Want a free trip to Sweden, including 2 roundtrip tickets and a night at a first class hotel? ALL you need to do is buy a new Volvo. Okay, okay, having to buy a car does kind of stretch the definition of a “free” trip, but if you’re already in the market for a new car, then Volvo Overseas delivery might be a good option.
Volvo overseas delivery
The program is called Volvo overseas delivery, and here’s the basic way that it works:
- You pick out any new Volvo from a local (US) showroom. Typically you will get a “no-haggle” price from your Volvo dealer that is 8% off of MSRP (see also this review of the program at kbb.com)
- You are given 2 roundtrip tickets to Sweden. Since we’re in the miles and points game here, I should point out that I would assume that you would earn miles on the flight 😀
- When you land, you are picked up by a Volvo limosine and taken to a first-class hotel in Gothenburg (as of this writing it’s the Radisson Blu in Gothenburg), as well as picked up (by limo again!) the next day and given a tour of the Volvo Gothenburg Factory Delivery Center in Sweden, where you pick up your new car.
- You’re given European insurance, and can then drive anywhere you want in Europe for up to 6 months. There are 20 dropoff points all around the continent, and if you bring it back to Gothenburg, then you will pay nothing to ship it back
- Volvo ships the car back to the US, where you can pick it up from your local US Volvo dealer in about 8-10 weeks.
Why does Volvo do the Volvo overseas delivery?
So, I’ve heard of new car incentives, but this kind of takes the cake, right? 😀 So why does Volvo do it? My thoughts on the reason involve taxes and shipping. If Volvo is shipping their car from their plant to their showrooms, then they have to pay all the associated taxes, duties and import fees. But if YOU buy the car in Sweden, then it’s YOUR car, and you’re just contracting with Volvo (probably actually not the car company but an affiliate company) to ship YOUR car to YOU, which shouldn’t have any taxes or import fees.
(UPDATE: gfb in the comments suggests that the tax savings is NOT the reason – that in fact it’s more likely the marketing aspect of the program that provides the real benefit to Volvo)
How much less? Well I’m not sure, but one can only assume that it’s enough for Volvo to afford to fly 2 people to Sweden and give you a night in the Radisson, as one would assume Volvo is not a charity :-D.
You do have to be a US citizen at least 18 years old with a valid driver’s license and passport. European citizens (even those living in the US) are not eligible for the Volvo overseas delivery program.
Similar programs from other European automakers
Several other European automakers offer similar programs, but none is as lucrative as the Volvo Overseas Delivery program, as far as I could tell
- Audi Overseas Delivery program – you get 5% off your car, free transportation from the Munich airport and a night at a hotel, but no plane tickets. You also have to pay for your insurance
- BMW European Delivery – 7% off your car (negotiated with the dealer), and discounts on hotel and flights
- Mercedes-Benz European Delivery – 7% discount on your car, 1 night stay at a hotel, and 15 days of car insurance
- Porsche European Delivery – You negotiate the price like a regular sale. 1 night stay at a hotel, and discounts offered on flights.
Is the Volvo Overseas Delivery program worth it?
Well, only you can answer that question. Generally a new car is not considered to be a great investment, but if you’re on the market for a new car anyway, something like this could make sense.
You DO get a 8% discount off the MSRP, so it seemed like you could get a decent deal on selling a “nearly-new” Volvo with only 1000 miles or so once you returned to the US. You might not break even, but considering the other benefits you got while doing the Volvo Overseas Delivery program, it might make sense.
What do you think? Ever done something like Volvo Overseas Delivery program or would you consider it?
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Might be one of the coolest perks for buying car… I could totally buy a Volvo and take a trip to Sweden. Thanks for the awesome find!
If you do it – totally let me know how it goes!
The taxes reason is an urban myth and the math does not work out. Import duty on vehicles is 2.5%. A pair of cheap airline tickets to Sweden could arguably be gotten for $500 each, plus say $150 for the hotel & transfers. The insurance and car registration in Europe is at least $150 ($50 for registration, low estimate of $100 for 6 mo insurance.) This adds up to $1300 on the very low end.
The cheapest Volvo that you can do Euro Delivery on (from what I can tell) is the S60 at ~$33k including the discount. With taxes at 2.5% they are paying $825 total in import duty on that car. The taxes are not high enough for depreciation to make the numbers work.
The current belief amongst Euro Delivery aficionados is that the marketing benefit of these programs is where they are making money, not a tax difference.
sources:
http://www.cbp.gov/trade/basic-import-export/importing-car
https://www.transportstyrelsen.se/en/road/Vehicles/Export-and-temporary-registration1/Temporary-registration/Temporary-registration-when-exporting-new-vehicles/
Awesome! Thanks so much for the long reply and for correcting me on the reason for why they do this. I guess that explains why all the other European automakers aren’t nearly as generous as Volvo!
One more quick tip (I’ve done 3 Euro Deliveries with BMW) is that the Euro Delivery MSRP is not set in stone, it can be negotiated just like a normal car pickup negotiation and you can save a lot of extra money. I have heard that each manufacturer has different leeway on negotiations, possibly based on the number of additional extras they throw in to the program like flights, hotels, etc. You can easily save enough money negotiating below ED MSRP to pay your own flights and hotel 😉
Check out one of the BMW ED forums for more details:
http://www.bimmerfest.com/forums/forumdisplay.php?f=25
I read that the real saving in these programs (for the car company) is that they save a lot on dealer promotions, incentives, and commission costs.
This is has been on my bucket list for many years and I’ve checked into this extensively. Volvo actually has the price listings buried on their website that shows the cost for each package and option. Volvo is one of the best European delivery plans still around. Mercedes used to own this space but Volvo still offers the free flight and extras that the other companies have done away with. One of the best features of the Volvo plan is that you can pick up the car in Sweden and drop it at various ports throughout Europe. You can also select some colors not available in the USA market to make your car really unique and maybe more valuable at resale. Travel in Sweden is very expensive but you also save on the cost of a rental car while your in Europe. With the drop in the Euro this may be the year to do this. If you want a delivery for this Summer though you need to go to the dealer and order now. There is a waiting period and certain delivery dates.
One thing to keep in mind with some of the other companies is that not every model is available for European delivery. For example if you want a BMW X5 that might be tough as they are made in the USA for this market. I guess you could always go pick up your new Mercedes in Alabama but it’s not quite the same experience. It’s also near impossible to buy a non-USA market car like say a Peugeot unless it’s 25 years or older (then it’s easy). Also Asian car companies don’t typically offer this service as there is not VAT tax advantage there like in Europe.
It’s was on a tour of the BMW plant in Spartanburg, SC and asked that question.
ALL of the BMW X-vehicles (x3/x4/x5/x6 SUVs) in their world are built there, then shipped to whatever market they are intended for in Europe, Asia, or the USA.
It is possible to choose an x3, for example at your dealer in the US, specify if for pickup at the factory in Munich (they’ll put it on the boat with rest of the Europe-bound cars), tour Europe, then have it shipped back to the US. In fact, they can even ship it BACK to the Spartanburg plant, where you could go pick it up, take the factory tour, stay overnight at BMWs expense, then have a ‘driving experience’ at their US delivery center.
Just have to allow the extra time for the 2 ocean voyages for the car…….
Incorrect – you cannot do European Deliveries on BMW X1/3/4/5/6 that are built in USA. You can only do ED on BMWs that are built in Germany plants. Same goes for Mercedes – you can only pickup MB cars that are built in Germany.
This is a great idea! I am not really in the market for a new car, but something to put on the back burner if it comes up. Sounds like it would be worth it just for the experience. Anyone who does it should definitely write it up in detail. I can see this as the basis for a European summer adventure. Points for hotels, and your own car as your “rental” throughout Europe.
Slight correction needed. It’s Gothenburg as you point out with the Radisdon Blu hotel not Stockholm. Stockholm is on other side of country. The hotel they provide might be the best location in Gothenburg as a base for visiting the area. Stayed there last year and although quirky it’s well worth the points to stay longer.
No way I woukd make the flight in coach so if you are considering this think about upgrades you will want them.
Thanks for all the posts this past week!
Thanks – I corrected it in one place (from Stockholm to Gothenburg) but missed the other.
Volvo now supplies tickets in Economy Plus on SAS or BA. The hotel they currently use is the Clarion Post in Gothenburg.
OK, so I just came across this old post, and I’m not sure anyone is still interested in more info about this program, but here goes anyway. We bought a Volvo XC90 years ago and took advantage of the Overseas Delivery Program (OSD). We’re now looking at buying again through OSD because of our terrific past experience. The purchase through a local dealer was no hassle, no haggling, and 8% off the cost. On a hot high-demand vehicle (as was when we bought) with dealers offering little or no discount, any cost reduction was appreciated. There also was no destination fee (around $900 savings). A nice benefit is you can build the vehicle to suit your tastes, by adding options that you choose, without the need for the packages sold in the US (altho packages are offered). We also added some options that were not available in the US.
The round trip airfare for 2 was on SAS and included lounge access. The transfers were on time, drivers were gracious, and we were transported in new Volvos. The factory tour was excellent and we enjoyed lunch at the factory. Our vehicle was presented to us, and we drove out and into the Swedish countryside, We also added a 5 day travel package to Barcelona. The Europe trips vary in price, but at the time of this post, a trip to Rome was running $1090 for two people (including a $500 discount). Our trip (and presumably the excursions being offered now) included airfare, all transfers, accommodations, and breakfast; Currently, Volvo is also giving another $1000 off most models for OSD sales.
We’re ready to replace our XC90, and are looking forward to another OSD experience.
RickyLee,
Did you have any luck with your new OSD order?
I just visited two local Volvo dealers and they categorically told me that the 8% discount was “many years ago” and that I can now only order using the european list price which is only very slightly lower than the MSRP in the USA. It is still OK deal if you need to tickets to Sweden but no longer a great one.
If you had better luck with your Volvo dealer I would very much appreciate his contact number or address.
Hi, I am considering an OSD order of Volvo 2017 XC90 hybrid. The price is slightly lower than the MSRP at local dealers. I’m going to ask about the 8% but what I have been hearing from car brokers and dealers is that the Xc90 is in such high demand they are not generally negotiating below about a $2k discount. The great thing about it is you get EXACTLY the features, colors, etc. you want without stuff you don’t need/don’t want to pay for. Curious if anyone else has negotiated a better discount on Volvo OSD. The dealer rep for the OSD program is extremely professional so far and it’s worth it for the free tickets, factory tour, etc. IMO.
Hope that helps.
With this OSD, does the Volvo dealer here in the US allow for a trade in? Thanks for the info
Ricky
Can you let us know if you ended up going the OSD route? Did you get any discount?
Any updates with reference to OSD program lately? Looks very interesting and I would like any fed back. Thanks!
Is it eligible for other countries?
No
Is this offer for Canadians as well ?
Is this offer everywhere? Puerto Rico, maybe?
This sounds freaking great!
I had no idea about these offers, totally worth it to have a trip to Sweden (always wanted to go there), any weird or secret hidden fees that we should be aware of?
The OSD looks really interesting! I just bought so I won’t be looking into getting another for a couple of years but it is something to know. Very useful! Know where I could find some details of anyone who has done this already? Thanks!
I’ve opted for European Delivery! I have tickets to travel to Sweden and tour the factory this Christmas.
Volvo said the reason they are offering this is to promote tourism to Sweden. That isn’t to say the only benefit, but that is the “official dealership” stance.
Interested in Volvo V90 cross country
Question: If we purchase the car (from inside the US) and will be the owners but someone in our family travels to Sweden, picks it up and drives it, do the rules/benefits change? To put it another way, if we buy the car and will be the owners of record, but are not the ones to travel to Sweden, drive it and then have it shipped home, do the same rules apply? Or, does the purchaser/owner have to be the same one who travels to Sweden and drives the new car?
I just met a guy at a body shop who did this. He was thrilled with the offer and enjoyed Europe! Sadly, three days after the car arrived in the US someone rear-ended him, thus why I ran into him at a body shop. Good news, the Volvo withstood the impact quite well, the guy who hit him though? His car was totaled! Wish I could post a picture of it! It was unbelievable! Volvo’s are incredibly safe vehicles. This gentlemen I met made a believer out of me. Think I’ll need to get my kids through college first though. Hopefully they sill offer the plan when I’m ready to buy…and fly!
I would like to get more information on your program. I am based in South Africa. Where does it leave me. Is there a program activated in South Africa with the same benefits mentioned in the US program.
I did the Overseas Delivery on an XC60 and was impressed how Volvo handled all the logistics of the trip, Air, Hotel, Meals and a driver to take you from and to the Airport and to the Factory. You get the car well below what you could at a dealership and get to enjoy it while in Sweden with insurance provided for up to 15 days. No tricks, no hidden fees, it was all good and beyond my expectations
Does this program exist in 2023?
I don’t have any first-hand knowledge of the program, but a quick Google search makes it seem that it does
https://tourist.volvoprograms.com/