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New way to buy an electric Volvo launched in South Africa

Volvo Car South Africa has extended its guaranteed future value (GFV) finance offering to its electric fleet for the first time.

“Previously, the Volvo Versatility Finance scheme was available only for the Swedish firm’s combustion-engined vehicles,” said Greg Maruszewski, Volvo Car South Africa Managing Director.

“But, in response to growing local demand for electric vehicles (EVs), the company has added the XC40 Twin Motor Recharge AWD Ultimate to the list of eligible cars, while also further refining its GFV offering.”

The scheme guarantees buyback of the car at a “competitive predetermined value” following the expiration of the finance contract, and it is only available until the end of September 2023.

The EV in question currently has a starting price of R1,298,000 and is positioned as the flagship model of the XC40 family.

How it works

Buyers of the electric XC40 will now have the flexibility to choose between a 36 and a 48-month GFV contract period, with a mileage cap of 20,000 km per annum for both timeframes.

When signing the dotted line, consumers will also have the option of putting down a 10% deposit to make the monthly instalment more affordable.

Based on these parameters – the chosen term and deposit – consumers can expect to benefit from a GFV of approximately 60-61% depending on the chosen contract period, according to the manufacturer.

“The scheme guarantees buyback at a competitive predetermined value – provided the stipulated mileage parameters are not exceeded and the “wear and tear” conditions are met – after the agreed-upon contract term,” said Maruszewski.

After the contract has expired, the customer will have four options:

  • Return the vehicle
  • Buy the vehicle outright
  • Trade in the vehicle for a new model
  • Refinance the remaining balance on the vehicle

“Local demand for EVs continues to gain momentum. The extension of our guaranteed future value offering gives more South Africans the opportunity to get behind the wheel of an electric SUV,” said Maruszewski.

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