IT IS very difficult setting residual values when brands launch new cars into sectors in which they haven’t recently competed.

Especially when the car is radical, like the new Volvo C30. It competes against the Audi A3 and BMW 1-series and Volvo wants to attract younger buyers to the brand but setting RVs for three years’ time is a tough proposition: will it take off with new and used buyers?

Only time will tell, but CAP’s view is that it will perform above the Volkswagen Golf, but below the Audi A3, reflecting Volvo’s position in the overall brand hierarchy.

Audi A3 2.0 TDi 140 Sport
Price new £19,932

Mileage		Age (months)		Predicted value		Money lost
20,000		12		£13,400/67%		£6,532
30,000		18		£11,825/59%		£8,107
40,000		24		£10,450/52%		£9,482
50,000		30		£9,225/46%		£10,707
60,000		36		£8,275/42%		£11,657

Source: CAP Motor Research

Volvo C30 2.0D SE
Price new £19,122

Mileage		Age (months)		Predicted value		Money lost
20,000		12		£11,000/58%		£8,122
30,000		18		£9,800/51%		£9,322
40,000		24		£8,750/46%		£10,372
50,000		30		£7,800/41%		£11.322
60,000		36		£6,975/36%		£12,147

Source: CAP Motor Research