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Our dealer mentioned that Volvo will start assembling '04 XC90 models as early as in January, with deliveries beginning in March-April (this explains the q-ty of 6,000 '03 models that Volvo said it will manufacture). Even if there will be no changes/improvements - it makes sense to wait a couple of months to get a '04 car... Or will the price be raised a bit..?
I talked to the chief Volvo representative at the recent XC90 event in El Toro, California. He said a V8 for the XC90, if it it were ever produced, would be a long way off. His feeling were that a V8 XC90 would be a low volume vehicle that would not be a money-maker, but may someday be built for the prestige factor.
My salesperson is stating that the '04 will appear in the April-June timeframe. I put my name on the list about two weeks ago, and he recently suggested that I will very likely be getting an '04. Luckily my dealer isn't requiring deposits, as I am still looking at the MDX
Even though there will be more competition the XC90 is still head and shoulders above the competition. The MDX is 2 yrs old, it still brings MSRP, or close in most markets. With the low availability, and high demand/interest I think the XC90 will continue to bring MSRP for a while yet.
For the 04 version, don't look for many changes, probably more availability of the security pkg and bi-xenons. Possibly a price increase? The V8 was slated for the Elite/Executive edition of the XC90 so it won't be a volume option. No word on when exactly it will be available.
I have heard- and this is not from any reliable sources- that the packages on the '04 XC90 will be substantially higher. If you look on a Volvo dealer's website, you will see an initial price for the packages as being several hundred to over a thousand dollars more per package. Underneath, they apply a "discount", which is equal to the numbers in the publications and websites.
Rumor has it that these packages will no longer carry this "discount", or at least be priced significantly higher....
We live in New Mexico and my wife is focused on the 2003 XC90, but I was expecting to pay MSRP - not MSRP + a $3000 dealer premium. The dealer told me that Denver dealerships were requiring a $5000 premium. Has anyone else come across this?
Thanks for the input - btw we walked out without making an order.
I haven’t seen it around NY area, but there are a few people on ebay offering their spot for $1,000 and up. You then have to pay MSRP at the dealership of the seller, wherever that may be.
I wouldn't touch a dealership asking a premium. It sends a bad message. Not just talking about the XC90 here either. It is actually one of the reasons we don't currently have an MDX, and have placed an order for the XC90.
When a dealer gets MSRP, they are making a SIGNIFICANT profit on the vehicle. Any dealership, in my mind, that ever asks above MSRP for a vehicle will not get my service. Why should I get taken advantage of? I do not subscribe to the "law of supply and demand" in this case. Sure, that law applies- but for MSRP. As a dealership, you are basically saying, "Hey, I can rip you off on this vehicle, so I am going to. I'll suck every dollar out of you for this car purchase, and on top of that- since $$ right now is all I care about- I'll probably forget about you until you need to spend more money with me."
I'm sorry- MSRP+ just doesn't cut it with me. Find an honest dealer- I'm certain they are out there. For example, we were able to find three Acura dealerships selling the MDX at MSRP- just didn't want to wait the amount of time for delivery. This hasn't been the case with the XC90 for us- at least not in the Northeast. Every dealer is MSRP around here, and some are even appologizing for it.
I'll give a quick story of an Infiniti dealer to make my point. I was cross-shopping the QX4 in 1998 with a few other SUV's. I walked into a local dealership in NJ, and upon introducing myself to the salesman, he recalled a car he sold to my grandfather 6 years earlier. Unbelievable. He then came out and told me that Infiniti was about to offer a cash to dealer incentive on the car, and that if I waited another few days I could save over $3000. Well, ended up purchasing below invoice, and if there is ever an Infiniti on my wish list he has my business......
So for any Volvo dealer out there trying to get a few more $$ right now.....good luck selling them their next car in 5+ years.
Does Volvo have the power to prevent or discourage its dealerships from charging above MSRP?
That's something that Acura has/had been unable or unwilling to do, much to the chagrin of buyers. Supposedly Acura is now targetting such dealers and threatening to lower their allocation, but that's just a rumor that I've not seen proof of.
Mercedes-Benz supposedly has the the ability, though that hasn't stopped an occasional bad story about dealership pricing practices.
If Volvo can clamp down, that'd be a very customer-friendly approach!
I agree that charging over MSRP is not the best policy. On the other hand supply and demand do enter into the equation. We have had people offer to pay over MSRP if we could get them a car sooner. Of course we had to decline. There are dealers charging over,one was selling a car on ebay, don't know how the auction ended. BY contrast we have had some people incensed that we are charging sticker for the car, seems they don't get the supply and demand equation either.
As for Volvos control over the dealers pricing policies. They don't have any. They can and do discourage gouging, but otherwise its up to the dealers discretion. Mercedes is the opposite, they try to control the amount of discount a dealer gives. Give too much and lose some of your allocation. Personally I like that approach Best advice, don't buy if the price isn't right.
Has anybody been able to find out what the Gross Vehicle Weight Rating (vehicle weight + cargo capacity) for the XC90 is. It seems Volvo does not publish this figure, however it makes a great deal of difference regarding tax implications for self-employed individuals if the vehicle has a GVWR over 6000 lbs.
i would just like to share with you guys who have xc90 reservations that this vehicle is truly very, very hot right now. consider yourself lucky, since rumors abound that all vehicle allocations for november up to june 2003 have already been sold out. i happened to surf and search through ebay.com and one xc90 reservation is being auctioned and already been up for bid to the tune of $ 4,959.00. more will be on the waiting list as the word is out that the xc90 is motor trend's 2003 suv of the year. so now start shopping your wish list for add-ons to your vehicle (for example: wheel molding, door edge molding, bumper scuff protector, body side molding, pinstripes, cargo mats, floor mats, etc. where they can be easily purchased from your pep boys or rs strauss outlets). don't forget that the xc90 doesn't look like it is a complete package without the roof rails/cross bars or the rear skid plates (these 2 you have to buy from your volvo dealership). bi-xenon lights can be added later on. i will get delivery of my xc90 on 3rd week of december, just in time for christmas (i have the black sapphire 2.5t awd with taupe leather complete with premium, versatility and climate packages).
I am the "bad" guy! Do not try find excuses for your uncontrollable spending habit! What does it mean when you see an nuthead pay a lot more than a stick price? What proportion of the population are a nuthead? Luck for you? Maybe for the company.
I posted on this topic some time ago as there are quite a few people including myself in this category.
The only numbers I've seen on GVW for the XC90 show that only the T6 AWD with 7-seat configuration breaks the magic 6,000 lb number for GVW. I'll picking up one or two (for business purposes) next year when supply comes closer to demand and I can deal.
I was interested in the XC90 but lost interest after visiting the dealership. They had one on the floor with side rails and some rear view video system. Also had a DVD video setup installed for the rear passengers. The cost of the lease WITHOUT the packs was $599 per month for 48 months and a little less than 2 grand due at signing.
I looked at the interior which was not impressive at all. The fake wood looked terribly fake (like shelf paper). I was only interested in the T6 since I once drove the T5 engine in the S60 and it felt ok with a little turbo lag in the lower rpm range. When I found out that the 4 speed transmission (in the T6) was made by General Motors that made me CRINGE!! Ford owns Volvo but won't use Ford's parts bin? I realize that due to size constraints they had to get a different transmission but that is unacceptable in this segment. The car has some nice safety features and received the SUV award but that doesn't sway me. Motor Trend also gave that award to the Renault Alliance in the 80's... it means NOTHING!! How about the Infiniti FX45? Same price, similar segment, V8 power and Japanese reliability? Glad I passed...
There seems to be a lot of disagreement over the quality of the interior, and the overall look and feel once inside.
Well, understanding that everyone has their own opinion, mine is that it fits in very nicely with what I would expect out of a $40,000 vehicle.
Are there more luxurious interiors available in SUVs? Sure. But I personally am not purchasing an SUV purely for the luxury appointments- I am purchasing one because it fits my needs. I'd love to drive around in a BMX 330xi, but it just isn't practical with a family.
At this point, my needs are space and enough luxury that my wife will enjoy spending most of her days inside of the particular vehicle we purchase. We love the X5, but cargo room is non-existent. Ditto the RX300. We hate the looks of the Mercedes. We currently drive the QX4, and although it's been a nice car, the safety of the XC90 really sways us there.
So, what it boils down to is the MDX and XC90. As far as quality interior and safety, the XC90 wins hands down, in our opinion. Which is why we have one on order........
Hi, new to this forum. I placed a purchase order (and $1,000 refundable deposit) for a Silver/Taupe T6 which will deliver Dec 9. My husband and I did not intend to get the 3rd row of seats but the dealer says that this is a mandatory option for all 2003 XC90 sales. Has anyone else heard this? We decided to go ahead and get it anyway for the resale value. I can't wait to be driving my new SUV in a couple weeks!!!
I agree. Considering the "whole" package, I believe it is the best for the price. The whole package meaning: Storage, flexibility, safety, comfort, offroad ability, body construction, power, and looks. It provides enough luxury to please the senses. If the recent stats regarding SUV accidents and injuries are accurate, safety is BIG. Motor trend was impressed with its offroad abilities. It offers good space for a family and additional gear (camping, etc.) It has vault like construction. It has a relatively good towing ability. Etc. Etc.
Sure it would be great to have noticeably real wood trim, but at what cost? There are more expensive SUVs that people can buy to obtain that look. But even at that higher cost, do they match the other positive attributes of the XC90?
Everybody has their own priorities. My current ones are met with the XC90.
I live in Northern VA. We first went to the Dulles, VA dealership and they said earliest would be a Feb delivery. We drove up to Rockville (355 Toyota Volvo dealer) and was quoted the Dec date. I believe we placed the order 3 wks ago.
I checked with Volvo and the GVWR for the XC90s are: T6 with 7 passenger seating.........6080 pounds 2.5T with 7 passenger seating.......6005 pounds Therefore, if you go with the 7 passenger seating either version of the XC90 is over the magic 6000 pound limit.
If you own your own business, and purchase a vehicle for use with your business, it can qualify for a section 179 deduction. I copied the following off a tax site which helps explain the tax advantages, but if you want more information a search of the web will turn up lots of specifics.
Cars used for business are subject to a special reduced section 179 limit ($3,060 for autos purchased in 2002). The already-puny allowance is further reduced by any personal use. To wit: The deduction for a new $40,000 Lexus sedan used 75% for business is an almost laughable $2,295, or about 5% of the car's cost.
But if you find a "heavy" sport utility vehicle (SUV), pickup or van that rings your chimes and buy it before year's end, it's a whole different — and much better — story.
According to IRS regulations, a passenger vehicle is considered a "truck" for tax purposes when it has a gross vehicle weight rating (the manufacturer's maximum weight rating when loaded) over 6,000 pounds. Truck status means very favorable depreciation rules when the vehicle is used over 50% for business. Some popular SUVs pass the truck test; the Chevrolet Suburban and Ford Excursion are the beefiest examples. There are quite a few others, and a bunch of pickups and vans qualify as well. So ask dealers about models that fit the bill.
Now, let's get specific about the tax advantages. Say you buy a new $35,000 Suburban this year to be used 100% in your sole proprietorship business. As long as you put that hunk of metal to work before Dec. 31, 2002, you can bag a whopping $24,000 section 179 deduction (assuming no other equipment additions for this year). Next, you can claim an additional $4,800 under the first-year 30% bonus depreciation break [($40,000 - $24,000) x 30% = $4,800]. Finally, you can deduct the remaining $11,200 of cost over six years under "standard" depreciation guidelines ($40,000 - $24,000 - $4,800 = $11,200). In most cases, this means a 20% first-year write-off, based on remaining cost, which adds another $2,240 worth of depreciation (20% x $11,200 = $2,240). So your total first-year write-off for that new Suburban is $31,040, which amounts to an amazing 78% of its purchase price ($24,000 + $4,800 + $2,240 = $31,040). That sure beats the wimpy $3,060 first-year write-off for a "regular" car costing the same amount. Another plus: Heavy SUVs, pickups and vans also escape the 3% luxury tax on passenger vehicles priced over $40,000.
Edmunds has a complete message board related to this very issue.
I found the T6 steering very light at low speeds, and more firm with greater "feel" at higher speeds. The 2.5T will give you more "feel" at low speeds. It is all a matter of preference.
Thanks for the info. I am a 100% business owner and I've been looking to buy either a MDX or XC90, not for tax purposes but to replace a Volvo with relatively high mileage. Your post made me think that perhaps I should get the XC90 to get the tax benefits.
Obviously I need to consult a tax advisor, but say if I buy a >6000 lb GVWR SUV before year end, can I then deduct 100% of the allowed depreciation even if I've only used it for say 5% of my business miles (I am using IRS mileage 36.5 cents/mile now) for 2002? What about in 2003? Are the only deductions allowed: service, insurance, gas etc, as I have taken the bulk of the deductions in 2002? Any limits on how long I need to keep the vehicle in business use or can I buy another XC90 in 2003:)?
I wrote Ford X-Plan regarding XC90 eligibility (currently, it is not eligible) and I was told that the XC90 becomes eligible starting in December.
I actually have a dealer that will honor an X-Plan purchase if the XC90 is eligible. However, the same dealership has not been told of December availability, but rather late summer of 2003. Also, the dealership will only honor X-Plan purchase on in-stock vehicles, not ordered vehicles (although Ford X-Plan applies to both cases). And they have to service all of their MSRP customers first before X-Plan purchasers. So, if they do have an XC90 in stock and an MSRP customer wants it, that customer gets it.
Overall, it will be hard to find a dealership willing to sell you an XC90 at X-Plan prices even when the vehicle becomes eligible. And this should be expected. Realistically, I think that late summer 2003 may be a good guess. But, then again, YMMV (your mileage may vary).
I took a CD to the dealer to test the stero system in the T6, which had the premium stero system. The sound was fantastic. Well to the point. Does anyone know who is supplying the audio components for the XC-90?
In Post 653, regarding "below MSRP" the Freestyle was mentioned by RManke. Not a newcomer to the XC90 emergence, having posted to this board in January, I was shocked and surprised by this throwaway line that no one picked up on.
Sir, what is your source of data on the Freestyle? My research on Ford and Edmunds.com has turned up zero. If it's essentially the same as the XC90 and most of us are willing to wait for the spring 2004's come out anyway, why not add the Freestyle to a list of new rigs with greater price negotiability?
Just picked up our white 2.5 at the dealer. It came in two weeks early, unexpectedly. It was the first one delivered to a customer from our dealership (here in Cleveland).
Love it so far. Compares favorably to my BMW X5, but with more room.
I'll update more as I drive it more. It's snowing like crazy here today, so it will stay in the garage for now.
Try researching on Crosstrainer, the old name of the Freestyle. Motor Trend says that it is based on the Volvo S80 platform (like the XC90), so is the upcoming Ford Five Hundred.
Kaitsu - no X-plan that I'm aware of. I just talked with my dealership (Atlanta) and our car is coming in next week, but no X-Plan (or any Ford discounts programs) will be offerred on it. Thus, right now, we are looking at other alternatives.
I've been excited about this car for the past several months - and have been an avid follower of this town hall. Finally, our dealer got a T6 in for us to test drive. And, regretfully, we were disappointed. First, the car seemed sluggish. The engine would whine awfully loud when you hit it with gas to quickly accelerate. It was like the engine was trying to give it, and the wheels wanted it....but, it simply couldn't get the power through. Second, the interior console appeared inexpensive / cheap. Just not refined for a car at this price range. Finally, just some minor annoyances - single control for window and child lock, certain controls inconveniently placed behind gear shift, awkward sunroof controls, etc. Maybe much of this is me-someone accustomed to Japanese cars. Love to hear thoughts from others.....especially on the engine noise. Does the 2.5T have better acceleration and less noise coming from the engine?
I have driven both the T6 and 2.5T and neither has off the line tire screeching acceleration. Both vehicles were better at accelerating after they were up past 35 to 40 mph (say for passing situations). At low speeds the 2.5T had more engine noise when accelerating than the T6, but after 35 to 40 mph both engines were pretty quiet, unless you floored them for passing, etc., then engine noise was not worse than any other SUV I'd driven. In the T6 I drove, the engine was actually very quiet. There seems to be a lot of varied opinion as to the interior. I thought the interior of the Volvo was on par with the BMW or Lexus, but I did find the gauges hard to read on the XC90. If acceleration is a priority the BMW X5 will be a better option. If you want acceleration plus 7 seats check out the Acura MDX which had good acceleration at any speed with little engine noise. I passed on the MDX because of the safety features of the Volvo, plus the interior of the MDX to me was the cheapest, and most uncomfortable of any of the SUVs I tested. I think if the VTEC engine of the MDX along with the Acura's transmission could be fit into the Volvo you would have the perfect SUV. Or if Acura would spend a few thousand more to upgrade the MDX's interior and safety features they would have the perfect ride. The new VW Touareg sounds good from the reviews, but will only have 5 seats, and I needed 7.
Well, we picked up our 2.5 Black XC90 on Friday. Originally we were looking for the 7 seats, but the more we thought about it and how often we'd need it (have a 1 year old now with another on the way) in the next few years, we decided we'd take the 5-seater. The 7 seats would be nice, but we felt there was a significant difference in 2nd row room when you added the third row- even though you are able to slide the 2nd row back and forth. Plus, the little one couldn't sit back there for several years, so we'd essentially have the 3rd row folded down 99% of the time for storage needs.
Anyway, we love it! We actually drove it off the lot in a snowstorm, so we put it to work right off the bat. Other than pulling it into the driveway dirty (half the fun of a new car is the smell and shine!), we had a 100% satisfying experience. The non-premium sound system is excellent, as we played around with the changer a little on the ride home to get the feel of it. THe dash controls are a little confusing at first, but easily figured out.
Comfort is first class. Extremely comfortable seats, and we took it on a 3 hour jaunt over the weekend. Seat warmers heated up in about 3 minutes to a nice warmth, and overall ride is excellent.
A few things that we don't love, but are not real issues- no ashtray in front. You need to order as an option, and it takes the place of cupholders in the middle console. We don't smoke, but usually use the ashtray for small trash, etc. Not a major issue, since there is still a 12-volt lighter for car phone, radar, etc., but a little confusing. Also, the rear window is heavily tinted- tough to see what type of car is behind you, but I guess it's not bad that you won't be blinded by bright lights or larger trucks.
Anyway.......truly love our new XC90 and can't wait to drive it more! Also, as an aside, we had never considered Volvos in the past. Just never thought to. While in the dealerships, we looked and sat in the S60 and S80, and were duly impressed. Our Audi A6 lease comes up next year, and we will consider a Volvo sedan....
Since you mentioned seat warmers and playing around with the changer, I think your XC90 has the Premium and Climate Packages. Did you get the Bi-Xenons?
Yes, our vehicle has the Premium and Climate Packages. We would have loved the Bi-Xenons, but unfortunately did not get them. We hit a dealership right after they got a cancellation on one of their first XC90's, and jumped on the car- as it was pretty much what we were looking for. Also has the 17" wheels, which I think enhances the look nicely.
Additionally, might have preffered the mettalic black instead of the regular- as well as a NAV system......but, at $39,430 we were very happy with what we received!
Gassed it up today at a local station, and had the mechanics come out and start looking under the hood, etc.. It was fun.
if you already have your xc90 in your garage, i would recommend going to carreview.com and post your feedbacks, opinions, pros and cons of the vehicle and how you would rate it (just click on reviews and add "volvo xc90" to the suv category). it has a rating system where you can input your own score for the vehicle. you can always post anytime you like. you can also read the feedbacks of other buyers from similarly-equipped vehicles and find out the overall customer satisfaction rating.
I just got back from getting my XC90 on the Overseas Delivery program, at the Volvo factory in Gothenburg, Sweden. Volvo really took care of my wife and I, picking us up at the airport; picking us up the next day at the hotel to go to the factory; taking us to the Volvo Museum (miles away) after the factory tour; and finally taking us to the airport. The factory tour was fascinating, and we saw lots of XC90's on the line in various stages of production. We were told that XC90's ordered now are for delivery next October! Didn't ask what markets they were specifically talking about. We were also told that the 2004 S80 is coming out in the 10th week of 2003, which is when they anticipate switching the XC90 over to 2004 designation, with no real change in the model. That would put it about March 2003. I highly recommend the Overseas Delivery.
My wife trailed one in our neck of the woods near Herndon, Va (suburb of DC) yesterday. Aside from test drives at the dealership, this is the first XC we've seen on the road. She was admittedly jealous as we continue to watch from the sidelines. I'm sure the new owner will have a blast with the six inch snowfall in DC.
Comments
Can somebody please confirm / deny this? Thanks!
Newheels
The MDX is 2 yrs old, it still brings MSRP, or close in most markets.
With the low availability, and high demand/interest I think the XC90 will continue to bring MSRP for a while yet.
For the 04 version, don't look for many changes, probably more availability of the security pkg and bi-xenons.
Possibly a price increase?
The V8 was slated for the Elite/Executive edition of the XC90 so it won't be a volume option.
No word on when exactly it will be available.
Rumor has it that these packages will no longer carry this "discount", or at least be priced significantly higher....
Thanks for the input - btw we walked out without making an order.
When a dealer gets MSRP, they are making a SIGNIFICANT profit on the vehicle. Any dealership, in my mind, that ever asks above MSRP for a vehicle will not get my service. Why should I get taken advantage of? I do not subscribe to the "law of supply and demand" in this case. Sure, that law applies- but for MSRP. As a dealership, you are basically saying, "Hey, I can rip you off on this vehicle, so I am going to. I'll suck every dollar out of you for this car purchase, and on top of that- since $$ right now is all I care about- I'll probably forget about you until you need to spend more money with me."
I'm sorry- MSRP+ just doesn't cut it with me. Find an honest dealer- I'm certain they are out there. For example, we were able to find three Acura dealerships selling the MDX at MSRP- just didn't want to wait the amount of time for delivery. This hasn't been the case with the XC90 for us- at least not in the Northeast. Every dealer is MSRP around here, and some are even appologizing for it.
I'll give a quick story of an Infiniti dealer to make my point. I was cross-shopping the QX4 in 1998 with a few other SUV's. I walked into a local dealership in NJ, and upon introducing myself to the salesman, he recalled a car he sold to my grandfather 6 years earlier. Unbelievable. He then came out and told me that Infiniti was about to offer a cash to dealer incentive on the car, and that if I waited another few days I could save over $3000. Well, ended up purchasing below invoice, and if there is ever an Infiniti on my wish list he has my business......
So for any Volvo dealer out there trying to get a few more $$ right now.....good luck selling them their next car in 5+ years.
That's something that Acura has/had been unable or unwilling to do, much to the chagrin of buyers. Supposedly Acura is now targetting such dealers and threatening to lower their allocation, but that's just a rumor that I've not seen proof of.
Mercedes-Benz supposedly has the the ability, though that hasn't stopped an occasional bad story about dealership pricing practices.
If Volvo can clamp down, that'd be a very customer-friendly approach!
On the other hand supply and demand do enter into the equation.
We have had people offer to pay over MSRP if we could get them a car sooner.
Of course we had to decline.
There are dealers charging over,one was selling a car on ebay, don't know how the auction ended.
BY contrast we have had some people incensed that we are charging sticker for the car, seems they don't get the supply and demand equation either.
As for Volvos control over the dealers pricing policies. They don't have any. They can and do discourage gouging, but otherwise its up to the dealers discretion.
Mercedes is the opposite, they try to control the amount of discount a dealer gives. Give too much and lose some of your allocation.
Personally I like that approach
Best advice, don't buy if the price isn't right.
i happened to surf and search through ebay.com and one xc90 reservation is being auctioned and already been up for bid to the tune of $ 4,959.00. more will be on the waiting list as the word is out that the xc90 is motor trend's 2003 suv of the year.
so now start shopping your wish list for add-ons to your vehicle (for example: wheel molding, door edge molding, bumper scuff protector, body side molding, pinstripes, cargo mats, floor mats, etc. where they can be easily purchased from your pep boys or rs strauss outlets). don't forget that the xc90 doesn't look like it is a complete package without the roof rails/cross bars or the rear skid plates (these 2 you have to buy from your volvo dealership). bi-xenon lights can be added later on.
i will get delivery of my xc90 on 3rd week of december, just in time for christmas (i have the black sapphire 2.5t awd with taupe leather complete with premium, versatility and climate packages).
You are in luck - the T6 I drove showed a GVWR of 6080 lbs. Perfect!
your uncontrollable spending habit! What does it
mean when you see an nuthead pay a lot more
than a stick price? What proportion of the
population are a nuthead? Luck for you? Maybe for
the company.
I posted on this topic some time ago as there are quite a few people including myself in this category.
The only numbers I've seen on GVW for the XC90 show that only the T6 AWD with 7-seat configuration breaks the magic 6,000 lb number for GVW. I'll picking up one or two (for business purposes) next year when supply comes closer to demand and I can deal.
-rollie
I looked at the interior which was not impressive at all. The fake wood looked terribly fake (like shelf paper). I was only interested in the T6 since I once drove the T5 engine in the S60 and it felt ok with a little turbo lag in the lower rpm range. When I found out that the 4 speed transmission (in the T6) was made by General Motors that made me CRINGE!! Ford owns Volvo but won't use Ford's parts bin? I realize that due to size constraints they had to get a different transmission but that is unacceptable in this segment. The car has some nice safety features and received the SUV award but that doesn't sway me. Motor Trend also gave that award to the Renault Alliance in the 80's... it means NOTHING!! How about the Infiniti FX45? Same price, similar segment, V8 power and Japanese reliability? Glad I passed...
Well, understanding that everyone has their own opinion, mine is that it fits in very nicely with what I would expect out of a $40,000 vehicle.
Are there more luxurious interiors available in SUVs? Sure. But I personally am not purchasing an SUV purely for the luxury appointments- I am purchasing one because it fits my needs. I'd love to drive around in a BMX 330xi, but it just isn't practical with a family.
At this point, my needs are space and enough luxury that my wife will enjoy spending most of her days inside of the particular vehicle we purchase. We love the X5, but cargo room is non-existent. Ditto the RX300. We hate the looks of the Mercedes. We currently drive the QX4, and although it's been a nice car, the safety of the XC90 really sways us there.
So, what it boils down to is the MDX and XC90. As far as quality interior and safety, the XC90 wins hands down, in our opinion. Which is why we have one on order........
Sure it would be great to have noticeably real wood trim, but at what cost? There are more expensive SUVs that people can buy to obtain that look. But even at that higher cost, do they match the other positive attributes of the XC90?
Everybody has their own priorities. My current ones are met with the XC90.
T6 with 7 passenger seating.........6080 pounds
2.5T with 7 passenger seating.......6005 pounds
Therefore, if you go with the 7 passenger seating either version of the XC90 is over the magic 6000 pound limit.
Cars used for business are subject to a special reduced section 179 limit ($3,060 for autos purchased in 2002). The already-puny allowance is further reduced by any personal use. To wit: The deduction for a new $40,000 Lexus sedan used 75% for business is an almost laughable $2,295, or about 5% of the car's cost.
But if you find a "heavy" sport utility vehicle (SUV), pickup or van that rings your chimes and buy it before year's end, it's a whole different — and much better — story.
According to IRS regulations, a passenger vehicle is considered a "truck" for tax purposes when it has a gross vehicle weight rating (the manufacturer's maximum weight rating when loaded) over 6,000 pounds. Truck status means very favorable depreciation rules when the vehicle is used over 50% for business. Some popular SUVs pass the truck test; the Chevrolet Suburban and Ford Excursion are the beefiest examples. There are quite a few others, and a bunch of pickups and vans qualify as well. So ask dealers about models that fit the bill.
Now, let's get specific about the tax advantages. Say you buy a new $35,000 Suburban this year to be used 100% in your sole proprietorship business. As long as you put that hunk of metal to work before Dec. 31, 2002, you can bag a whopping $24,000 section 179 deduction (assuming no other equipment additions for this year). Next, you can claim an additional $4,800 under the first-year 30% bonus depreciation break [($40,000 - $24,000) x 30% = $4,800]. Finally, you can deduct the remaining $11,200 of cost over six years under "standard" depreciation guidelines ($40,000 - $24,000 - $4,800 = $11,200). In most cases, this means a 20% first-year write-off, based on remaining cost, which adds another $2,240 worth of depreciation (20% x $11,200 = $2,240). So your total first-year write-off for that new Suburban is $31,040, which amounts to an amazing 78% of its purchase price ($24,000 + $4,800 + $2,240 = $31,040). That sure beats the wimpy $3,060 first-year write-off for a "regular" car costing the same amount. Another plus: Heavy SUVs, pickups and vans also escape the 3% luxury tax on passenger vehicles priced over $40,000.
I found the T6 steering very light at low speeds, and more firm with greater "feel" at higher speeds. The 2.5T will give you more "feel" at low speeds. It is all a matter of preference.
Obviously I need to consult a tax advisor, but say if I buy a >6000 lb GVWR SUV before year end, can I then deduct 100% of the allowed depreciation even if I've only used it for say 5% of my business miles (I am using IRS mileage 36.5 cents/mile now) for 2002? What about in 2003? Are the only deductions allowed: service, insurance, gas etc, as I have taken the bulk of the deductions in 2002? Any limits on how long I need to keep the vehicle in business use or can I buy another XC90 in 2003:)?
Thanks for any input!
I actually have a dealer that will honor an X-Plan purchase if the XC90 is eligible. However, the same dealership has not been told of December availability, but rather late summer of 2003. Also, the dealership will only honor X-Plan purchase on in-stock vehicles, not ordered vehicles (although Ford X-Plan applies to both cases). And they have to service all of their MSRP customers first before X-Plan purchasers. So, if they do have an XC90 in stock and an MSRP customer wants it, that customer gets it.
Overall, it will be hard to find a dealership willing to sell you an XC90 at X-Plan prices even when the vehicle becomes eligible. And this should be expected. Realistically, I think that late summer 2003 may be a good guess. But, then again, YMMV (your mileage may vary).
Wallpaper available at:
http://www.dawgpak.com/xc90/
Sir, what is your source of data on the Freestyle? My research on Ford and Edmunds.com has turned up zero. If it's essentially the same as the XC90 and most of us are willing to wait for the spring 2004's come out anyway, why not add the Freestyle to a list of new rigs with greater price negotiability?
Rob D. from Sterling, VA
Love it so far. Compares favorably to my BMW X5, but with more room.
I'll update more as I drive it more. It's snowing like crazy here today, so it will stay in the garage for now.
Anyway, we love it! We actually drove it off the lot in a snowstorm, so we put it to work right off the bat. Other than pulling it into the driveway dirty (half the fun of a new car is the smell and shine!), we had a 100% satisfying experience. The non-premium sound system is excellent, as we played around with the changer a little on the ride home to get the feel of it. THe dash controls are a little confusing at first, but easily figured out.
Comfort is first class. Extremely comfortable seats, and we took it on a 3 hour jaunt over the weekend. Seat warmers heated up in about 3 minutes to a nice warmth, and overall ride is excellent.
A few things that we don't love, but are not real issues- no ashtray in front. You need to order as an option, and it takes the place of cupholders in the middle console. We don't smoke, but usually use the ashtray for small trash, etc. Not a major issue, since there is still a 12-volt lighter for car phone, radar, etc., but a little confusing. Also, the rear window is heavily tinted- tough to see what type of car is behind you, but I guess it's not bad that you won't be blinded by bright lights or larger trucks.
Anyway.......truly love our new XC90 and can't wait to drive it more! Also, as an aside, we had never considered Volvos in the past. Just never thought to. While in the dealerships, we looked and sat in the S60 and S80, and were duly impressed. Our Audi A6 lease comes up next year, and we will consider a Volvo sedan....
Since you mentioned seat warmers and playing around with the changer, I think your XC90 has the Premium and Climate Packages. Did you get the Bi-Xenons?
Yes, our vehicle has the Premium and Climate Packages. We would have loved the Bi-Xenons, but unfortunately did not get them. We hit a dealership right after they got a cancellation on one of their first XC90's, and jumped on the car- as it was pretty much what we were looking for. Also has the 17" wheels, which I think enhances the look nicely.
Additionally, might have preffered the mettalic black instead of the regular- as well as a NAV system......but, at $39,430 we were very happy with what we received!
Gassed it up today at a local station, and had the mechanics come out and start looking under the hood, etc.. It was fun.
I recommend doing it right here! :-)
tidester, host
I highly recommend the Overseas Delivery.
on XC90 in the ED plan. Did you get anything?
Or I'm missing something.