Now is the time to buy a 'Green' Volvo or in fact any 'Hybrid' or 'Flexifuel' car before the prices go up on 1 July!
Flexifuel Volvos are a big hit on their home turf as the whole of Scandinavia has gone crazy for cars that can run on unleaded petrol, E85 (85% petrol/15% Bio-Ethanol) or a combination of both. In Ireland we have been a little slower than our Viking cousins to embrace the new technology, but it is becoming more 'cool' to own a green car. Hybrids for a few years have been the talk of Hollywood, and Toyota is just one company to see sales rise significantly with its famous Prius hybrid as people globally warm (sorry!) to energy saving vehicles. Sadly, the VRT tax breaks that these cars enjoy are to all but vanish by mid-summer 2008.
The Government has encouraged the development of alternative fuel sources like hybrid power and bio-fuel powered vehicles with a 50% reduction in the application of vehicle registration tax (VRT): so in a nutshell the bigger the car and the more extras fitted the bigger the saving. Volvo hasn't missed a trick by launching two new flexifuel cars to their green range that already includes the C30, S40 and V50.
The S80 saloon and V70 estate are prime examples of wise buys. They are by far the cheapest versions of the posh executive class cars. Both feature a new to the range 2-litre engine that pushes out 145bhp. The four-cylinder engine is up to the job of hauling the large machines about without too much fuss.
E85 is cheaper to buy but also produces less CO2 out the exhaust pipe. Right now E85 is only available at Maxol filling stations but this could change as more flexifuel cars are registered. Bio-Ethanol can be hard on fuel lines, pumps etc and because of this engines that can run E85 feature modified fuel pumps, fuel tanks and a few other bits and pieces that allow the car to happily run on regular petrol or the increasingly popular E85 blend. In reality the tax break is so tempting that many people just buy the car for the retail saving and never put a drop of E85 into the car!
The VRT savings apply to other brands like Toyota, Honda, Lexus, Ford and Saab to name a few who both have flexifuel or hybrid powered cars on sale. Green cars registered from 1 July onwards will only get a modest €2,500 VRT tax break.
Anyway, back to the Volvos, which are both impressive as the asking price for the S80 is just €38,480 and €40,210 for the V70 estate. The cheapest non-flexifuel S80 is €46,950 while the nearest non-flexifuel V70 costs €49,000! Volvo expect to shift around 650 green S80 and V70 in the coming months.
I know quite a few parents on the school run who will be queuing up to get a V70 for 40 grand. Large Volvos have never made so much sense but remember you have to buy and register the vehicle before 1 July.
Michael Sheridan
