We have a ballon note with a buy back option where we can get Volvo Finance to buy to car for the ballon balance less $250 and (of course) less charges for excess wear (whatever that may mean). Anyhow, we are trying to decide whether to keep it or not.

We bought the car new 3/98 and have put 45k miles on it. Car is in good condition. No wrecks or anything like that. It has a few dings and other normal stuff (you know like curb rash and scraping the front lip). While we haven't had any major mechanical problems, we have had several small ones that make us wonder whether it will be reliable in the long run. (For instance, we kept smelling a burning smell from the driver side. Turned out something in the window switch was burning. It was replaced under warranty and the smell has not returned. That kind of stuff makes me wonder what's next.)

From a purely financial standpoint, we are concerned that the car is worth less than the ballon balance. Our balloon is around $18k after deducting the $250 disposition fee. By the way, if we keep it we simply continue paying the same payment at the same interest rate (6.79%) until its paid in full.

Any thoughts on what its worth? I've checked Edmunds and Kelly Blue Book, and after talking to dealers about trade-in those sources seem highly optimistic.

Thanks for the advice.

Michael

I have a '98 S70 GLT. Great car, it has 53k miles. My lease buyout is 19250.00 the car is begining to rattle inside and outside. I take great care of the car it still looks brand new. The roads in NYC are the worst I've ever seen. I would pay about the same montly pmts. if I keep the car. This is how I see it:

THE CAR HAS NO WARRANTY.

I WILL BE PAYING 425+ FOR A USED CAR WITH NO WARRANTY FOR FIVE YEARS.

I OWE 2100.00 IN EXCESS MILEAGE, IF I KEEP IT I WONT HAVE TO PAY IT.

IF I KEEP IT AND SOMETHING LIKE THE TURBOCHARGER OR THE ABS UNIT GOES BAD I WOULD BE PAYING CLOSE TO A FEW THOUSAND DOLLARS.

MAYBE NOTHING WILL GO THAT BAD FOR THE NEXT FIVE YEARS. SHOULD I GAMBLE?

I CAN PROBLABY LEASE A NEW ONE FOR THE SAME MONTHLY PAYMENTS. ONLY PROBLEM I WONT' OWN IT.

THE RATTLES ARE DRIVING ME INSANE. DASHBOARD RATTLES, SUNROOF RATTLES, EVEN THE PLASTIC UNDER THE FENDERS AND UNDER THE ENGINE RATTLES. MAYBE THAT CAN ALL BE FIXED WITH MINOR EXPENSES. THE RATTLES COULDN'T BE REPAIRED BY VOLVO WHEN THE CAR WAS UNDER WARRANTY.

IF YOU DON'T HAVE ANY OF THOSE PROBLEMS I WOULD SAY KEEP IT. THE CAR IS SAFE, RUNS GREAT, LOOKS GOOD PLUS IT MAY LAST YOU LONGER THAN ANY OTHER CAR YOU CAN OWN.

Good luck with your car.

If you have a lease with Volvo Finance, I understand that they may work with you on the price of the car. We have balloon financing with a buy back option. Per VF they can't work on the price in that instance.

First off, I have to admit that I'm a bit biased to the S70. But as far as reliability is concerned, anyone who doesn't break 100,000 or a whole lot more with one of those cars isnt taking proper care of it. I have had my 98 since 12/97 and since then I have put just short of 110,000 miles on it. Just recently I brought it into a dealer to have the engine thuroughly checked out (bad gas in michigan made my mileage drop so I thought something was wrong). The guy who did the work found the following: all cylinders were no less than five psi over the minimum compression spec and two were still at the max, fuel pressure was normal, no lack of power was observed during a test drive, etc., etc., etc. Basically from an engine standpoint the car is in brand new condition. As for the rest of the car, I have refused to let any little problem slide and so far the biggest problem I've had was a few worn brake rotors. My point is this, like any other car, maintenance is key and without it the car wont be reliable or last. However, with proper care that thing will last you years and get you thousands more miles without problem. If you like it and like the way it drives I would say keep it.

I have a 94 turbo wagon with 76k, and NADA puts it at over 13k trade in, and almost 16k average retail. Most of the 94's I se in Chicago run between 14-17k. Seems to me that yours would be worth more, try checking NADA.com, and check with Edmunds.com as well. Autotrader.com should be able to help you with looking at what the local values are in your area as well. Good luck.

The book values for trade-in are between high $16k and mid $17k. Actual trade-in value is much less. I would guess we could sell it for between $16k and 18k, which would leave us upside down. I would guess actual trade-in would be between $13k and $15k.

$18k for a nice car that we know the history is a whole lot less than what we would spend on a new car. On the other hand, we could have a new car for the same/similar monthly payments, but no/little maintenance expense - just longer payments.

If we decide to keep ours, we are considering an extended warranty. Any thoughts?

Your values seem right on. There is one in my area for sale for $17k but it has 75k miles.