XC40 first to join new scheme that will let web customers part-exchange their old car
Jim Holder
25 April 2019

Volvo has launched what it claims is the “UK’s most comprehensive online new car buying service”.

The initiative - live at www.volvocars.co.uk/order-online - allows buyers to configure their new car, part exchange their old one and, if necessary, sign a finance agreement online in less than 20 minutes, according to its creators. Volvos can be bought on factory order or from stock, with orders always linked to a retailer which will set pricing. Used Volvos could be offered at a future date. All sales will be subject to distance selling regulations, giving customers who choose to buy entirely online further consumer rights.

Initially only the XC40 will be available through the Volvo configurator, but other models are available to buy online now and configuration will be rolled out from the 3rd of May. Buyers can purchase their car with cash, on a PCP or a PCH, however the latter will not be possible via an electronic signature until the second half of 2019. The configurator is set up to amend the monthly cost of leasing the car as a customer adds options, in order to give them a live quote.

“Whether online or offline, the way people buy cars has changed. Customers now have much more control over the process, and Volvo Online helps them to take that one step further,” said Volvo UK managing director Jon Wakefield. “It makes life as easy as possible without compromising on choice or security, and lets customers drive the purchase process when it’s most convenient for them.”

Other manufacturers, including Hyundai, Peugeot, Ford and Tesla, have unveiled similar online purchasing initiatives, although reports suggest that, to date, they have been more useful for gaining customer behaviour insight than profitability.

“It is very clear that we are entering this space in order to learn,” said Wakefield. “By engaging in this way with our customers we will find out what they want. Our expectation is that a significant number will enjoy the process as part of the transaction, and as we learn we can adapt our service.”

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Volvo also faces strong opposition from intermediary sites that work with retailer groups to offer its cars, often at significant discounts.

These include Autocar’s sister site What Car? which links buyers to retailers of cars at its Target Price - the most its mystery shoppers say you should pay for a new car - or below.

However, Wakefield stressed that individual Volvo dealers will be able to set their pricing for the online initiative. “Our retailers will be free to set prices, but if you are wanting to buy on price alone then there are aggregators out there,” he said. “What we’re offering gives you a guiding hand, with a stress-free brand experience.”

Volvo’s sales to date in the UK are up 39% year-on-year, driven by the ongoing success of the XC40 and new launches such as the upcoming S60. The UK recently overtook Sweden as Volvo’s third biggest market, behind China and the US.

READ MORE

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Volvo primed to replace V40 with SUV-coupe

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Comments
19

25 April 2019

On the site it states "get a guaranteed part-exchange valuation on your current car. " how can they possibly guarantee a price without seeing the car.

Do you pay the full RRP? Volvo would never let dealers go up against each other on the 'net' it would just be a race to the bottom, the only way round it would 'fix' the prices so each dealer can only go to a certain price.

I think Volvo would like to be like Tesla and get rid of the middle man altogether, could save £2,000 per car? Either way wouldn't like to be a Volvo dealer at the moment.

typos1 - Just can’t respect opinion

25 April 2019

....all these Volvo dealers that have spent ££££m's on developing their new sites to meet the criteria of Volvo and their visions, they wont be needed, a portacabin with a bank of computers would surfice!!!

This is exatly what is happening on the High Street.....push people to the internet to buy things  they havn't got it in stock or range availabilty etc.....these stores are closing down as rent, rates, staffing, pensions etc can't be recovered at store level. Volvo sales speacialists will be a thing of the past...... its called Carwow and We buyanycar....... Give the Dealers and Staff half a chance to make a living Volvo!!!!

25 April 2019
Gadget wrote:

....all these Volvo dealers that have spent ££££m's on developing their new sites to meet the criteria of Volvo and their visions, they wont be needed, a portacabin with a bank of computers would surfice!!!

This is exatly what is happening on the High Street.....push people to the internet to buy things  they havn't got it in stock or range availabilty etc.....these stores are closing down as rent, rates, staffing, pensions etc can't be recovered at store level. Volvo sales speacialists will be a thing of the past...... its called Carwow and We buyanycar....... Give the Dealers and Staff half a chance to make a living Volvo!!!!

"Poor dealers" ... really?

They are rip off merchants. The less of them that can exist the better.

The online model works well, and there will still be a requirement for service and repair. Volvo and other manufacturers taking that in-house rather than dealers? At least you might get decent service.

UK dealers are notoriously terrible.

25 April 2019

CarNut170

Are you tarring all dealers with that brush ? The garage I buy my cars from employs over 100 people and I have received nothing but outstanding service ! If they shut down 100 jobs would be lost ! And the ‘model’ is just that ! It hasn’t been tried or yet tested ! And if these dealers DO shut down where do people take their cars for repairs and servicing ?? I certainly wouldn’t want to travel hundreds of miles to get a car serviced if the ‘online model’ forces dealerships to close !!

Borabora2

25 April 2019

Ahh.....you obviuosly buy yours cheaper online (so you think!) and then take it back to the local dealer, the one that didn't supply your car.

That'll be the one you probbaly went to for the brochure, the walk round of the car, the test drive, the one you have been back to ask questions about the car you bought from somewhere else, the one you demand a courtesy car from as you have a niggle, Oh...that'll be the one you have not spent a penny with...all because you can't be bothered to take it back to the supplying dealer who basically just stuck the number plates on, as they're 200 miles away.....ever wonder why you get "terrible" service!!!!

 

25 April 2019

Let's see if the market is ready for it this time. I remember Ford Journey over a decade ago, quickly sank without trace.


25 April 2019
I've just priced a V60 (yea there is more than just the X40) in Momentum trim with the D4 engine with basically every pack you can add @ 10k a year

Used with 6k on the clock these are around £28k or around £800 a month over 48 months based on a rate of 4.3% and you own it outright so it costs you £38,400...

With volvo it cost for the same length term but on PCP £456.80 so that's £21,297

Plus a 5k deposit and that £26,279

GFV of £15,000

So £38,400 - £26,269 = £11,528

So you save that over 4 years

But you end up with no car if you give it back after the PCP ends

Added to the fact you needed £5k deposit which you didn't on a loan

So this is where my rubbish maths falls down as I have worked for 15 hours today

Basically if you want to have the car for 4 years and give it back and have £5k on a deposit then it works lot cheaper if you just care about the monthly cost (without milage and damage penalties being factored in)

Of you intend to keep the car then go for a loan

But £456 a month is more palatable than £800 a month ???

Now I am confused and talking non financial sense but it is interesting

25 April 2019

What happened to their absurdly-high leasing scheme, is it still going?  I filled in the boxes some months back for the XC40 and had a figure of around £640 a month!!!  I can lease a £35,000 car through an online company for half that.

26 April 2019

On the site it states "get a guaranteed part-exchange valuation on your current car. " how can they possibly guarantee a price without seeing the car.

Do you pay the full RRP? Volvo would never let dealers go up against each other on the 'net' it would just be a race to the bottom, the only way round it would 'fix' the prices so each dealer can only go to a certain price.

I think Volvo would like to be like Tesla and get rid of the middle man altogether, could save £2,000 per car? Either way wouldn't like to be a Volvo dealer at the moment.

typos1 - Just can’t respect opinion

4 May 2019
I have bookmarked it.  I was now able latest naija songs to redirect my download hip hop website and naija news

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