deliveries.

Volvo Factory Closures - Find the best deals!

Volvo employs roughly 40,000 full-time employees and manufactures its vehicles in Sweden, China, Malaysia, Belgium, and the U.S. Volvo Cars' head office is located in Gothenburg, Sweden, and the company is owned by Zhejiang Geely Holding of China, which acquired Volvo back in 2010.

A spokesperson for Volvo Car USA recently told J.D. Power, "We are now planning for a restart of our car plants in Sweden and Belgium on April 20 while the restart of our Charleston [South Carolina} plant is planned for May 4. All our China operations are running and both production and demand are approaching normal levels."

Volvo's staff in North America continues to work from home due to shelter-in-place orders that have been extended throughout the nation. The company has offices in California, South Carolina, and New Jersey that have been closed due to state orders. Though stay-at-home restrictions have limited both travel and commerce, many Volvo dealers are delivering new cars directly to the homes of new customers, and nearly every dealership’s service and repair departments continue to stay open to serve customers during the pandemic.

Volvo Economic Outlook & Sales Forecast - Find the best deals!

Domestic and international vehicle manufacturing remains in a stalemate, with nearly every U.S. factory remaining shutdown as we begin the month of May. When recently asked about the effects that COVID-19 would have on its potential sales, a Volvo spokesperson stated, "We cannot speculate on future sales."

J.D. Power released a statement regarding its 2020 outlook of 16.8 million U.S. light-vehicle sales, an outlook that was calculated before the globe was ground to a halt because of COVID-19. Due to the substantial strain the virus has put on the entire economy, it is no longer feasible to realistically attain these figures. J.D. Power expects sales to likely fall in the range of 14 to 16 million units due to the growing recovery efforts ahead due to the Coronavirus.