Why is Volvo so depreciated?
2 Answers
Volvo, as a first-tier brand, has guaranteed sales market share and used car transaction volume, while the sales of second-tier luxury brands are relatively smaller, with lower ownership and used car transaction volume, resulting in lower resale value. Introduction to Volvo: Volvo Group, a Swedish company producing trucks, buses, construction equipment, yachts, and industrial engines, was founded in Gothenburg in 1927. The word 'Volvo' originally comes from Latin, meaning 'rolling forward'. History of Volvo: On February 24, 2021, Volvo Car Corporation and Geely Automobile Holdings Limited jointly announced a merger while maintaining their existing independent corporate structures. Interior of Volvo: The horizontal stylish dashboard design maximizes limited space, authentically presenting the unique Nordic sense of relaxation and harmony. The asymmetrically designed center console allows drivers to operate easily without changing their sitting posture.
I've really experienced firsthand how Volvo cars don't hold their value. As someone who owned a Volvo for several years, I believe the biggest reason is the high maintenance costs. When new, the car looks quite stylish, but over time, small issues start popping up—like electronic system failures or sensor malfunctions. Getting parts replaced at the dealership often costs thousands, and the labor fees are exorbitant. Meanwhile, independent repair shops feel too risky for safety-conscious owners. These repair records stay on the vehicle history, and used-car buyers aggressively lowball offers, fearing future expenses. Resale value directly ties to ownership costs—more people can afford new Volvos, but few want to inherit the maintenance headaches. Plus, while Volvo's reputation for safety is solid, its designs lack the sporty appeal that attracts younger buyers to German rivals like BMW, Mercedes, or Audi. Lower demand inevitably drags prices down. Overall, it's a great daily driver, but selling one feels like a financial gut punch. Hindsight says a Japanese brand would've been the smarter choice for hassle-free ownership.