Volvo Financing: What To Know Before You Buy

If you’re considering a new luxury vehicle this year and have questions about the costs and financing options for a new Volvo, you’re in the right place. This guide is designed to help you navigate through the various aspects of purchasing a new Volvo, including understanding costs and choosing the best financing option for your needs.

How do your Volvo payments compare to the average?

Use our auto loan calculator to determine how much car you can afford.

If you already have a Volvo financing offer in hand, you’re in luck. We’ve calculated the average monthly payment for the most popular new and used Volvo models based on borrowers’ credit scores. Compare the monthly payment in your loan offer with the estimates in our table to determine whether you’re getting a good deal.

If you’re still looking for an auto loan, you can use our estimates to help you budget for your monthly Volvo payment.

New Volvos – Estimated average monthly payments

Used Volvos – Estimated average monthly payments

Learn more about how we calculated average monthly Volvo payments.

Volvo financing options

You have several different options to finance your Volvo. We’ve compiled the best Volvo financing offers here and outlined the pros and cons of each.

  Volvo Financial Services

Best if...

You are purchasing a certified pre-owned Volvo or leasing a new Volvo.

If you want the convenience of captive financing — that is, financing directly with the manufacturer — you can get a loan for your new or certified pre-owned Volvo through Volvo Car Financial Services (VCFS).

Currently, interest rates for certified pre-owned Volvos start at 5.99% through VCFS, and terms run for up to 72 months. Volvo is currently advertising APRs as low as 4.99% for up to 72 months on certain new Volvo models financed through VCFS. Volvo may offer finance terms of up to 85 months on particular models, though rates for longer terms may vary.

Volvo Car Financial Services doesn’t offer an option to prequalify or apply for financing online. You’ll need to visit a Volvo dealership in order to fill out an application and see what rates you qualify for.

Volvo Roadside Assistance

New Volvos purchased at a Volvo dealership qualify for up to four years of emergency roadside assistance, while certified pre-owned Volvos come with five. You’ll also get a free tow for life to the closest authorized Volvo retailer in a 25-mile radius. You don’t need to finance your vehicle directly with VCFS in order to get these benefits — just purchase your car at a local Volvo dealership.

Loyalty Bonus

Volvo offers a Loyalty Bonus toward the lease or purchase of any new 2023 or 2024 Volvo to customers who currently own or lease a Volvo or Saab or who have owned or leased within the last six months.

Volvo subscription

If you’re looking for a Volvo lease, Volvo has an innovative subscription model worth considering. The subscription comes with a 24-month term, and your payment will cover car use, maintenance and insurance. You can cancel your subscription and return the car after 12 months of on-time payments, though you must get another subscription, lease or loan with Volvo to do so.

Note that the subscription model available in New York and California does not include insurance.

  Bank and credit union auto loans

Best if...

You can get a rate discount from your bank or credit union.

Banks and credit unions often offer competitive terms and interest rates on auto loans, and many will give discounted rates to members and clients as an incentive to finance with them. For instance, U.S. Bank is advertising auto loans with interest rates as low as 7.51% for up to 60 months. Credit union auto loans have APRs that are capped at 18%, so they can also be a solid Volvo financing option.

Most banks and credit unions allow you to prequalify for a car loan online to see your interest rates, so fill out a form on your financial institution’s website to see what rates you qualify for. It’s also worth the time to reach out to a representative to see if your bank or credit union offers a discount for banking and borrowing.

  Online auto loans

Best if...

Shopping for low interest rates for your Volvo loan.

If you’re looking for the best rates for your Volvo, you should get a few quotes from online lenders to make sure you choose your best offer. It doesn’t take much time to review rates for online auto loans, either. You can get up to five quotes by submitting one form to Lendingtree’s auto marketplace. Checking your rates won’t impact your credit.

If you’re having trouble qualifying for financing from a traditional lender, online lenders may be your best bet. Some lenders specialize in offering car loans for bad credit.

  In-house financing

Best if...

You have no other options for Volvo financing.

When it comes to your Volvo loan, you should avoid buy here, pay here lots that offer in-house financing. These dealerships typically offer loans with low eligibility requirements, but you’ll pay for the easy qualification process in the form of extremely high APRs. Many in-house financing dealerships charge predatory interest rates that can make it hard — or nearly impossible — to pay off your loan on time.

If you can’t qualify for a traditional loan through Volvo Car Financial Services or your bank, try getting quotes from lenders that specialize in bad credit auto loans. You can also try raising your credit score before applying for a loan from a reputable lender. Ultimately, improving your credit and getting loans with lower interest rates can help you save thousands of dollars in debt payments.

How did we get these numbers?

For new Volvo models, we pulled the starting MSRP (manufacturer suggested retail price) directly from the manufacturer. We used Kelley Blue Book’s fair purchase price for the pre-owned Volvo car prices. In order to estimate average monthly Volvo payments, we used data from Edmunds and Experian on average down payments, interest rates and loan terms.

You’ll notice that our estimated monthly payments decrease as borrower credit scores go up, except for borrowers with excellent credit (781-850). Car buyers with excellent credit tend to choose shorter loan terms to decrease the amount of interest they pay over the life of their loan. In the short term, this leads to higher monthly payments.

How we calculated average monthly Volvo payments

To calculate average monthly Volvo payments, we found estimated starting MSRPs and the fair purchase price for some of Volvo’s most popular models.

Then, we subtracted an average down payment from each. According to Edmunds, the average down payment on a new vehicle was $7,074 in Q4 2023. For used vehicles, it was $4,122. The resulting figure represents the total amount our hypothetical borrowers financed.

From there, we used our auto loan calculator to figure out average monthly Volvo payments, using average APRs and loan terms as reported by Experian’s State of the Automotive Finance Market Q4 2023. You’ll find this data in the tables below. Please note that loan terms were rounded to the nearest whole number during our calculations.