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2013 and earlier Volvo XC90 Lease Questions

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Comments

  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi 23109vc. The XC90 V8 is definitely going to be more expensive to lease than the 3.2. Exactly how much will depend upon how the models you want are equipped and what sort of price you negotiate on them. I would be happy to calculate exactly how much the trucks you are interested in would cost to lease through Volvo Finance if you provide me with their MSRPs and selling prices. For now, I can tell you how much base models of these trucks would cost to lease if you were to pay say, $500 over dealer invoice for them. According to my calculations, if you were to lease a base 2007 Volvo XC90 3.2 2WD with an MSRP of $36,830 and a selling price of $35,197 ($500 over invoice) through Volvo Finance right now for 36 months with 15,000 miles per year, its zero down, pre-tax monthly payment would be around $463. The payment for an otherwise identical lease of a base 2007 XC90 V8 with an MSRP of $47,120 and a selling price of $44,869 would be around $577. So this will give you an idea of how much more the V8 will cost to lease. Again, if you provide me with the exact MSRPs and selling prices of the trucks you want I can work up lease payments on them for you.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello justmi1011. This selling price is well below dealer invoice, which is a very good deal. The lease payment looks very attractive as well. If you like this truck, I don't see any problem with pulling the trigger on this deal.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings Steve. This vehicle's lease program varies depending upon the exact trim level that you want. For now I will provide you with information on what the numbers are like for the 2007 XC90 3.2T AWD 7 passenger model is like. Let me know if you want something else. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 XC90 3.2T AWD 7 passenger with 10,500 miles per year are .00139 and 61%, respectively. The acquisition fee that you were quoted for a lease through Volvo Finance is too high. Its base acquisition fee is currently only $595. Dealers often try to mark this fee up to add additional hidden profit to deals. Make sure that you don't pay more than $595. Let me know if you have any other questions.

    Car_man
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  • carguy35carguy35 Member Posts: 2
    2007 XC90 Sport with Climate/Tech and Conv.

    MSRP 54,472
    invoice 50,920

    Cap Cost 51,100
    VFNA MF .00117
    LEV of $39,219
    15K / 24 Months
    $2500 Upfront
    $595 Acq.
    598 month tax incl.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Wow, 23109vc, $715 a month for a Volvo XC90 :surprise: . That's waaay too much money to pay for this truck. I do not believe that this model's lease program currently varies by region, but the selling price that you are able to negotiate will vary from area to area depending upon the level of competition. You should be able to negotiate a lower selling price than full MSRP. The line that you were fed about the selling price being dictated by Volvo and how they cannot deviate from it is not true. Try stopping by the following discussion to see how much other community members have paid for similar trucks lately: "Volvo XC90: Prices Paid & Buying Experience".

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi carguy35. The selling price that you were quoted for this truck looks attractive to me. The money factor is right in line with Volvo Finance's buy rate as well. This is a good sign because it means that the dealer that you are working with is not trying to mark your vehicle's money factor up to add additional hidden back-end profit to this deal. If you like the truck, I personally don't see any reason not to pull the trigger on this deal. Just make sure not to make any sort of capitalized cost reduction. Eliminating the down payment might increase the monthly payment a little bit, but it will protect you if your vehicle is totaled or stolen.

    Car_man
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  • carguy35carguy35 Member Posts: 2
    CarMan,

    Thanks for the confirmation on the V8 Sport lease offer.

    The dealer indicated the $2500 down included the following:

    cap cost reduction 1536....?
    1st pmt 598
    tax on cap cost 99.85
    doc fee 250

    595 acq fee, tax&license are extra..not part of the 2500.

    Are you saying I should only pay the acq fee plus tax&license?
  • gmoney0205gmoney0205 Member Posts: 4
    Hi CarMan

    Looking to get a 7pass XC90 3.2

    I guess I am confused as to whether there is a 3.2 AWD or is the AWD just for the larger V8 engine? I dont see any info on Edmunds about a 3.2L AWD XC90. Am I missing something? I think I figured it out and its an option add on , so I need to add AWD as option to get the better rates?

    They told me otherwise mf is 0.29 and residual of 70%, I am thinking the mf is missing some zeros.

    Anyways, it seems like I am better off choosing the AWD model to get the better finance lease rate, it would pay for itself and then some?

    Appreciate any input.
  • gmoney0205gmoney0205 Member Posts: 4
    ok one of the dealers got me a following quotes"

    1) XC90 FWD 7pass, with Nav, Premium, Convenience, Versatility, Climate, Xenon options with

    MSRP $46,640
    Sell price : $43,681 (they say this is $200 over invoice)
    24 month residual of 70% at 10500 mpy and a lease rate of .29, this equates to $483.73 plus tax = $518.80

    XC90 AWD 7pass, with Nav, Premium, Convenience, Versatility, Climate, Xenon options with

    MSRP: $48,490
    Sell price : $45,372 (they say this is also just $200 mark up from their invoice)
    24month resid of 71%
    Money factor of .00071
    making the payment $514.57 plus tax = $551.88

    Drive off should be the usual of acq fee, security deposit, first month payment, license and reg fees.. around $2200

    Do these sound like good deals?

    I was thinking I could get something in the mid to upper 400 range, but I would need to get the sale price WELL below invoice, like an additional $2000 or so in order to make the deal work.

    I know one person in NJ got the dealers to bid below invoice up to $3000 , I guess anything is possible.

    So I guess my questions are, are these payments what you would expect CarMan and if so, do you think I can get them to go lower on the sale price?

    G
  • volvomaxvolvomax Member Posts: 5,238
    There is a purchase incentive, but it cannot be used with the factory lease program.
    So your deal is about as good as it is going to get.
    FYI, Volvo is probably going to do away w/ the 24 mo lease special.
  • gmoney0205gmoney0205 Member Posts: 4
    thanks volvomax

    so i wonder if I can find a good lease third party outside volvo financing, I could use the purchase incentive?

    I guess its a catch 22 if I cannot find another lease company...
  • gmoney0205gmoney0205 Member Posts: 4
    ok well, i just got another good deal from my buddy who works for a leasing company.

    07 XC90 2wd, black/black.

    2007 XC90 2WD 3.2L
    MSRP 48152.00
    Invoice 44782.00
    Cap cost 44582.00
    Climate Package
    Bi-Xenon Headlights
    Premium Package
    Versatility Pacakge
    Navigation System
    18" Camulus Wheels
    Rear Seat Entertainment (DVD)

    The below is through Volvo Credit:

    24 month lease
    $2500 out of pocket
    10,500 miles
    Residual: 70%
    Money factor is .00029
    Payment: $493.51 (including tax)

    It doesnt have the convenience package I dont think, which I wanted, but has DVD and Nav which is cool.. payments look pretty darn good... anyone care to comment?
  • volvomaxvolvomax Member Posts: 5,238
    You can't beat the Volvo lease going to a 3rd party and using the incentive.
  • njsteve1njsteve1 Member Posts: 4
    Just wanted to quickly recount a positive experience with Volvo of Edison in NJ. Last week, I picked up a XC90 3.2 w/ AWD, climate,premium,versatility,convenience, rear entertainment and Xenon lights. MSRP of 48,427 and a purchase price of $43,850.

    The lease for 24 months w/ 10.5k miles per year is $450 with about $2800 up front to cover inception fees and taxes.

    I found Edison Volvo to be easy to deal with and over $120 less per month than one of the other local dealers. At least two others who I was emailing with could not meet this deal.

    Happy negotiating.

    Steve
  • 23109vc23109vc Member Posts: 218
    have any of you whoa re shopping for an XC90 considered the RX350?

    I was originally looking at the XC90...but looked at the RX and felt it might be a better deal. the RX has a 270 hp motor and weighs about 400 lbs less than the XC90. to get the price of an XC90 the same as an RX you'd need to compare 3.2 XC90s to the RX. the V8 XC90 will be too much more money...but when you look at power/weight...the 'advantage' of the V8 is pretty much nil when you factor the power of the lexus V6/weight vs the power of the V8/weight... if you compare 6 cyclinder vs 6 cylinder the RX would be better than the XC as it's got more power an dless weight to pull around.

    just a thought. maybe the volvo is tons safer..not sure..

    but in terms of prices paid / lease offers.. I've been offered an RX350 for $860 total out of pocket, and a 36 month, 12k lease for $491 month, total payment. not bad. MSRP was $37k. selling price was about $36k.

    the best i've found on a volvo V8 was quite a bit more. to get the price close i've got to come down to a V6 and performance wise, the RX will be better..

    any thoughts or opinions?
  • volvomaxvolvomax Member Posts: 5,238
    You can't compare a V8 to an RX350.
    You may as well get a Suzuki XL-7 or a Kia Sorrento.
    The V8 is a 7 seater, it IS more powerful, and safer.
    Go with a 5 seat XC90 3.2 if you want something close in price to an RX350.
  • chip_collectorchip_collector Member Posts: 3
    I am thinking of leasing a five (5) passenger XC-90
    with FWD.

    I don't need AWD or the 7 pass. seating.

    The only options I am looking at are Premium Package and Metallic Paint.

    The MSRP of the car I looked at was $40,300.

    Base: 36135
    Premium: 2995
    Metallic: 475
    Delivery: 695
    MSRP: 40,300

    I am looking for the most economical lease I can get, either 24 or 36 months. Not more. I need @least 12,000 miles per year.

    I was offered the car (with loyalty $$) for $ 35,000 plus sales tax if I chose to BUY, not LEASE.

    BEFORE heading back to the dealer to discuss leasing, can someone advise me what to expect on the lease price.

    Many thanks
    AND
    HAPPY NEW YEAR
  • collandcolland Member Posts: 2
    I'm looking at an 07 xc90 in NC with AWD, premium, climate and versatility packages. MSRP is $45,075. Cap cost is $38,575, which sounds like a good deal??? I want to lease 36 mos with 15k miles per year. Money factor seems really high - .004275. Makes payment $725/mo with $1000 down. Any help with current lease rates???

    Thanks.
  • ranger82ranger82 Member Posts: 5
    Happy New Year! Anyone have the January 2007 money factors/residuals for XC90, specifically 24 months/15K a year? Thanks.
  • musgravefammusgravefam Member Posts: 1
    Hi all:

    New to from as of today. I have a question about a lease on a 2007 XC90 3.2

    It will have the Premium and Versatility packages. It will have the 19''Camulus Alloy Wheels. The Silver Metallic with the Sandstone Beige Leather.

    I do not know much about leasing at all. We did lease a 01 Dodge Durango and sold it before e the lease up us and was upside down so we are not to sure to lease again.

    We can afford a high payment but we do not want to. We want to get them as low as possible.

    The terms the dealer in Tucson AZ gave me are:
    Selling price before taxes ex. is $41,183
    Lease will be fore 24mo. 12k a year
    we will put down 12,500 (max by Volvo's 25%)
    payments will be $184.00
    residual will be $28,145

    I know with the high down why not just buy but even with 12k down we still have a payment over 350. just wanted to see what you all thought. I have a appointment this Saturday the 13th to get it, but still not 100% sure we will get it.

    Thanks in adv. for all the help.

    Anthony
    Peoria AZ
  • bandemommybandemommy Member Posts: 20
    I would not put that much down on a lease, ever. At the end of the 24 month period you still have to buy/lease a new car and that 12,000 is GONE. You would be better off leasing the car and putting the 12,000 in a money market and pulling from it monthly to cover your expenses above the $350 you would be comfortable paying. You can also look for a very gently used XC90 and put the 12k down on that, you won't worry about being upside down and you have a car you can drive for many years to come.
  • amcdadamcdad Member Posts: 61
    Here are the rates I got from a dealer in CT recently for January:

    Through Volvo Financing:

    3.2 AWD, 24 months, 15K: 65% residual and .00087 money factor.

    V8 AWD, 24 months, 15K: 68% residual and .00120 money factor

    Through Chase:

    3.2 AWD, 36 months, 15K: 48% residual, .00260 MF, $5500 rebate

    V8 AWD, 39 months, 15K: 47% residual, .00260 MF, $6500 rebate

    Hope that helps.
  • jco11jco11 Member Posts: 4
    CarMan, I need your advice:
    I was recently quoted the following lease:

    2007 XC90 3.2L FWD w/
    Convenience Package
    Versatility Package
    Premium Package
    18" Camulus Wheels
    Rear Seat Entertainment
    Wood Steering Wheel

    MSRP $46,440
    Capitalized Cost: $41,020
    48 mos lease
    $0 Capitalized Cost Reduction
    $615/mo + tax

    Does this sound like a good deal???
  • mkar2mkar2 Member Posts: 1
    Still confused about leasing, and am looking for a little help. Should I Lease???

    XC90 3.2 2007
    MSRP $45,605
    Cap cost $35,628
    residual: $20,978
    lease factor .00236
    driveoff $1726
    payment: 583 w/tax 36 month lease

    thanks!
  • kylechoffmankylechoffman Member Posts: 79
    Can someone tell me from rangers post which of these is better:

    Through Volvo Financing:

    3.2 AWD, 24 months, 15K: 65% residual and .00087 money factor.

    Through Chase:

    3.2 AWD, 36 months, 15K: 48% residual, .00260 MF, $5500 rebate

    I own a 2006 XC90, its worth more than we owe. We put nothing down on it and its in mint condition but we dont drive enough to justify the monthly payment price and Volvo is running a 24 month deal. We also will need another car in two years so trying to prep for that now.
  • kylechoffmankylechoffman Member Posts: 79
    Volvo is running a 399 a month lease for 24 months promotion on a FWD 3.2 XC90.

    I would like to know how much this payment goes up based upon adding the following features:

    15000 miles per year or 18000 per year
    Premium Package
    Climate Package

    Also, can you put multiple sec deposits down to pay down the money factor?

    I live in San Diego, CA if that matters.

    I also have xplan pricing on all ford/ volvo vehicles if its a better deal.

    Thanks in advance
  • bassmiesternjbassmiesternj Member Posts: 48
    Local advertisment:

    2007 XC90 V6 AWD - MSRP $44,600 with 7 passenger, Climate pkg, premium pkg, Vers pkg.

    Residual - $22,054

    36 month/10k

    Due at signing: $0 sec/$1995 cap cost red/first month/$845 bank fee/MV,tax, tag, title

    What do you make of this one ?

    Note: The out of pocket would be covered with cap insurance
  • dfarberdfarber Member Posts: 18
    I understand the money factor for the xc90 3.2 AWD is .00029. When I looked at the Escalade forum, they have rates of 6.15 which is .0025625. This is a HUGE difference and makes the monthly payments for an escalade a hell of a lot more.

    My question- why would Volvo's money factor be so much lower than GM's?

    What determines whether a car has a high or low money factor?

    Thanks!
  • dfarberdfarber Member Posts: 18
    if the ad is for $379, that sounds like a good deal. WHen I tried to recalc the lease using the lease calculator mentioned on this site somewhere, I got a higher monthly payment.

    where did you see the ad? I'm in the NY tri state area and am shopping around as well.

    best i saw was montclair volvo for 399/month for a msrp 46200 xc90 3.2 awd with around $3K down.
  • bassmiesternjbassmiesternj Member Posts: 48
    The ad is in todays Bergen Record and it is for $379 at Montclair Volvo.

    I'm in Jersey and I've never delt with Montclair (I usually go over to Paul's Volvo in Hawthorne to shop around).
  • dfarberdfarber Member Posts: 18
    thanks- montclair's website has it for 399- let me know if you end up finding anything better than the 379

    do you know why volvo's money factors are so low?
  • dfarberdfarber Member Posts: 18
    your price of $493 including tax seems high when you recalculate the lease using the lease calculator referred to on this site. with the info you provided, if you put nothing down the lease would be $525 including tax (8.5% approx).

    the money factor must be higher than the .00029 you are providing.
  • amcdadamcdad Member Posts: 61
    dfarber-

    Where did you get the .00029 MF, and for how many months/miles? What residual were you quoted? That MF is different from the numebrs given to me by my local dealer....Thanks
  • dfarberdfarber Member Posts: 18
    i didnt get .00029 from a dealer- i just saw it a few times times throughout this website. i also saw .00071. what were you quoted?
  • dfarberdfarber Member Posts: 18
    fyi- if i recall the .00029 was for 24 months for 10500 per yr with a 71% residual value.
  • jhabrejhabre Member Posts: 17
    Hello amcdad,
    I negotiated the price for the 3.2 AWD but am looking for an alternative bank to lease from (other than Volvo). All the banks I called won't deal with individuals. May I have the number to Chase, and what is the $5500 rebate all about?
    Your help will be greatly appreciated. Thanks.
  • volvomaxvolvomax Member Posts: 5,238
    No bank will deal with an individual on a lease.
    It has to go thru the dealership.
  • kyfdxkyfdx Moderator Posts: 235,217
    That's not quite accurate..

    Leasecompare.com will write a lease on almost any car for an individual. They are very competitive, especially on used cars.

    However, the dealer can usually find the best lease rates on a new car.

    regards,
    kyfdx

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • volvomaxvolvomax Member Posts: 5,238
    I saw that.
    It looks just like a broker site to me.
    Far different from being able to contact the bank directly.
  • kyfdxkyfdx Moderator Posts: 235,217
    I'm not sure how it is different (not literally, but in function). The consumer can get a lease on his own.. You don't have to use the dealer.

    I'm familiar with them, because they are based in Cincinnati.

    True, you may not be able to call up USBank or Chase and get a lease... but, you do have options other than the dealer.

    The big advantage is on used cars. The bank will buy the car from a private seller, and lease it to you, if that is what you want to do.

    regards,
    kyfdx

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • volvomaxvolvomax Member Posts: 5,238
    It is different in that the broker still has to BUY the new car from the dealer.
    IF there is a lease only incentive, the dealer cannot pass that onto the broker.
    So, the broker buys the car and marks it up(he's got to get paid) on a Volvo for example the lease incentive is greater than the purchase incentive, so the customer ends up paying more than if they just went to the dealer.
    Brokers don't save you money.
    Used Car leasing, unless its a 1 yr old car is a bad deal.
    The terms stink for the most part.
  • amcdadamcdad Member Posts: 61
    Hello jhabre,

    I believe the rebate may have been bumped to $6500 (inclusive of a "conquest" rebate if you have a non-Volvo car, I think). My local dealer showed me the numbers from their "book" in January, then updated the rebate amount by telephone in February.

    I don't have a phone number for Chase. As I understood it, the dealer would have set up the lease whether I selected Volvo Financing or Chase. I think any dealer should be able to provide you with the info and set it up for you.

    Good luck!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kylechoffman. If you provide me with the exact MSRP and selling price of the XC90 that you are interested in I will gladly work up sample lease payments using both of the programs that you mentioned to see which one is better.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi again kylechoffman. The last time that I checked Volvo Finance did have a multiple security deposit program. It allowed lessees to make up to six additional deposits on 24 month leases and up to ten additional deposits on 25 to 48 month leases. Each additional deposit will reduce the money factor that is used to calculate their vehicle's monthly payment by .00006.

    Ford X-Plan will provide you with an attractive purchase price for the Volvo that you want. If I was in the market for an XC90 and had the ability to purchase through the plan, that's the way that I would go. If you let me know what the MSRP and X-Plan selling price are for the exact model that you want I will gladly calculate a sample lease payment on it based on 15,000 miles per year.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi bassmiesternj. The $10,000 question is "What is this vehicle's selling price?" The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without knowing this truck's selling price, it is difficult to tell if you are getting the best possible deal on it. Let me know what this number is and I'll tell you what I think.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi dfarber. The answer to your question is, that's the level of support that it takes for Volvo to sell the number of XC90s that it wants to sell. Manufacturers' set the money factors that are available through their captive finance companies. The Cadillac Escalade was recently redesigned and has been very well received by the public. This gives it a higher residual value than the XC90 and makes it very desirable for consumers. I am sure that General Motors will eventually have to increase its lease rate support on the Escalade, but it is going to ride the increased popularity of the redesigned model for as long as it can.

    Car_man
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  • jhabrejhabre Member Posts: 17
    Hi Car_man,

    Do you have the MF & RV for the XC90 3.2 AWD w/ Premium, Versatilty, & Climate packages (24 mos - 10,500 mpy)? Also do you think March's rates will be any better?

    Thanks,
    Jamie
  • need_a_new_carneed_a_new_car Member Posts: 14
    I'm still pulling together quotes but I received this from a local dealer: "The 2007 XC90 3.2 FWD with Metallic Paint, Versatility and Premium Packages, has a sticker price of
    $42,550. Your price, on a lease, is only $33,550. With a total due at delivery of $2,500 at 12000 mpy,
    you have 35 remaining payments of $478 plus tax."

    Is it common practice to list one sales price for a car for lease purposes and to actually sell it for a different price? How is this lease stacking up compared to others – I believe it still seems high for a truck that is no longer a hot model. I believe a few years ago before the big incentives I was quoted $430 for the same lease.
  • volvomaxvolvomax Member Posts: 5,238
    The difference between a "selling" price and a leasing price is usually the lease incentive.

    XC90 has never been cheap to lease. It IS a $40k + car.
  • kylechoffmankylechoffman Member Posts: 79
    Thanks for your help - Here is the info on two configurations:

    XC90 3.2 A FWD - 34682
    Destination - 695
    Premium - 2627
    Climate and Active Xenon Lights package - 1042

    XC90 3.2A W AWD - 34682
    Destination - 695
    Premium - 2627
    Climate and Active Xenon Lights package - 1042
    AWD System - 1623

    If you can run numbers for 15K miles and 18K miles I would appreciate it.

    As a side note, the current Volvo lease offer is (Based on MSRP Pricing):

    2007 Volvo XC90 3.2A Base FWD

    Lease for $399 per month for 24 months

    With $3,419 cash due at signing

    Includes security deposit, excludes taxes and registration fees

    Thanks again! :)
This discussion has been closed.