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Volvo XC70 Lease Questions

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  • I think this may be an ok lease deal, but compared to the deal I got on my acura MDX a year ago it sort of sux. I guess RV's are way up now, with the credit crunch. Anyway, I want to get a new 2009 XC70 with most of the bells and whistles, no turbo. We are on the A plan, and the invoice is roughly 42.5K. There is an invoice rebate of over 5K, and our trade in value is 6K, plus they are giving us 2K loyalty incentive on the trade in (2004 S60). I know that sounds like a helluva lot of incentives.
    The RV is 19k. I don't know the money factor. There were a couple of more incentive thrown in.
    --Overall the price was $36,450 after incentives, not including the trade in.
    --The trade in went to fees and up front costs plus first month payment, a total of $1500, and the rest toward reducing the monthly payments.
    --The monthly fee ends up at 496.68 including tax.

    Is this an ok deal? I ask because my 46K acura with a 6K trade in and no other incentives costs me $515/month, way less. I don't remember the #'s, but I suspect the RV was much higher. Are the lease prices actually higher now, because of the credit situation?

    Thanks
    SR
  • Have you test driven the turbo and compared it to the base? I strongly suggest you give it a go, the base is way underpowered and you are just not going to be happy with the performance.

    As for the deal, I am no expert but I always thought that incentives were just "flash" to get you in. Basically, you have to ask them what is the lowest they can do for you given every factor. After that, go to another dealer and see whats "their best." Of course, I recommend doing this all via email (maybe a call).

    Anyway, the residuals have come down which means that you pay more. Also, I don't think you are getting a fantastic interest rate but you can find that out for yourself.

    The other thing is not to tie yourself down to one car, I like my Volvo but for example the Mazda cx-9 is rated better on many levels and without any incentives their price beats what you are quoting for the XC70. They need you, you dont need them, I think you can shave some more off. Whats the worse that can happen, you go back and they give you the same deal.

    Again, this is just my opinion, whatever decision you make will be the right one for you.
  • Does anyone have December lease numbers..residual and MF for the XC70?
  • Hi archielevick. Volvo Finance's lease program for the XC70 varies by term and mileage allowance. You never mentioned what either of these variables are, so 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 a 2009 Volvo XC70 through Volvo Finance for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value would be .00204 and 48%, respectively.

    When negotiating your lease on this vehicle, make sure to take the $750 holiday bonus cash that Volvo is providing on it into account.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • Hi Car Man:

    Would you be able to post lease numbers for the XC90 over on that message board? I'm interested in either a 2008 or 2009 XC90, either 12k or 15k mi/yr for 36 or 39 months. I know there's a Costco incentive currently but I'm wondering if there are larger incentives for third party leases vs Volvo Finance. Thanks!
  • dpeck1dpeck1 Posts: 51
    Looking to lease an xc70 T6 with back-up camera and trailer hitch. What are the current customer incentives and dealer cash and holdback? Carman, do you know the current residual and money factor? The MSRP is 46K ? Thanks.
  • I´ve owned this car for 14 months and my recommendation is stay away from it. See consumers reports, reliability is horrible. Everyday is a different thing, wait a couple years until Volvo puts things together if they do not go out of business before.
    I like the car inside out but it has so many electronic, ratles and transmision issues that unless you are a masochist there is no reason to get this car, plus the resale value is as bad as Chrysler or Ford.
    I have a lease and I can't wait to return the car and get something more reliable.
  • dpeck1dpeck1 Posts: 51
    What year did you lease? What engine did you get, 3.2 or T6?
  • This is a 2008, 3.2. I have 10 more months and I will get something more reliable. Look for something different. Good luck.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dpeck1. Volvo recently enhanced its dealer cash incentive on the 2009 XC70 to $2,000. Its lease program varies by term and mileage allowance. You never mentioned what either of these variables are, so 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.

    Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 Volvo XC70 T6 with 15,000 miles per year are an unattractive .00347 and 48%, respectively. Its money factor for the '09 XC70 3.2 are a slightly more attractive .00242, but its residual value is lower at 44% and its lease cash is only $1,553.

    This lease program is scheduled to run through the end of March, but it would not surprise me in the least if Volvo was to make an unscheduled revision to it.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • Hi dpeck1, even if Volvo is giving a cash incentive of $2000, I would not get the car, they are depreciating the resale value more and more so the used cars are going to be worthless like most of the american brands. As much as you discount a car as worthless it is. If I were you I would be looking at Acura, Infiniti, Lexus, or BMW. You can get great deals in terms of financing and leasings and they retain their value better plus you would not spend much time in the dealer.
  • dpeck1dpeck1 Posts: 51
    Do you know what the April numbers are, incentives and MF. reside, etc?? yes, 15K, 36 months.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I sure do, dpeck1. Unfortunately, Volvo is not currently providing any lease support on the 2009 XC70. You definitely don't want to lease one through Volvo Finance right now, its lease money factors are around .00500, which is equivalent to an interest rate of around 12% :surprise: .

    You can lease one through an independent bank and take advantage of the $5,500 dealer cash and $1,500 cash incentive for leases through anyone other than Volvo Finance if you want though.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • shs111shs111 Posts: 39
    I've got a 2004 XC70 which is starting to run up some pretty sizeable service bills. I'm thinking about getting a 2009, I know it's not the best car out there but I just happen to like the dealer, the service, the car itself (previously also had a 1998 V70). I find that I tend to keep a car between 5 and 6 years, and have always purchased, not leased. I put somewhere between 12K and 14K annually on the car. What would you recommend: purchase or lease?

    Many thanks.
  • I have a 2008 and I've wasted too much time at the dealer, the dealer people are nice, no question about it, but I cannot be there every other week, my recommendation is stay away from this car for a couple years until they can improve it, see reliability at consumerreports or even the editors score at edmunds, they failed pretty badly with this model. I am like you, I like the car inside and out but too many problems that are not worth the money, evn when they are giving almost $7500 rebate away, that should tell you that they are not selling this car, not just becuase the recession but because people are realizing that is not worth the headache. I can wait to december 24th to return mine and be free again.
    Good luck with your decission, if you want a list of all the problems I´ve had I will be more than happy to give it to you.
  • shs111shs111 Posts: 39
    Many thanks for the reply, Luisaja. This surely reinforces my thoughts about leasing rather than purchasing. I'm actually starting to think about the XC60 instead, although obviously the car is too new for us to know about reliability.
  • jaa37jaa37jaa37jaa37 Posts: 18
    Hi Car_man (and others) -- anyone know what the money factor and residual, etc., would be for a two-year, 12,000-a-year lease would be on XC70s? Any cash back deals?
    We have a 2007 lease that is ending soon, and we're trying to decide whether to extend the lease for a few months, get a new lease or try a different model.
    Anyone have any advice on extending a lease?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello jaa37jaa37. I don't believe that Volvo is currently providing any lease support on the 2009 XC70 through Volvo Finance. If you really want to lease one, you would be better off doing so through an independent bank than through Volvo Finance. Volvo is currently providing a $1,750 cash incentive on leases of XC70 3.2s through independent banks.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • luisja2000luisja2000 Posts: 14
    If I were you I would not even consider to get a Volvo, read my postings from before the 2008 XC70 is just a pool of problems, I get something new every other week and of course Volvo US or the dealership could care less. I imagine their sales are down so badly due to quality and reliability issues that they have to put the 5 year Complimentary Maintenance Program but unless you are willing to go to the shop every other week and suffer your car experience throughout your lease term I would not purchase a Volvo. Check Consumer reports or Edmunds and you will see what I am talking about.
  • red35red35 Posts: 1
    We are completely frustrated... I am trying to negotiate a lease with the local dealer and feel like I am getting the "run-around" I can not seem to get the lease numbers written down on paper from them - what it looks like I am getting is:
    XC60 T6
    MSRP $38200
    Money Factor .00225 (is this good? I have Excellent credit)
    Local tax 8.75%
    Residual $13000 (this seems low to me)
    $1861 down payment
    monthly payment of $532
    48 month lease
    going through USB Leasing

    I am happy to try to work with them but feel like I am not getting a "fair" deal...

    There has been some double talk about USB "Buying down" the MSRP by $6000 - can you tell me what this might mean...

    I have had two leases back to back with Volvo and have never had any issues in the past... same dealer...

    I appreciate any help you can give -
  • I am leasing a 2007 XC70 and the lease is up in about 9 months. I now need to replace all 4 tires and have heard a lot of great reviews from XC70 owners on Nokian tires. All of these owners have upgraded the size from OEM 215/65/16 to 235/60/16.

    Should I worry about paying a penalty when I return the car if the tire size is different from OEM?
  • Hi meteop34. It wouldn't hurt to check with the bank that you are leasing through to make certain, but generally speaking most banks don't care of a vehicle has different tires on it than the ones that it originally came with...as long as all four new tires match.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • My parents have a 2007 XC70, and they're finishing a 30-month lease in Feb. The residual is $21,500. The car is in very good shape, and while I don't know the exact mileage right now, I'm certain it's under 20,000. Any idea whether I can expect the dealer to offer me a better deal on the residual? I read that dealer auction prices are pretty low right now.
  • I'm in the exact same situation....finishing a lease on a low mile 2007 XC70. I spoke with the bank (Wells Fargo) several times and they will not lower the residual (mine is $18,000). The car will easily sell for $22K or more so they have no incentive to make deals.
  • I just bought mine for $18,700 and tried to get the bank to go lower but they would not. Mine also only had 26,000 miles on it and I found nothing out there (including the new XC70) that was any better at that price. I also like the car and have a big dog that won't fit in most other stationwagons.

    I think you can probably sell the car for around $22,000 (my refinance bank said it was worth) so $21,500 might be pushing it. If they need a wagon, I would look at Subaru Outback (to buy) or Passat if they just want to lease. At 21,500, their monthly payments wont be that different and they wont need to fix up the 3 year old car.
  • Thanks for the responses. Sounds like the $21,500 is a pretty decent price. If they decide not to keep it, it will probably be because they've decided to get a hybrid -- they don't *need* a wagon anymore, but I think they like the flexibility of having all that space when they want it.
    I suppose there's no harm in trying to negotiate a better price...
  • I am looking for info on what the percentage residual is on 24, 36, 48 month lease.
  • noa7noa7 Posts: 1
    just starting the process. xc70 w/ premium, convenience, climate, pcc + blis. msrp is $48,500. cap cost is $40, 500. (that's with the $6000. allowance). 48 mo lease, 10, 000 miles - $3000. down and the payments are $587. is this deal good or bad? where do i go from here? do i push to get the cap cost lower? i don't mind putting some money down, but i'd like lower payments.
  • Hi Noa7,

    Of course everyone has to choose the deal that works for them. However, in my opinion, that is a terrible deal (see leasing info on edmunds.com as a backgrounder as well). I am the proud owner of a 2007 XC 70 (premium, Xenon) which I originally leased and then opted to buy. I also LOVE Volvos.

    However, I am unlikely to lease another XC 70. Volvo and their lending partner USA bank do not offer good interest (money factor) rates and frankly speaking, the new XC 70 is not worth the asking price when you compare it to other cars out there (BMW, Audi, VW, and Subaru).

    If you really have your heart set on this car, it seems that buying it will cost you about the same. Also, never put a lot of money down on a lease (see edmunds for reason). If you are a Costco member, you should get another $1000 off the price. See edmunds true value for a good price but I wouldn't pay more that the low 30's for a new XC 70, Volvo is way over charging. If they dont come down, then simply look at some of the other wagons out there. Although it doesnt have the name, the Subaru Outback (V6), is a great alternative if you need a big wagon.

    Anyway, this is just my opinion, but I wanted to help you out with my thought, hope it helps.
  • The lease (thru US Bank) on my 2007 XC70 expires on 10/31/10. Car is "clean" except tires should probably be replaced within the next 3-6 months. 34,500 miles. Option to purchase vehicle is $15,203 + tax. Interest rate to purchase car thru US Bank is 5.1% (3.66% thru my own bank). Understand I can also purchase the car thru the dealership (Volvo Oak Park IL) and get an extended warranty, etc. but I don't have those numbers yet.

    Have leased all of my cars over the last 20+years. This is the first time I'm considering exercising the buy option and keeping it. Also wondering if I should buy it and then trade it in on something else... Or just return it ($395 return fee) and lease again....

    Goal is to keep my monthly payment as low as possible....Have been paying $453/month (48 mo lease) and would like to lower that amount.

    Any advice would be greatly appreciated....venturing into unknown territory here and it's all pretty overwhelming. THanks.
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