2013 and earlier Volvo XC90 Lease Questions

CarMan@Edmunds · September 2007

Hello ethandane. Is this a 2008 or a 2007 model? This is important because there is a big difference between the incentives on the '08 and the '07 model. Also, what is this vehicle's MSRP? I ask because without it, it is difficult for me to tell how much of a discount you are being given. Volvo is currently providing $2,000 lease cash on the 2008 XC90. Plus probably there is at least a $3,000 difference between this vehicle's MSRP and dealer invoice price. This gives you a total of $5,000 to play with during your negotiations. If I was in the market for this vehicle, I personally would shoot for a discount of $4,000 to $4,500 and see what happens.

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CarMan@Edmunds · September 2007

Hi wiginton. The money factor that you were quoted for this vehicle looks good to me. However, I think that you should be able to negotiate a lower selling price. Volvo is currently providing a $2,000 cash incentive on leases of the '08 XC90 through Volvo Finance. After this cash is backed out of your deal, you are only being given a $300 dealer discount on a vehicle that has a spread of around $3,000 between its full MSRP and its dealer invoice price. It would be in your best interest to comparison shop with a few other dealers in your area. Try stopping by the following discussion to see how much other community members have paid for similar vehicles lately: "Volvo XC90 Prices Paid and Buying Experience".

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CarMan@Edmunds · September 2007

Hi mistake. You never mentioned the selling price or MSRP of the XC90 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 what this vehicle's selling price is 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 of this deal if you let me know what these numbers are.

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.

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coasterbob · September 2007

I know Volvo are pushing the 24mon lease on the XC-90, but has anyone gotten a good deal with a 36mon/12K lease? This is the deal-breaker for me. I just can't see doing the 24/month deal. Thanks, Bob

CarMan@Edmunds · September 2007

Hi tindallas. The best way to get a good deal on a lease is to negotiate as low a selling price as possible on the vehicle that you want and then have the dealer that you are working with calculate your monthly payment using its buy rate lease money factor.

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.

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CarMan@Edmunds · September 2007

Here's the information that you're looking for, rpo6g. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 XC90 3.2 7 passenger AWD with 19,500 miles per year are .00210 and 50%, respectively. When negotiating your lease on this vehicle, make sure to take advantage of the $2,000 cash incentive that Volvo is currently providing on XC90s that are leased through Volvo Finance.

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CarMan@Edmunds · September 2007

Hi wyundt. Unfortunately, Volvo is no longer providing lease support on the 2007 XC90. As a result, if you want to lease one you will have to do so through an independent bank and take advantage of the cash incentives that are available on leftover models.

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.

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CarMan@Edmunds · September 2007

Congratulations on getting your new XC90, elansp. Thanks for taking the time to share the details of your lease with everyone. Make sure to stop by the new Dealer Ratings & Reviews section of Edmunds.com to share your thoughts on your recent dealer experience with others. Enjoy your new ride!

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CarMan@Edmunds · September 2007

Here's the information that you're looking for, Mark. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 XC90 V8 with 12,000 miles per year are .00191 and 56%, respectively. As others have mentioned recently, Volvo's 24 month program for the '08 XC90 is probably the most attractive right now. You may want to consider going that route. Volvo Finance's 24 month, 12k numbers for this truck are .00044 and 66%. When negotiating your lease, make sure to take advantage of the $2,000 cash incentive that Volvo is providing on leases of this vehicle. It will help you to negotiate an attractive capitalized cost for your lease.

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CarMan@Edmunds · September 2007

Hi Joe. Volvo's current lease program is only scheduled to run through October 1st. It is difficult to say what its new October program will be like. Please feel free to check back with me late next week and I should be able to give you the details of the new program.

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coasterbob · September 2007

CarMan, please provide the money factor, residual for an 08' XC90 3.2 , 7pass., AWD. (36month. 12K) Also explain how these numbers work (monthly payment), for a lease in an example of a selling price of $44,000. Thanks you, Bob

zamo · September 2007

Why do you want a 36 month lease? Volvo is promoting very good lease programs for 24 months. I see no reason to choose a 36 month plan.

epiney · September 2007

Here is what I was quoted. Wanted to share in thanks for help here. I did not go ahead as the programs were much better in September:

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.

coasterbob · September 2007

.......because this is such a great vehicle, that I prefer to keep it longer, at a good monthly payment. I don't like turing in cars in 2 years. Bob

binsky33 · September 2007

Wow, learned a ton from this site. I knew so much going in to negotiate. Wanted to buy an XC90 but with the lease incentives, it is more like a buy with a balloon payment in two years.

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.

landrover1 · September 2007

That sounds like a great deal, where did you get it? I am looking for a XC 90 with Prem, Climate, and Xeon in Southern Cal.

binsky33 · September 2007

Langhorne Volvo in PA. But you should be able to work this anywhere if you read this site. Work with invoice values only, you can find these on Edmunds site, forget sticker prices. Then deduct $2,000 for the September incentive and ask what the hold back is currently and reduce that too. Ask for residual % and lease rate factor. There are websites out there that you feed the info into and it will return the lease values. If you can't crank the lease numbers yourself don't sign until you can. Play with my numbers above at website for calculating lease payments and you will return the month lease amount. Don't put in the tags and inception payment and you should be within $1 of 433. I learned all of this here!! You can too !!

jginnyc · October 2007

I've been in discussions with two dealers for some time regarding a 2008 XC90 3.2. Both called me over the weekend to say that the October deals are getting worse for leases than September and both were willing to write the lease today (10/1) to take advantage of the September lease terms. Residual rates are going down by 1% and money factors are increasing from .00061 to something north of .00075. This has the impact of adding approximately $35-40 per month onto your lease payment.

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.

binsky33 · October 2007

I have heard the same thing. The dealer stated they had a letter from Volvo that the October lease deals were going up. They are looking for a 4 pack, convience, vers, climate, premium, to trade for me, so we can make a deal . Glad to hear you are getting the same story.

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.

cbarrs · October 2007

Does anyone have confirmation that the $2K incentive and the holdback are still in place for October in NY?

We're signing a lease tomorrow and had no idea the rates for Oct were going to nose dive!

Thanks in advance.

jeffsauls · October 2007

Car_man --

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.

fez3 · October 2007

Can anyone please help me with a Volvo XC-90 3.2 AWD quote i got from the Volvo dealer in NYC. Is this a good deal?
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

binsky33 · October 2007

Hi,

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.

adnilem · October 2007

Can someone tell me what the Volvo lease rates are for October on the 08 XC90 AWD 3.2 7 seater? I'm looking at 24 and 36 months.

jtbaer · October 2007

Car Man -

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

mark_s · October 2007

Thanks CarMan and everyone else for sharing your info.

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).

binsky33 · October 2007

Hi

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

jhyoo · October 2007

Hi, I was wondering what the residual and MF were for the 08 XC90 3.2 AWD for 24 and 36 month with 18000 miles? Also does anyone know what cashbacks or incentives that are available for OCT?

Thanks,

coffeeman2 · October 2007

I have the same questions as jhyoo except can you also give the numbers for 12000 miles. Thanks

firsttime6 · October 2007

Hi Mark_S

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.

mark_s · October 2007

Email me -- g2222f at gmail.com and I will give you the info. From some of the October posts in the other forum, it looks like the Volvo lease terms for October are not as attractive as they were in September.

mark_s · October 2007

Binsky33 -- nice job!

binsky33 · October 2007

I went to Volvo of Langhorne near Reedman in Langhorne PA. You can go on line and look at their current ad.

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.

garrick · October 2007

Anyone know what 2007s are leasing for in the NY area? I'm flexible on packages. Looking for 12K miles/yr and nothing down. Looking to keep below the current 2008 mthly amounts I've been seeing.

volvomax · October 2007

If you want to lease, geta 2008.
Volvo has withdrawn the support for the 2007's.

gbark · October 2007

Hello,
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!!!

lyakir · October 2007

How many months was the lease for?

gbark · October 2007

24 months.

barryalan · October 2007

volvo xc 90 '08
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

garrick · October 2007

Which dealer is this? and just to confirm - $504/mth all in - zero out of pocket for 15K/36? If so, that's really good.

annscan · October 2007

Is it a V6? What was the MSRP, negotiated price, residual and MF?

CarMan@Edmunds · October 2007

Hi jeffsauls. Here's the information that you're looking for. Through the end of the year Volvo Finance's buy rate lease money factor and residual value for a 36 month lease of a 2008 Volvo XC90 V8 with 15,000 miles per year are .00198 and 51%, respectively. Volvo is providing a $2,000 cash incentive on leases of this model through Volvo Finance.

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CarMan@Edmunds · October 2007

Hello adnilem. Through the end of the year, Volvo Finance's buy rate lease money factor and residual value for a 24 month lease of a 2008 XC90 3.2 AWD 7 passenger with 15,000 miles per year are .00078 and 62%, respectively. The numbers for an otherwise identical 36 month lease are .00250 and 52%. When negotiating your lease on this vehicle, make sure to take the $2,000 lease cash that Volvo is currently providing on it into account.

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CarMan@Edmunds · October 2007

Hi Jeff. Volvo is not providing lease support on the 2007 XC909 any longer. So if you want to lease one, you will have to go with a 2008 model. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Volvo XC90 3.2 AWD 7-passenger with 15,000 miles per year are .00250 and 52%, respectively. The numbers for the FWD version of this truck are different. The money factor and residual value for an otherwise identical lease of a FWD model are .00212 and 50%. If you were to lease with only 12,000 miles per year, its residual values would be 2% higher.

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".

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CarMan@Edmunds · October 2007

You're very welcome, Mark. Congratulations on getting your new XC90. Thanks for taking the time to stop back and share the details of your lease with everyone. Make sure to stop by the new Dealer Ratings & Reviews section of Edmunds.com to share your thoughts on your recent dealer experience with others. Enjoy your new ride :shades: .

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CarMan@Edmunds · October 2007

You're very welcome, binsky33. Enjoy your new ride!

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CarMan@Edmunds · October 2007

Greetings jhyoo. Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2008 Volvo XC90 3.2 AWD 7-passenger with 18,000 miles per year are .00078 and 60%, respectively. The numbers for an otherwise identical 36 month lease are .00250 and 50%, respectively. Volvo is currently providing a $2,000 cash incentive on leases of this model through Volvo Finance.

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CarMan@Edmunds · October 2007

Hi coffeeman2. Volvo Finance's 12,000 mile per year residual values are 4% higher than its 18,000 mile per year residuals.

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javafan1 · October 2007

Hi Car_man,

Can you tell me when this offer, 0.00078 and $2000 incentive, will end ?

Thanks

lyakir · October 2007

Does the $2000 go towards cap cost reduction?

2013 and earlier Volvo XC90 Lease Questions

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