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2013 and earlier Volvo XC90 Lease Questions

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  • Dealer here in southern california told me today that they extended the program through August. I'm going in today to see what they have to offer.
  • onconc Posts: 26
    Volvo Center, San Antonio, Texas.
  • I finally setteled on my deal...
    39 months @ $559.63/month $787 upfront, which is first payment and doc fee. I think the doc fee is just another way for the dealer to get a couple hundred bucks - but I can't verify that, useless someone knows if US bank charged them a doc fee? What I would really like to know is if you get an extra 3000 miles for the 39 month lease or is it capped at 36,000?
  • crestonavecrestonave Posts: 219
    A while ago a Volvo dealer told me that the price for extra miles was the same whether you paid for them up front or turned the car in over the 36K. Ask you dealer what the cost is both ways.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi naut_online. A 39 month lease would allow 39,000 miles (12,000 per year).

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • rcohenrcohen Posts: 1
    do you like the 2010 volvo xc90 or the 2009 acura mdx looking to lease now
  • got a (canned) email from a volvo dealer today that says that "safe and sound" is still on and that it also applies to 2010 models.
  • Edmunds shows starting 9/1/09 the loyalty cash is $1500 and Marketing Support is $1500.

    Just spoke to a salesman today, he said starting 9/1 the alternative lease support is only $3000 now for XC90 3.2AWD, down from $5000 before, does anyone know if that's true?

    Also, does anyone know the lease terms available from US Bank? Looking for residuals (%) and money factors for 36 or 48 month lease (or closest to), 12k/year. Bank fee charged by US Bank?

    Thanks very much for any answers!
  • Given the horrible August sales numbers just released by some manufacturers, especially considering the boost that "cash for clunkers" was supposed to give, I am amazed that they would reduce incentives. I would think they would increase them, if anything. I would like to lease an XC90 but I refuse to do it at current prices.
  • totally agreed, and I'd assume tougher for Volvo which (given its poor fuel efficiency) was never the targeted beneficiary of the clunkers program...

    But keep in mind this was a salesguy speaking, that's why I'm looking for independent verification here by Car_Man or anyone else who might know...
  • Need some help quickly as I need to get another car this week, our 2007 lease is ending sooner than I thought...

    Does anyone know what the current Volvo or US Bank lease numbers are (residual value %, money factors, 12k/year, 36/39/48 mos)?

    Are they different for 2010 vs 2009 models? I would presume so, since in 3 or 4 years all else equal the 2010 model will be worth more than 2009 model...

    Also, what Alternative lease support is Volvo offering for 2010 and 2009 models? Edmunds shows $4000 for 2010 but nothing for 2009, could that be right?

    Thanks very much!
  • volvomaxvolvomax Posts: 5,274
    XC90 inventory is very very low right now. No need for big incentives when you don't have many cars to move.
  • Thanks volvomax. If you know them, would you mind sharing the US Bank residuals and money factors for 36 and 48 mo leases? 800 credit score, existing Volvo customer.

    XC90 3.2 AWD Prem/Vers/Climate, for Northern California

    for 2009 (and 2010 if you have them!)

    Thank you sir.
  • Here's the latest info for 2009 model year (2010 in parentheses):

    Volvo Incentives:
    Volvo Loyalty Cash 1500 (1500)
    Alt Lease Support 3000 (4000)
    Marketing Support 1500 (500)
    TOTAL 6000 (6000)

    US Bank Lease Terms for 2009 model year:
    36 mos/12k mi per year - 41% residual value, .00212 money factor
    36 mos/15k mi per year - 39% residual value, .00212 money factor
    48 mos/12k mi per year - 32% residual value, .00207 money factor
    48 mos/15k mi per year - 30% residual value, .00207 money factor

    US Bank Lease Terms for 2010 model year:
    Add 1% to 2009 RVs, same mf's

    Took me a couple days, hope this saves others some time.
  • zamozamo Posts: 120
    Wow, those residuals are horrible. Better to buy a CPO instead
  • Not really, if you're comparing leasing new vs CPO, the money factors, residuals and monthly payments on a CPO would be much worse, so the CPO payments would likely be higher than new car payments. Plus there's far less transparency/uniformity with used cars so dealers have better chances of ripping off customers than with new.

    Independent banks don't like to finance leases for cars that would be 5-8 years old when they come off lease, there's too much back-end risk on residual values so they whack em down low in used car leases.

    Plus, you don't get the 5-year safe+sound maintenance-free coverage from new...

    All in all, you're way better off leasing new than CPO.

    And don't let any used car salesman convince you otherwise. If they do, post your deal terms on this board first before pulling the trigger and we'll give you some honest feedback...
  • zamozamo Posts: 120
    I said buy a CPO.

    With those horrible residuals you can hint that used XC90s are going for cheap and with 6 year/100K mile warranty: http://tinyurl.com/n4tfos

    You get a 4 year loan from chase @ 5.31%: http://tinyurl.com/oxyumh

    Your payments are $601.26 with $0 down.

    It makes more sense to buy a CPO rather than to lease a new one; after 4 years you still got equity with the former.

    I do the math all the time; just got a new Subaru Legacy 2.5i SE for $244 + tax with $0 due at signing (not even tag or tax). 36 months lease/12K miles a year.
  • Sorry I missed your point about buying CPO. However, a used CPO car isn't the same as a brand new car so its hard to compare, but lets try to break down the differences between leasing new (2009) vs. buying CPO (2007) over 4 years:

    First, you'll spend more on maintenance on a CPO (assume $500-$1000/year?) x 4 years = $2000-$4000. I spent $1500 on tires alone for the first 2 years of our current 2007 XC90 lease, and maintenance is sure to be higher in years 2-6 than 0-2.

    Second, your payment ignores sales tax at $601. Including sales tax (9.25% here in California) and using Chase's 5.61% interest rate for California the payment would be $661. This is roughly $98 more per month than the $563/mo lease available on a brand new car (7 passenger AWD), x 48 mos = $4700

    Third, to "equalize" the options lacking from the car you've identified, the 7-passenger rear seats were a $2500 option but lets say you can somehow find and install the rear seats for $1250, and install bluetooth for $400.

    So, at the end of 4 years in 2013 you've paid off your 2007 CPO car and own it outright, but the difference in cost of ownership ranges from $8,350-$10,350. Will the "equity" in your 2007 model be worth more than $8,350-$10,350 in 2013 (as a 6-7 year old car)? The residual value for the above 2009 lease (AWD 7) in 2013 is $12,397, so $8,350-$10,350 for a 2007 model with higher miles doesnt seem that far off, plus as a CPO owner you take maintenance and RV risk.

    If the lease RV is below-market at lease-end the lessee can buy the car and capture any upside. Conversely, if the the RV is above-market at lease-end the lessee doesn't suffer any losses, whereas an owner will suffer the loss. The future market value risk is borne by the bank and the CPO purchaser.

    Do you look at this any differently? If so, I'd be curious to understand your analysis and how you conclude that buying CPO is better.

    The Subaru deal sounds pretty good.
  • zamozamo Posts: 120
    For apple to apple comparisons, I do not include sales tax. I also metioned $0 down; not sure if the lease deal has the same term.

    The cost of ownership really depends on what type of maintenance I choose. The local mainekee can perform the basic tire rotation and oil changes inexpensively.

    Based on these examples were are at a point where a CPO buy and a new lease might cost the same after 48 months. The leased car goes away whereas the CPO is being kept. 2 more years with no car payments makes it a win-win situation.

    Before, when the XC90 was a $429/month deal for 24 months, it was a NO-brainer. I do have a 2008 XC90 with all options but Navi. 24 month lease of course.
  • fantomfantom Posts: 211
    My 2009 XC-90 two year lease is running out in several months. The residual on it is about $31K. I've heard stories about Volvo Financial knocking as much as $10K off the residual for a buyout.

    Is this possible, a reality, anyone with any knowledge?

    Would seem to make some sense given the deals on a new XC-90, and the very depressed value of used ones. If this is not fact, we're in the market again......
  • volvomaxvolvomax Posts: 5,274
    VFNA isn't knocking $10k off XC90's. Maybe last year,but not this year.
    XC90 prices are going up at the auctions.
    $31k is about right for an 09 if its a 6 cyl.
  • fantomfantom Posts: 211
    It's an '08 AWD, with about 18,000 miles.

    Is VFNA knocking anything off?

    Add a couple of grand to the residual, and we can purchase a new XC-60.
  • How'd you get an 09 two years ago?
  • volvomaxvolvomax Posts: 5,274
    For an 08 AWD, wholesale is @ $28,000
    So, probably not much relief there.
  • Does anyone have #'s for a new XC90 ? I have a 2008 coming up in December.

    Looking for V6, AWD, climate and 3rd row.
    Lowest miles per year

    Thanks
  • Hi goucla. What you were told by the dealer is correct. Volvo is only providing $3,000 on leases of '09 XC90 3.2 models through independent banks in September.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hey goucla. It does not appear as though Volvo is running a special lease program on the XC90 through Volvo Finance this month. If you really want to lease this car, you probably would be best off doing so through US Bank and taking advantage of the additional $3,000 cash incentive that Volvo is providing on leases of the '09 XC90 3.2 and $4,000 on leases of the '10 through independent banks. Unfortunately, I have not seen the US Bank lease program so I don't know what the specifics of it are.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • I went over to the San Diego Volvo dealership today to check out the '10 XC90. Here is the lease deal they gave me. Thoughts?

    Invoice Price - 37560 + 350 = 37910
    VA - 500
    ALA - 4000 (from US Bank)
    So the price was 33410.

    The Residual was 9988 on a 5 yr/60000 car with drive cost of 7500 and 455/mo w/ taxes.

    Is this a good deal?
  • kinngkinng Posts: 6
    Hi all, I have to lease an XC90 this week.

    I have access to Ford A-plan employee pricing from my brother. I just need a base XC90 (2009/2010) It's MSRP is 38,600.

    Please advise regarding financials -
    -- what money factor can I expect
    -- can I get the US Bank offer

    Thanks a lot in advance.
  • Maybe I'm not a good negotiator, but I've been searching for about a month for a great deal on a CPO '07/'08 XC90 with leather, 3rd row, and AWD with a clean carfax. The prices I'm seeing seem so inflated ($30-33k in Chicago) that I'm beginning to wonder if it isn't worth it go OSD, especially considering the Safe + Sound offer and I even think the Climate package is included for free right now. I estimate my cost new w/OSD at about $37k.

    I thought I'd never buy a new car, but the price difference between CPO and OSD is so slim that I'm leaning to OSD. Any comments? Am I reading the market accurately or are these factors I'm not considering?
This discussion has been closed.