Am i seeing things?

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tedblog

Original Poster:

1,438 posts

81 months

Wednesday 9th November 2022
quotequote all
Today Volvo released details of the xc90 replacement, the xe90 , it starts at £98k !
Who has the money for these normal cars?

TheDeuce

21,722 posts

67 months

Wednesday 9th November 2022
quotequote all
tedblog said:
Today Volvo released details of the xc90 replacement, the xe90 , it starts at £98k !
Who has the money for these normal cars?
I suppose the first owner (leaser) will have it for three years and pay about £10k more in that period than they would have done for the equivalent XC90. They'll save most of that vs paying fuel costs and justify the rest by having a newer and superior (and more 'on trend') car.

That and the fact that nearly all £60k+ EV's are bought by company owners who don't have to pay BIK on them right now. Once that market is fully saturated prices will come down as they'll then need to be selling to people that aren't in that position.

SWoll

18,441 posts

259 months

Wednesday 9th November 2022
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That's for the launch edition Ultra model with every option, the largest battery and most power.

You can pay £85k today for a PHEV version of the existing XC90 on Volvo's website, it's their flagship car.


bigothunter

11,297 posts

61 months

Wednesday 9th November 2022
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tedblog said:
Today Volvo released details of the xc90 replacement, the xe90 , it starts at £98k !
Who has the money for these normal cars?
Read somewhere that the average UK domestic budget for a private new car was £22k.

Only another £76k needed to afford that Volvo hehe

bigothunter

11,297 posts

61 months

Wednesday 9th November 2022
quotequote all
SWoll said:
That's for the launch edition Ultra model with every option, the largest battery and most power.

You can pay £85k today for a PHEV version of the existing XC90 on Volvo's website, it's their flagship car.
It's a bargain rofl

Doofus

25,832 posts

174 months

Wednesday 9th November 2022
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I watched the very watchable Nicola Hume today reviewing a Citroen C5 Hybrid thing.

The petrol version starts at £28k. The PHEV starts at £40k.


TheDeuce

21,722 posts

67 months

Wednesday 9th November 2022
quotequote all
bigothunter said:
tedblog said:
Today Volvo released details of the xc90 replacement, the xe90 , it starts at £98k !
Who has the money for these normal cars?
Read somewhere that the average UK domestic budget for a private new car was £22k.

Only another £76k needed to afford that Volvo hehe
That's why the average new car tends to be quite depressing. IE, a Peugeot. A car bought exclusively by people that remeber to indicate shortly after starting to turn the wheel, and endlessly attempt to merge onto motorways at 16 mph and then get stuck at the end of the slip road.


Murph7355

37,760 posts

257 months

Wednesday 9th November 2022
quotequote all
tedblog said:
Today Volvo released details of the xc90 replacement, the xe90 , it starts at £98k !
Who has the money for these normal cars?
Our mk2 is pushing 90k miles now, so have been waiting for this to come out as willl be looking to replace the current car in a couple of years.

Was fully expecting it to be close to £100k. Wasn't disappointed I guess.

sjg

7,454 posts

266 months

Wednesday 9th November 2022
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Specced up dual motor “ultimate” edition is all that’s available at launch. Single motor modest spec is meant to start from £75k. Chunky but it’s from £71400 for the old xc90 in PHEV form.

dhutch

14,391 posts

198 months

Wednesday 9th November 2022
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bigothunter said:
Read somewhere that the average UK domestic budget for a private new car was £22k.

Only another £76k needed to afford that Volvo hehe
The most I've ever spent on a daily was £2.2k.

Given that provided a 3ltr BMW 3 series which pretty much hasn't missed a beat for 7 years. I can't see me owning an EV any time soon sadly.

mclwanB

602 posts

246 months

Wednesday 9th November 2022
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I read an article today stating that Tesla makes 8x as much profit on an EV than Toyota does on an ICE... 10K profit per vehicle vs 1.2K

I'm guessing that the prices will readjust at some point but while everyone is told EVs are really expensive they'll keep having to pay top dollar

SWoll

18,441 posts

259 months

Wednesday 9th November 2022
quotequote all
bigothunter said:
SWoll said:
That's for the launch edition Ultra model with every option, the largest battery and most power.

You can pay £85k today for a PHEV version of the existing XC90 on Volvo's website, it's their flagship car.
It's a bargain rofl
Obviously not, but it's not in any way surprising either. Big, new, shiny things are very expensive, welcome to 2022.

mclwanB said:
I read an article today stating that Tesla makes 8x as much profit on an EV than Toyota does on an ICE...

I'm guessing that the prices will readjust at some point but while everyone is told EVs are really expensive they'll keep having to pay top dollar
That was an average across all cars so not really a useful comparison. Toyota go for volume and sell almost 11 million cars a year globally with prices starting at £12.5k in the UK. They're doing most of their business in a far more competitive sector of the market where magins are exceptionally tight.

Edited by SWoll on Wednesday 9th November 23:00

Europa Jon

555 posts

124 months

Wednesday 9th November 2022
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Supply and demand, chaps. The supply is far, far smaller than demand at present.

TheDeuce

21,722 posts

67 months

Thursday 10th November 2022
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Europa Jon said:
Supply and demand, chaps. The supply is far, far smaller than demand at present.
Yep, that plus the incentives being offered in the UK and elsewhere gives rise to price hikes = the manufacturer takes a decent % of the intended price reduction!

And there's zero political will to interfere with high EV costs because the truth is it's costing billions for the industry to develop EV's and survive the transition from ICE to 100% EV, so it's being left to play out unregulated in terms of rising car costs, in addition to other global factors also ramping up costs.

I'm not suggesting there are villains at play here, it's just the set of circumstances that exist right now. Probably a good thing if it stops households of four casually running 3 cars.

DMZ

1,401 posts

161 months

Thursday 10th November 2022
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On the supply, I’m not sure Volvo or Polestar have been as badly affected as the German brands. Someone I know wrote off a brand new Volvo recently and got a new one within a couple of weeks. Mind you, there seems to be plenty of unsold iX’s around too but there are perhaps some fairly obvious reasons why that car isn’t flying off the shelves.

£100k for a car like this does seem a tad pricey but it’s certainly on EV trend by being bigger, heavier, more expensive and with debatable design inside or out.

SWoll

18,441 posts

259 months

Thursday 10th November 2022
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DMZ said:
On the supply, I’m not sure Volvo or Polestar have been as badly affected as the German brands. Someone I know wrote off a brand new Volvo recently and got a new one within a couple of weeks. Mind you, there seems to be plenty of unsold iX’s around too but there are perhaps some fairly obvious reasons why that car isn’t flying off the shelves.

£100k for a car like this does seem a tad pricey but it’s certainly on EV trend by being bigger, heavier, more expensive and with debatable design inside or out.
The vast majority of the iX's for sale appear to be 2021 dealer demo/BMW staff cars with <10k miles (240 out of 259 cars for sale). There are 150 BMW dealers in the UK.

It's certainly a very good example of the issue affecting EV sales though IMHO. The vast majority of new Ev's will be going to company car drivers on 3-4 year deals. Trying to sell a year old example to a private buyer is a lot more challenging when they aren't going to be saving a considerable amount of tax via low BIK and salary sacrifice deals.

NDNDNDND

2,024 posts

184 months

Thursday 10th November 2022
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TheDeuce said:
I'm not suggesting there are villains at play here, it's just the set of circumstances that exist right now. Probably a good thing if it stops households of four casually running 3 cars.
Certainly if that means avoiding the purchase of three electric cars with their massive, embodied carbon footprint.

delta0

2,355 posts

107 months

Thursday 10th November 2022
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NDNDNDND said:
Certainly if that means avoiding the purchase of three electric cars with their massive, embodied carbon footprint.
He says on a thread for a car that is 0g from the factory.

NDNDNDND

2,024 posts

184 months

Thursday 10th November 2022
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delta0 said:
NDNDNDND said:
Certainly if that means avoiding the purchase of three electric cars with their massive, embodied carbon footprint.
He says on a thread for a car that is 0g from the factory.
Yeah, sure it is.

Evanivitch

20,135 posts

123 months

Thursday 10th November 2022
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Did everyone miss the news about global inflation and falling value of sterling?

delta0 said:
NDNDNDND said:
Certainly if that means avoiding the purchase of three electric cars with their massive, embodied carbon footprint.
He says on a thread for a car that is 0g from the factory.
Net emissions, thanks to offsetting. Offsetting isn't a bad thing, but it's badly manipulated by marketing departments.