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2013 and earlier Volvo XC90 Lease Questions

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Comments

  • Car Man,
    I am purchasing a car for the first time without my dad...on my own so I am afraid I may be taken advantage of since I am a woman. Is the following a good deal?

    2006 XC90 2.5 AWD, metallic paint, leather, Premium Package, Versatility Package and Convenience Package for $38,000 (the MSRP was $44,535).

    Should I go for it? By the way I am in Boston.
  • britsbrits Posts: 3
    I have a S-80 coming of lease and have been offered the following on a 2006 XC 90 2.5T. The vehicle has premium and versatility package and is stickered at $41,908. They are going to sell me the car for $36,021. They also told me if I lease it with Chase they have some tax credits for me. Only first payment out of pocket for 36months 15k a year $576 a month including all taxes. Does this sound like a fair deal. I am only paying $517 a month on my S-80 and was close to the same price. Credit score is 820.

    Thanks in Advance
    Mike
  • jabberjabber Posts: 56
    Carman or anyone else,

    I've been told by a Volvo dealership that on a 2006 2.5T AWD:

    36 months
    Residual = 56%
    MF = .0023

    The residual seems low and the MF high...can anyone confirm this?

    Also, the salesman told me I would have to pay $877 in gap insurance. I've been leasing for a long time and have never paid for gap insurance, it's always been included as part of the terms of the closed end lease contract. Can you confirm whether this is a disingenious attempt to pad the dealer's profit.

    All that aside, the price seems to be okay at $3K under invoice.
  • In N. CA, 2006 XC90 2.5T AWD, MSRP $44,500? including Dest, selling $38,958, prem, vesa, climt, 48mo, 15,000K, 45%, 0.00198, $500 out of pocket and $528/mo. + Tax.

    We didn't think it was the bottom line but thanks to this site we knew it couldn't be bad. Mentioned Costco memebership the dealer (Winter Volvo in Sacto.) showed the invoice and their bottom line on the first try. All matched what we learned from here.

    Our lease contracts in the past never mentioned gap insurance, and we were told by our insurance it is only useful for the first year.
  • jabberjabber Posts: 56
    Okay, I finalized this deal on new year's eve and believe it's more than fair (I hope - feedback would be appreciated).

    Premium Package
    Climate Package
    AWD
    Dual Screen Rear-Seat Entertainment

    36 Months, 15K miles/yr
    MSRP $44,250
    Selling Price $37,296 (about $3740 under invoice)
    MF: .0019 (Wells Fargo Platinum - FICO>745)
    Residual: 55% although they residualized $850 worth of package discounts making the effective residual almost 56%
    Rolled into lease NJ taxes, MV fees, Doc Fee, and $795 Acquisition fee.

    $530 due at signing (first month's payment)
    $530/month

    I will also apply for $500 rebate through AAA mid-atlantic volvo program, basically making my first monthly payment $30.
  • Best lease deal I have seen so far jabber, congrats! I made a mistake, our MSRP was $43,550. We opted for the third seat instead of DVDs. Our selling price was $38,300 plus $495 acquisition fee. We did get two season ski passes worth $700.

    I was told with AWD no chain is required in the snow, we'll see.
  • BTW jabber, can you give me some details on the AAA-Volvo rebate program? Is there a number to call for more info? Thanks
  • jabberjabber Posts: 56
    Volvo has affinity programs with various associations (AAA, Volvo Club of America, Bar Associations, Credit Unions, Trade Associations, etc).

    Go to www.volvoprogram.com

    Each association has it's own code that you'll need to register and obtain a form to file to get the rebate. As far as AAA is concerned, you need to be a member of a specific regional club that is part of the program. The code for AAA Mid-Atlantic is CDLFfc3. ** You have to have been a member of the association for at least 6 months prior to your purchase in order to qualify. **
  • Thank you so much jabber, I entered the site with the code you gave me, it returned with California State Automobile Association (I am a long-time CSAA member) rebate program, and the expiration is 01/03/06. I called the number and was told since I purchased the Volvo before 01/03/06, I should qualify.

    I am mailing in my rebate request and see what will happen. Again thank you for the headsup.

    BTW, before I tried your code, I called every organization I could think of, from Volvo, AAA to dealers, no one had a clue. Out of desperation, I decided to try your code and CSAA popped out right in front of me. So I wouldn't believe it until the check is in my hand.
  • jabberjabber Posts: 56
    jacmyoung2, that's interesting. Perhaps that's the general AAA code and then based on your zip code it determines which club you belong to. I'm sure you'll get the check - congratulations. You can send my finder's fee to my paypal account! ;-). Enjoy your XC90.
  • The terms and conditions seem to indicate as long as you are a US resident and a AAA member, bought the Volvo at a US dealer of your choice before 01/02/06, you qualify for the rebate, though the form header is CSAA so they could limit the recepient to CSAA members and the 6-month membership. You have 60 days from the date of purchase/lease to claim the rebate.
  • ursusursus Posts: 48
    Does 59% residual/MF .00307/10K miles through Volvo Finance or 54% residual/MF .0028/12K miles through Chase sound right? Dealer told me there is $3,000 cash back from Chase. The residual seems to be low and MF is definetely high. On my current XC70 residual was 59% (in 2003) for 36 month lease and MF was around .0016. Should I wait for 2007 model and get a better deal? Will the residual be higher on 2007 model if leased in the fall? I will be going with the X-plan, but still want more off the invoice. There are no incentives available now. Are there?

    Thanks.
  • Anyone know the current money factor and residual value on a 2006 Volvo XC90 V8 AWD in MI? Thanks.
  • cooperdcooperd Posts: 1
    I am in early negotiating stages with a dealer and have been offered the following numbers below. I was wondering if these numbers look good about right? In particular, I am wondering what if any areas I could likely get them to come down on, i.e. money factor, residual, etc.? Thank you in advance for your advice.

    2006 XC90 2.5L Black exterior and taupe leather interior with the premium and versatility packages.

    -$482 plus tax for 36 mths 15000 a year.
    -$1000 total out of pocket( not down total ):
    The $1000 due at signing is for first payment, which includes 1st month , tags, state and local fees, tire battery and lemon law. (Came to $1,200 but came down to $1,000.)
    -The residual is 51% or $21675;
    -The $$$ factor is .00201.
  • pfxcpfxc Posts: 2
    CarMan,
    Is this a good lease?

    2006 XC90
    AWD, Prem, 3rd row seats, Nav, vers pkg, wood steer wheel
    36/12K yr.
    Sticker $42,650
    $39,850 cap cost
    $4000 trade in value
    $0 other down
    $1000 DOD
    US Bank .0019 MF
    Residual 51%

    Thanks in advance.
  • pfxcpfxc Posts: 2
    CarMan,
    Is this a good lease?

    2006 XC90
    AWD, Prem, 3rd row seats, Nav, vers pkg, wood steer wheel
    36/12K yr.
    Sticker $42,650
    $39,850 cap cost
    $4000 trade in value
    $0 other down
    $1000 DOD
    US Bank .0023 MF
    Residual 52%

    $473.00 + tax

    Thanks in advance.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi sestesod. This vehicle's lease money factor and residual value vary depending upon how long you lease it for and how many miles per year you are allowed to drive it. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year, let me know if you want something different. According to the latest information that I have seen, if you were to lease an '06 Volvo XC90 V8 AWD through Volvo Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00309 and 59%, respectively.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi cooperd. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion on this lease if you let me know what these numbers are.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi pfxc. I believe that the XC90 that you described in your post has a spread of a little over $3,400 between its full MSRP and dealer invoice price. Volvo is currently providing $3,000 dealer cash on '06 XC90 AWD 5-Passenger and $3,500 on '06 XC90 7-Passenger models that are leased through independent banks, like the one that you mentioned. This gives a total profit margin of around $6,500 to $7,000 on this vehicle right now. You are only being given a discount of $2,800. As you can see, I think that you still have some room left to negotiate.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • jcat707jcat707 Posts: 168
    I remember sometime last time year Volvo was pushing leases through U.S. Bank. Now I see they are supporting leases through independent banks. Is there any reason why Volvo doesn't like to finance XC90s?
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