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2013 and earlier Volvo XC90 Lease Questions
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Car_man
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Car_man
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You would probably be better off if you waited until the scheduled end of your current lease to get something new rather than wasting your final two payments. Also, it is not in your best interest to make a $3,000 down payment when leasing. I always advise consumers against making large cap cost reductions on leases. Those who make them risk losing part or all of them if their vehicle is totaled in an accident or stolen and never recovered.
Car_man
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The only difference between negotiating the selling price of a leased vehicle and one that you want to finance or pay cash for is that the cash incentives on leases are sometimes different. Volvo is currently providing a $2,000 cash incentive on leases of the 2008 XC90 through Volvo Finance. This means that you should be able to negotiate a selling price that's below dealer invoice. If I was in the market for one, I'd probably shoot for $1,000 to $1,500 below invoice and see what happens. Make sure to check out the following discussion to see how much other community members have paid for their XC90s lately: "Volvo XC90 Prices Paid and Buying Experience".
Once you have arrived at a selling price that you are comfortable with, have the dealer calculate your monthly payment using Volvo Finance's buy rate lease money factor. It varies by model and term. The current buy rate for a 36 month lease of an '08 XC90 3.2 5 passenger AWD is .00223. Let me know if you want a different trim level or term and I can tell you what the factor should be.
Car_man
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Car_man
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You may want to consider leasing a 2008 XC90 instead of an '07 model. That is probably the route that I would go if I was in the market for one right now. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of an '08 XC90 3.2 7 passenger AWD with 15,000 miles per year are .00210 and 53%, respectively. When negotiating your lease, make sure to take advantage of the $2,000 lease cash that is currently available on this model.
Car_man
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Car_man
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Car_man
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Car_man
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24 month Volvo Finance
MSRP: $52,382
Cap Cost: $48,589
MF: 00044
Residual: 66%
36 month through independent bank
MSRP: $52,382
Cap Cost: $42,589
MF: 00215
Residual: 44%
Compared to September, both the residuals and the incentives decreased which lead to my decision to pass.
Here is the deal I have. 2008 XC90 list 44,725, triple pack - Prem, Climate, Versatility
CAP cost is $38,900 Invoice $42,000 less $2000 incentive and less $1100 dealer hold back. 10,500/24 months lease rate factor .00061. Residual 66% Payment = 433.01 before taxes. $695 due at signing plus $200 tags and first month plus taxes, approx $1400. Not crazy about the $695 up front...
Only problem we also want the Convenience package with back-up sensors, can't believe this is not standard on a $45K vehicle. Can't find in the color we want with convenience package.
So I think we need to wait and keep fingers crossed incentives don't go away in Oct/Nov time frame to find the right configuration and color.
I may regret walking away but my plan is to buy at the end of the lease so I want the convenience package.
Install of sensors at dealer is $900, invoice on convenience package is $1133, so makes sense to me to get the convenience package.
Here's what I negotiated:
2008 XC90 3.2 (black clearcoat)
Premium package
versatility package
convenience package
climate package
navigation system
Sticker price: $48410
"dealer invoice cost": $44435
Cap Cost: $43000
$513 per month plus taxes.
Try to squeese the cap cost to a least $1850 to 2,000 below invoice. I hear that is the incentive from Volvo based on region. They are still getting holdback money. Especially if you are working with two dealers.
We're signing a lease tomorrow and had no idea the rates for Oct were going to nose dive!
Thanks in advance.
Do you have the October residual and money factors for Volvo finance for a 2008 XC90 V8 (not Sport) for 36 months at 15k/year? Also, is there lease cash available as there was in September? Thanks for any info you have.
MSRP $45,200
Cap Cost $41,908
Residual $29,380
MF .00078
Premium Package
Versatility Package
Climate Package
Traction control with AWD
Monthly payment $523 for 24 mos
Something is not right with your numbers above.
Based on them the payment comes to 577.
The difference between the Cap cost of 41,908 and the residual of 29,389 is $12,528. $12,528 divided by 24 months = $522. There is no room for the interest costs. Basically a lease is this amount ($522) PLUS interest.
Are you putting any money down up front? Looks to me $1,300 is missing somewhere.
Any other upfront fees?
Check the number again with the dealer.
Go to edmunds.com and see what the invoice costs is listed as.
I have a few questions for you:
1) Can you give me the residuals and money factors for a 2007 and 2008 Volvo XC-90 3.2 for 36mo/12k and 36/15k?
2) Do these numbers change if you get FWD or AWD?
3) Does Volvo typically have some lease cash, dealer hold backs, etc on the XC-90 such that you can usually expect to get the car at or below if you are reasonably savvy?
Thanks in advance,
Jeff
Here is the deal I negotiated and signed on 9/30/2007:
08 XC90 3.2AWD
MSRP 47320 (Climate, Premium No. 1, Versatility, Navigation)
Agreed price 42000 (price paid)
Plus acquisition fee 595
Total capitalized cost = 42595
Due at signing: 1213 (NYS title and tire fee=261 and taxes=952.19)
1st payment = 537.96 (PAID BY DEALER)
23 additional payments of 537.96
12k per year / 24 mos.
$1000 excess wear and tear allowance
The foregoing assumes a residual value of 30,758 (which is 65% of MSRP).
My deal ended up being very similar to yours.
The dealer called me on 9/30 and said they found the car I wanted.
Here is the deal I negotiated and signed on 9/30/2007:
08 XC90 3.2AWD
MSRP 46,020 (Climate, Premium, Versatility, Convenience)
Agreed price 40,022(price paid)
Plus acquisition fee 695 ($5,300 below MSRP after acquisition fee)
Due at signing: 1361 (Aquisition $695 1st Month $485, Tags 181 )
1st payment = 485.02(Was paid by Me)
23 additional payments of $485 (444 + 9% sales tax)
10,500k per year / 24 mos.
$1000 excess wear and tear allowance
The foregoing assumes a residual value of 30,373 (which is 66% of MSRP). Rate Factor was .00061
Looks like my out of pocket is $12,516 over 2 years and yours is $13,587.
But your sticker is over $1k more and you have 3K more miles built into the lease.
Hope your enjoying your XC90 as much as we are.
Thanks CAR_MAN
Thanks,
If I may ask, which dealership did you go to? I tried two dealerships in the NY area and couldn't quite get to the offer that you received.
Thanks.
They are running a new add and based on that ad it looks like the best you could do is my deal plus about $20 per month and another $999 at signing. This is a Volvo lease. Many other dealers want more money down with lower payments but Car_man said that is a no no, so I went with Volvo of Langhorne. The less down the better.
From what I have heard Volvo lowered the residual from 66% to 65% and raised the rate factor. Which, accordingly increased the payments.
You can back out the Volvo entertainment system. Save about 6 bucks a month but if you buy, that will save you 65% of $1800 that is in the residual.
Volvo has withdrawn the support for the 2007's.
I got below offer and was wondering what you guys think..
2008 AWD
Premium Package
Versatility Package
10,500/year
$2,050 at drive off which includes $450 deposit.
$415+tax/ month.
I would like to get DVD and NAV. How much more would that be a month?
Also, I was told that this deal is good until 10/27.. should I take it or wait for November?
Thanks!!!
36 mos 15K miles NO MOMEY DOWN
roll NY ST sales tax & any other $ into monthly.
PREM pkg.
7 pass seating (Versatility pkg)
AWD
NO NAV
$504/month
can I get $1000 excess wear & tear allowance
bluetooth @ $595 (saw on Volvo website @$345)
is this a fair deal?
pls respond
Car_man
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Car_man
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When negotiating your lease, make sure use the $2,000 lease cash that is currently available on the XC90 to negotiate an attractive capitalized cost. You should be able to negotiate a cap cost that's below dealer invoice after taking this cash into account. Make sure to stop by the following discussion to see how much other community members have paid for similar vehicles lately: "Volvo XC90 Prices Paid and Buying Experience".
Car_man
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Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Car_man
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Car_man
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Can you tell me when this offer, 0.00078 and $2000 incentive, will end ?
Thanks