2016 Volvo XC90 Lease Questions

Testing123

So, if a dealer proposes 39 months lease, I should check to see if the RV and MF change or what. Thanks Michaell

Michaell

Testing123 said:

So, if a dealer proposes 39 months lease, I should check to see if the RV and MF change or what. Thanks Michaell

Exactly.

Testing123

Thanks a ton Michaell

Testing123

Hi guys, I have some good news for you.
Test drove a Q7 - liked the drive but hated everything else from looks to packages and pricing - then ended up going to our local Volvo dealer and ordered one.

Inscription with
Climate, Convenience, and Vision Pkgs
Booster seat and Air Suspension
BW sound with CD Player.
Apple Carplay

MSRP: $66605
Invoice: $63168
Ordered it for: $63500 + tax +title (that is about $3105 off MSRP).
Est for delivery: 3 months.

January MF as provided by the dealer after looking up in her book is .00141. it sucks so I might end up buying it IF by the time the car comes and the rates continue to suck.

Testing123

Do note that Remote Starter is provided as complimentary for year 1 and thereafter, I was told that it becomes a Subscription service of approximately $400-$500 for 5 yrs. I do not like it but it is what it is.

rboilard

Agree paying for the Volvo connect after the year will stink. My wife does like the texts she gets from her car telling her it's unlocked and the other features. So eventually between Volvo connect, satellite radio, and a possible charge from At&t for WiFi, things could get expensive.

saint_cabbage

So where are we on the January lease numbers?
Momentum
36/12
Tia!

Michaell

saint_cabbage said:

So where are we on the January lease numbers? Momentum 36/12 Tia!

We didn't get any Volvo numbers this month. 

saint_cabbage

Michaell said:

saint_cabbage said:

So where are we on the January lease numbers?
Momentum
36/12
Tia!

We didn't get any Volvo numbers this month. 

I got quoted .00120 / 56% on a 36/12 and .00141 / 55% on a 39/12

Seems pretty straight w/ 2600 off MSRP.

Michaell

saint_cabbage said:

Michaell said:

saint_cabbage said:

So where are we on the January lease numbers?
Momentum
36/12
Tia!

We didn't get any Volvo numbers this month. 

I got quoted .00120 / 56% on a 36/12 and .00141 / 55% on a 39/12

Seems pretty straight w/ 2600 off MSRP.



Can't be 100% certain, but those MF look like the base rates, and not marked up for a new model.

saint_cabbage

Michaell said:

saint_cabbage said:

Michaell said:

saint_cabbage said:

So where are we on the January lease numbers?
Momentum
36/12
Tia!

We didn't get any Volvo numbers this month. 

I got quoted .00120 / 56% on a 36/12 and .00141 / 55% on a 39/12

Seems pretty straight w/ 2600 off MSRP.

Can't be 100% certain, but those MF look like the base rates, and not marked up for a new model.

I'm buying the car in less than an hour based on those figures, so lucky me?

Testing123

EuroNCAP Crash Test Ratings.

lisat91403

I was just quoted

36/12 = .00123/51%
36/15 = .00123/49%

I'm not surprised by the MF, but aren't those residual values extraordinarily low?

Michaell

lisat91403 said:

I was just quoted

36/12 = .00123/51%
36/15 = .00123/49%

I'm not surprised by the MF, but aren't those residual values extraordinarily low?

They are what they are; dealer can't modify them.

lisat91403

Michaell said:

lisat91403 said:

I was just quoted

36/12 = .00123/51%
36/15 = .00123/49%

I'm not surprised by the MF, but aren't those residual values extraordinarily low?

They are what they are; dealer can't modify them.

Yeah, I wasn't suggesting that the dealer modified them...just expressing my shock. Looks like values a couple of months ago were much higher, and these numbers are also much lower than the MDX (the other vehicle I was considering). Volvo is not making this easy for me.

Michaell

lisat91403 said:

Michaell said:

lisat91403 said:

I was just quoted

36/12 = .00123/51%
36/15 = .00123/49%

I'm not surprised by the MF, but aren't those residual values extraordinarily low?

They are what they are; dealer can't modify them.

Yeah, I wasn't suggesting that the dealer modified them...just expressing my shock. Looks like values a couple of months ago were much higher, and these numbers are also much lower than the MDX (the other vehicle I was considering). Volvo is not making this easy for me.

Volvo tends to accurately reflect the future value of its cars through the residual. Other brands may inflate them for better lease payments.

Testing123

Guys: Couple of things:
1. I canceled my order for 2016 XC90 at a price of $63500 (details provided above for the specs). I was told by at least two dealers that 2017 orders will begin between Feb and March sometime. Changes expected in the 2017 are power third row seats and possbily next generation park assist pilot which can self drive up to 80 miles an hour (like the new S90 released at Detroit Auto Show). And other minor changes.
2. I am skipping the lease thing and and am going with overseas delivery option. The cost reduces by about $2600 off MSRP (incl desination fee waived) plus two air tickets to Gothenberg and one night stay, volvo museum or volvo factory tour. Read great reviews about it.
Will post more later once i order 2017.
Lastly, the lease rates continue to suck but based on my analysis, the dealers are inundated with Momentums so once the 2017 orders begin, you can expect $3000 to $4500 off of vehicles on the lot and good deals on lease numbers.

rboilard

Power third row would have been nice…….my wife misses that. I agree that as the year proceeds the deals will get significantly better. Wonder if Volvo over played their hand thinking demand was going to be better.

lisat91403

Testing123 said:

Lastly, the lease rates continue to suck but based on my analysis, the dealers are inundated with Momentums so once the 2017 orders begin, you can expect $3000 to $4500 off of vehicles on the lot and good deals on lease numbers.

I hope you are right! I am waiting. I really want the XC90, but I am extremely wary of purchasing the first model year of a car. I want to lease it. But the lease terms are terrible. In very general terms, we are looking at $800/mo lease payments on a $50k car. Makes no sense.

So I shall be patient, and hope that something will give when the 2017's start to roll out, or when inventory catches up to demand.

Testing123

lisat91403 said:

Testing123 said:

Lastly, the lease rates continue to suck but based on my analysis, the dealers are inundated with Momentums so once the 2017 orders begin, you can expect $3000 to $4500 off of vehicles on the lot and good deals on lease numbers.

I hope you are right! I am waiting. I really want the XC90, but I am extremely wary of purchasing the first model year of a car. I want to lease it. But the lease terms are terrible. In very general terms, we are looking at $800/mo lease payments on a $50k car. Makes no sense.

So I shall be patient, and hope that something will give when the 2017's start to roll out, or when inventory catches up to demand.

You do know that Volvo offers Multiple Security Deposits (MSD) Program which means, you pay x number of dollars (refundable) as a deposit and it will bring your MF down. From Volvo XC90 brochure:

MULTIPLE SECURITY DEPOSIT LEASE*
A multiple security deposit lease allows you to place a lump sum refundable security deposit at lease inception,
which reduces your monthly rent charge resulting in substantial savings over the term of the lease. The
additional security deposits are refunded to you at the end of the lease term.
*Please contact your local Volvo car retailer for detailed information on Volvo Car Financial Services Programs. Security Deposit Program is not available in NY. Excess Wear and Use Protection Plan is optional and not available in AK, GA, KS, NM, NY, TX, UT and VT.

Michaell

Testing123 said:

lisat91403 said:

Testing123 said:

Lastly, the lease rates continue to suck but based on my analysis, the dealers are inundated with Momentums so once the 2017 orders begin, you can expect $3000 to $4500 off of vehicles on the lot and good deals on lease numbers.

I hope you are right! I am waiting. I really want the XC90, but I am extremely wary of purchasing the first model year of a car. I want to lease it. But the lease terms are terrible. In very general terms, we are looking at $800/mo lease payments on a $50k car. Makes no sense.

So I shall be patient, and hope that something will give when the 2017's start to roll out, or when inventory catches up to demand.

You do know that Volvo offers Multiple Security Deposits (MSD) Program which means, you pay x number of dollars (refundable) as a deposit and it will bring your MF down. From Volvo XC90 brochure:

MULTIPLE SECURITY DEPOSIT LEASE*
A multiple security deposit lease allows you to place a lump sum refundable security deposit at lease inception,
which reduces your monthly rent charge resulting in substantial savings over the term of the lease. The
additional security deposits are refunded to you at the end of the lease term.
*Please contact your local Volvo car retailer for detailed information on Volvo Car Financial Services Programs. Security Deposit Program is not available in NY. Excess Wear and Use Protection Plan is optional and not available in AK, GA, KS, NM, NY, TX, UT and VT.

While this is true, the amount the payment is reduced by is, maybe, $30-50 each month. Still pretty expensive lease payment for a $50-60K vehicle.

lisat91403

You do know that Volvo offers Multiple Security Deposits (MSD) Program which means, you pay x number of dollars (refundable) as a deposit and it will bring your MF down. From Volvo XC90 brochure:

MULTIPLE SECURITY DEPOSIT LEASE*
A multiple security deposit lease allows you to place a lump sum refundable security deposit at lease inception,
which reduces your monthly rent charge resulting in substantial savings over the term of the lease. The
additional security deposits are refunded to you at the end of the lease term.
*Please contact your local Volvo car retailer for detailed information on Volvo Car Financial Services Programs. Security Deposit Program is not available in NY. Excess Wear and Use Protection Plan is optional and not available in AK, GA, KS, NM, NY, TX, UT and VT.

I wasn't aware of this, so thank you very much for the info! I will keep it in mind for the future. I'm hoping things will be more favorable in 3 months or so.

Testing123

Several XC90 owners have been complaining that water is leaking from the sunroof causing damage to headliner, etc. This is an ongoing issue and so far there is no TSB on this. Frustrated owners' have been posting pictures and comments here:

http://support.volvocars.com/forum/topic252-xc-water-leaks.aspx#

http://forums.swedespeed.com/showthread.php?279177-XC90-repurchase-pending-should-I-stay-with-Volvo-or-go-elsewhere&highlight=xc90+leak

Not sure why Edmunds is not covering this issue.

era123

Anyone have info on the new T5 FWD in South Florida for 10k miles?

kdrareg

Can you please provide Feb-16 MF and RV for 2016 T6 Momentum and R-Design? And incentives too. Thank you.

Michaell

era123 said:

Anyone have info on the new T5 FWD in South Florida for 10k miles?

kdrareg said:

Can you please provide Feb-16 MF and RV for 2016 T6 Momentum and R-Design? And incentives too. Thank you.

Sorry no Volvo numbers this month.

kdrareg

Thank you for your assistance.

sjd103049

Anyone care to comment on what the dealer is doing here? I thought I had a good deal negotiating ~3k off MSRP.

kyfdx

sjd103049 said:

Anyone care to comment on what the dealer is doing here? I thought I had a good deal negotiating ~3k off MSRP.

You can't really tell what's what, because:

The tax quote is for a purchase, not a lease (in CA, right?).
There is no mention of the CAP cost
No accounting for the acquisition fee
No money factor or residual information.

Basically, they gave you a purchase number (including $289 for etching.. useless), but then gave you no lease information, other than the payment. You don't know what you might be giving back to the dealer, to make up for that good discount.

sjd103049

kyfdx said:

sjd103049 said:

Anyone care to comment on what the dealer is doing here? I thought I had a good deal negotiating ~3k off MSRP.

You can't really tell what's what, because:

The tax quote is for a purchase, not a lease (in CA, right?).
There is no mention of the CAP cost
No accounting for the acquisition fee
No money factor or residual information.

Basically, they gave you a purchase number (including $289 for etching.. useless), but then gave you no lease information, other than the payment. You don't know what you might be giving back to the dealer, to make up for that good discount.

I was baffled. It appears they tried to pull the wool over my eyes. Using an MSRP of $50,955 I calculated a payment of ~$680 without a penny down using 57% for 39/10 and .00140. Not sure if that's accurate but the dealers tactics thus far seem to tell me everything I need to know about doing business with them.

lhs976

from what i can tell based off that, pre tax payment should be around $651 (all options and fees added) and then with tax ($~49/month) $700. They're hiding a little over thousand dollars somewhere in my opinion.

humphreyr

Any info on the residual and MF for a T5 Momentum, 39 or 36, 10K or 12K? I live in TX.

Michaell

humphreyr said:

Any info on the residual and MF for a T5 Momentum, 39 or 36, 10K or 12K? I live in TX.

We didn't get any Volvo lease numbers for February, sorry.

twinlabs

Michaell said:

humphreyr said:

Any info on the residual and MF for a T5 Momentum, 39 or 36, 10K or 12K? I live in TX.

We didn't get any Volvo lease numbers for February, sorry.

does that mean we should use Jan. numbers?

Michaell

twinlabs said:

Michaell said:

humphreyr said:

Any info on the residual and MF for a T5 Momentum, 39 or 36, 10K or 12K? I live in TX.

We didn't get any Volvo lease numbers for February, sorry.

does that mean we should use Jan. numbers?

No, the January numbers have expired. The dealers have updated numbers; we never got them.

graniteland

I was quoted the following today on a lease for an XC90 Momentum Plus. Feedback? Good, Bad, So So? No sales tax in my state. Thanks!

MSRP $57,700.
Selling Price: $54,251
Money Factor: .00062
Residual Value: $30,577
36months/12,000 miles per year
$749.79 per month
with just first payment down.

graniteland

I also have a 2004 Toyota Sienna XLE FWD in good condition with 120K miles in fair condition. Hoping to get about $5000 in a trade-in.

If I got $5000 and put all of it into this lease, what monthly payment would I be looking at?

Would consider buying the XC90 at lease end if the value is there, but not sure how this offer stacks up to what others have received.

Michaell

graniteland said:

I was quoted the following for 36/12K lease on an XC90 Momentum Plus. Feedback? Good, Bad, So So? No sales tax in my state. Thanks! MSRP $57,700. Selling Price: $54,251 Money Factor: .00062 Residual Value: $30,577 36months/12,000 miles per year $749.79 per month with just first payment down.

We don't have any Volvo numbers this month, so we can't confirm the MF and residual. 

However, what is the net cap cost after all the fees have been rolled in?

Michaell

graniteland said:

I also have a 2004 Toyota Sienna XLE FWD in good condition with 120K miles in fair condition. Hoping to get about $5000 in a trade-in. If I got $5000 and put all of it into this lease, what monthly payment would I be looking at? Would consider buying the XC90 at lease end if the value is there, but not sure how this offer stacks up to what others have received.

Every $1000 would lower the pre-tax payments about $28/mo. 

But, we don't recommend that course of action. If the car is stolen or totaled, you would lose that money. Have the dealer cut you a check for the equity. 

It rarely makes sense to buy out a lease - if your intention is to keep the car long term, might as well buy it initially. 

graniteland

Michaell said:

graniteland said:

I was quoted the following for 36/12K lease on an XC90 Momentum Plus. Feedback? Good, Bad, So So? No sales tax in my state. Thanks!

MSRP $57,700.
Selling Price: $54,251
Money Factor: .00062
Residual Value: $30,577
36months/12,000 miles per year
$749.79 per month
with just first payment down.

We don't have any Volvo numbers this month, so we can't confirm the MF and residual. 

However, what is the net cap cost after all the fees have been rolled in?

$54,251 selling price which includes $695 Acquisition Fee.
$372 Doc Fee
$27 title
$469 Registration Fee
No Sales Tax
Disposition Fee $395. Told by dealer that I would only pay this at the end if I terminated my lease early.

kyfdx

graniteland said:

Michaell said:

graniteland said:

I was quoted the following for 36/12K lease on an XC90 Momentum Plus. Feedback? Good, Bad, So So? No sales tax in my state. Thanks!

MSRP $57,700.
Selling Price: $54,251
Money Factor: .00062
Residual Value: $30,577
36months/12,000 miles per year
$749.79 per month
with just first payment down.

We don't have any Volvo numbers this month, so we can't confirm the MF and residual. 

However, what is the net cap cost after all the fees have been rolled in?

$54,251 selling price which includes $695 Acquisition Fee.
$372 Doc Fee
$27 title
$469 Registration Fee
No Sales Tax
Disposition Fee $395. Told by dealer that I would only pay this at the end if I terminated my lease early.



That's not true about the disposition fee. It's due at lease end. Waived, if you lease another Volvo.

graniteland

I just received a second lease quote from a different dealer on another 2016 XC90 Momentum trim. I just noticed that both vehicle descriptions list the Protection Plus Pkg which includes glass repair, dent repair, tire damage, etc... This is a useless adder to me since I get similar coverage on my State Farm insurance policy. I assume I can reject this and lower the car cost. Anyone know how much this costs or a range this protection plan runs?

BTW...any March numbers from Volvo?

danmgy11

graniteland said:

I just received a second lease quote from a different dealer on another 2016 XC90 Momentum trim. I just noticed that both vehicle descriptions list the Protection Plus Pkg which includes glass repair, dent repair, tire damage, etc... This is a useless adder to me since I get similar coverage on my State Farm insurance policy. I assume I can reject this and lower the car cost. Anyone know how much this costs or a range this protection plan runs? BTW...any March numbers from Volvo?

I'm just about to start the process of leasing an XC90, can you share what numbers you're getting from both your dealerships?

Also, that package the  are trying to stick you with is SO USELESS, I put it at the equivalent of getting undercoating or paying for nitro filled tires!  

graniteland

Scroll up a couple of posts for my first lease quote. I don't have the second quote in front of me (work email) but I will post later.

Michaell

 We did not get any numbers from Volvo, this month. 

vustadumas

Hello!

I've been shopping for a 2016 XC90 R-design. 10K / 36m lease. MSRP $56,600 (have not worked any numbers yet with dealer, so cap cost should come down a bit)

Do these quoted numbers sound right to you guys?

.00093 MF 52 - 55% residual?

The residual seems very low to me. I was expecting closer to 60%

With that residual, I think buying might be the better option.

Thanks for any info!

Michaell

vustadumas said:

Hello!

I've been shopping for a 2016 XC90 R-design. 10K / 36m lease. MSRP $56,600 (have not worked any numbers yet with dealer, so cap cost should come down a bit)

Do these quoted numbers sound right to you guys?

.00093 MF 52 - 55% residual?

The residual seems very low to me. I was expecting closer to 60%

With that residual, I think buying might be the better option.

Thanks for any info!

We did not get any Volvo numbers for March, sorry.

danmgy11

vustadumas said:

Hello! I've been shopping for a 2016 XC90 R-design. 10K / 36m lease. MSRP $56,600 (have not worked any numbers yet with dealer, so cap cost should come down a bit) Do these quoted numbers sound right to you guys? .00093 MF 52 - 55% residual? The residual seems very low to me. I was expecting closer to 60% With that residual, I think buying might be the better option. Thanks for any info!

I've been in the market looking at a number of cars and I can tell you that those numbers aren't that bad in general compared to MB, BMW and Audi (Acura and Infiniti are way better). The dealership can't change the residual value only the money factor and the MF you listed seems pretty good (but you're right RV does seem low). If you wanted to even make it lower you could take advantage on the multiple security deposits (if you have the money I believe it as a great value). Depending on where you are located you will have better luck that others for the MSRP. I've personally have quotes of more than $2k difference from completely different markets (haven't gotten lease numbers yet). Please let me know what you deal you get, if you can, so I know closer what the market is doing.

vustadumas

Got info from another dealer today.

MF .00120 58% RV (10K/36m)

Their car is fully loaded with every single option, most of which, I don't want or need. So the MF might be bumped up a bit by this dealer, but the residual is more in line with what I was expecting. MSRP on their cars is definitely on the high end.

danmgy11

vustadumas said:

Got info from another dealer today. MF .00120 58% RV (10K/36m) Their car is fully loaded with every single option, most of which, I don't want or need. So the MF might be bumped up a bit by this dealer, but the residual is more in line with what I was expecting. MSRP on their cars is definitely on the high end.

That's kind of what I've been experiencing with little to no discount off MSRP. If you're not in a rush you could always order the specific model you want. 

That MF is crazy high, I'd rather that other residual with that low MF. 

Good luck!