2013 and earlier Volvo XC90 Lease Questions

CarMan@Edmunds

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Volvo XC90. Thanks.

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glockfan

Carman,

Please give me an idea on a 36 month lease for XC90 V8 with Touring, Convenience and Climate pkg. I was given a lease quote of $620 a month incl tax for 36months for 15k miles per year with $1k down. I believe the selling price was approx $45k with msrp of around $54k. My sales tax is 7%. Is this a good deal?? Thanks.

CarMan@Edmunds

Hi glockfan. Let's work up a lease payment on the truck that you are interested in using Volvo Finance's actual September lease program and see what we come up with. According to my calculations, if you were to lease a 2006 Volvo XC90 V8 with an MSRP of $54,000 and a selling price of $45,000 through Volvo Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $593. With a $1,000 down payment, the monthly payment for an otherwise identical lease would drop to around $562. As you can see, these payments are considerably less than the one that you were quoted, probably even after tax is taken into account, so something does not add up. Ask your dealer if they are using Volvo Finance's buy rate lease money factor of .00330 to calculate your truck's lease payment. This factor is already bad enough, it would be worse if the dealer that you are working with was marking it up to add additional back-end profit to your deal.

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johns3

What is a good lease price for the 2006 XC90 2.5T AWD. Lease term is 36 month, no money down, 16,500 miles per year. Tax rate is 7.25%.

CarMan@Edmunds

HI johns3. I would be happy to give you an idea of how much it should cost to lease the vehicle that you are interested in. However in order for me to do so I need you to tell me its full MSRP and give me an approximate selling price for it. All of that information is available here at Edmunds.com. You can find its MSRP in the New Vehicle Pricing section of this site and you should be able to get an idea of how much you should pay for this truck right now by visiting the following discussion: "Volvo XC90: Prices Paid & Buying Experience".

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cv2006

Hi Carman,

We are looking to lease a 2006 XC90 2.5T. What would be a good lease payment? At one dealership, we were quoted an approximate monthly payment of $497-$530 plus tax, $730 in inception fees for a 4 year term with 12K miles per year. Another dealership quoted us a monthly payment of $529 plus tax and $1500 in inceptions fees. The MSRP is $47,620 and the approximate selling price was under $44K. This is the first timethat we are considering a lease, so we need help.

Thanks!

Rita

CarMan@Edmunds

Hi Rita. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

I would be happy to estimate what your lease payment should be like for you on the XC90 that you are considering. According to my calculations, if you were to lease a 2006 Volvo XC90 2.5T AWD with an MSRP of $47,620 and a selling price of $44,000 through Volvo Finance right now for 48 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $634. As you can see, both of the lease payments that you were quoted look attractive to me.

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flben

Hi Car_man,

I am interested in leasing a XC90 2.5T with 3rd row seat for 36 month with 12K miles per year. MSRP including all fees is $41958.00. the selling price is $38800.00. what should my monthly payments be with 0 cost Cap. reduction and considering the volvo's current incentive?

Thanks.

merckx

You mean the XC90 is currently typically selling for $9,000 off MSRP? I wouldn't think the discount would be quite that high...

lmueller

I just leased a 2006 XC90 2.5T FWD, premium and versatility packages yesterday. Lease is 42 months, 12K/year. With no additional cap cost reduction, our payment would have been $510. We put $2K down to make the payments $450. Had a great, easy transaction. The dealership worked very hard to earn our business. Even had other dealers tell us if we could get the car for that, then do it (so we did). Hope this helps a little bit. BTW, the MSRP on the car was $41,430 (no metallic paint). Good luck!

CarMan@Edmunds

I'd be happy to estimate what this vehicle's lease payment should be for you, flben. According to my calculations, if you were to lease a 2006 Volvo XC90 2.5T AWD seat with an MSRP of $41,958 and a selling price of $38,800 through Volvo Finance right now for 36 month with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $582.

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CarMan@Edmunds

Hi merckx. I was only using the MSRP and selling price that the poster I was responding to told me they were quoted. You are absolutely right, there's no way that anyone is getting a $9,000 discount on this model right now.

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CarMan@Edmunds

Thanks for taking the time to share the details of your lease with everyone, lmueller.

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jginnyc

I've got a 2 year old XC90 on a 4 year lease with incredibly low mileage for its age (I'm about 10k under my limit). I would be interested in approaching a dealer and seeing if they would be willing to take my existing vehicle and get me into a 2006 XC90. I suspect that with the low mileage, the car is quite attractive to the dealer as he could re-sell it quickly.

I've noted that the monthly lease costs for the new model would actually be lower than my current lease due to some Volvo incentives. I've received mixed feedback on the feasibility of getting out of the current lease and leasing a new XC90. Can you offer any advice? My lease was dealer arranged through a bank.

sam1116

Car_Man, I've recently been offered the following deal:

2006 Volvo XC90 2.5T FWD
Premium Package
Versatility Package
Premium Sound Package
4 yr./50K Warranty
MSRP: $42,180
Invoice: $39,276

LEASE
36 months @ $479 + tax
45,000 Total Miles
$2000 Due at Signing

Is this a good deal? Thanks, SAM1116

merrill4

I've recently been offered the following deal:

2006 Volvo XC90 2.5T
AWD w/ Instant Traction
Metallic Paint
Premium Package
Versatility Package
Convenience Package
Navigation
Climate Package

MSRP: 47,770
Sales Price (w/out tax): 41,800

Lease terms: 36 months/45,000 miles
$675/mo including tax

Upfront costs: 1st month payment, refundable security, registration fee, bank fee: $2240.

The TGV for this car as equipped is 44,301. There is a current promotion that makes the premium package (invoice $2575) "free." Backing this out of the TGV, I arrive at 41,736.

The lease terms seem very high to me. Your advice is appreciated.

Thanks.

davin

Car_Man,

I am looking to lease the above for a 36 month lease and 12,000 miles per year. I spoke with two different dealers in the Philadelphia area and they are both quoting lease prices with U.S. Bank as the lender, rather than Volvo Finance. The vehicle I am interested in would have:

Premium Package
Climate Package
Versatility Package
Convenience Package
Xenon Headlights
Dual Screen DVD Player

The residual being used is 56%. I am trying to find out what a competitive money factor is. The details of the lease are:

$1,500 out of pocket at signing (no cap cost reduction)
$536/month, which includes tax

I believe the selling price is approximately $41,000, but I do not have the exact number. Can you please let me know what a competitive money factor is and whether you think this lease is attractive. I apologize for not having the exact selling price. Thank you.

CarMan@Edmunds

Hi SAM1116. You never mentioned the selling price of the XC90 that you are interested in leasing. This is an important number 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 the price of the truck that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary 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 the selling price is.

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CarMan@Edmunds

Hi merrill4. Let's work up a lease payment on the truck that you are interested in using Volvo Finance's actual lease program and see what we come up with. According to my calculations, if you were to lease a 2006 XC90 2.5 AWD with an MSRP of $47,770 and a selling price of $41,800 through Volvo Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $614. It is difficult for me to say exactly what this payment would be once tax is added in, but it is a lot closer to the high payment that you were quoted than I though it would be. Unfortunately, Volvo's lease program on the XC90 is just not very good right now.

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CarMan@Edmunds

Hi davin. I am not surprised that the dealers that you have visited are quoting you leases that are being run through a bank other than Volvo Finance. Volvo's lease program on the XC90 is not very good right now. Its current buy rate lease money factor for the 2006 XC90 2.5T AWD is .00285 for 36 months. This is equivalent to an interest rate of around 6.84%. You should be able to do better than this through an independent bank.

The lease payment that you were quoted actually does not look that bad to me. I've seen much higher numbers being quoted to consumers on this vehicle. It is difficult to give you my full opinion on this deal though without knowing the full MSRP of the XC90 that you want. Without this number, I can't see how much of a discount you are being given on it.

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wvufan2

Hi Car man,
What do you think of this deal?
2.5T XC90
versatility,premium,convienence packages, premium sound,dvd entertainment with MSRP of 46,500, invoice of 41,900.
Lease for 36 months/15,000 a year,$4000 down payment, monthly payments between $550-575 . Can I do better, or is this a fair deal, thanks.

Helpless in Houston

paulavalgal

Car Man,
I am purchasing a car for the first time without my dad...on my own so I am afraid I may be taken advantage of since I am a woman. Is the following a good deal?

2006 XC90 2.5 AWD, metallic paint, leather, Premium Package, Versatility Package and Convenience Package for $38,000 (the MSRP was $44,535).

Should I go for it? By the way I am in Boston.

brits

I have a S-80 coming of lease and have been offered the following on a 2006 XC 90 2.5T. The vehicle has premium and versatility package and is stickered at $41,908. They are going to sell me the car for $36,021. They also told me if I lease it with Chase they have some tax credits for me. Only first payment out of pocket for 36months 15k a year $576 a month including all taxes. Does this sound like a fair deal. I am only paying $517 a month on my S-80 and was close to the same price. Credit score is 820.

Thanks in Advance
Mike

jabber

Carman or anyone else,

I've been told by a Volvo dealership that on a 2006 2.5T AWD:

36 months
Residual = 56%
MF = .0023

The residual seems low and the MF high...can anyone confirm this?

Also, the salesman told me I would have to pay $877 in gap insurance. I've been leasing for a long time and have never paid for gap insurance, it's always been included as part of the terms of the closed end lease contract. Can you confirm whether this is a disingenious attempt to pad the dealer's profit.

All that aside, the price seems to be okay at $3K under invoice.

jacmyoung2

In N. CA, 2006 XC90 2.5T AWD, MSRP $44,500? including Dest, selling $38,958, prem, vesa, climt, 48mo, 15,000K, 45%, 0.00198, $500 out of pocket and $528/mo. + Tax.

We didn't think it was the bottom line but thanks to this site we knew it couldn't be bad. Mentioned Costco memebership the dealer (Winter Volvo in Sacto.) showed the invoice and their bottom line on the first try. All matched what we learned from here.

Our lease contracts in the past never mentioned gap insurance, and we were told by our insurance it is only useful for the first year.

jabber

Okay, I finalized this deal on new year's eve and believe it's more than fair (I hope - feedback would be appreciated).

Premium Package
Climate Package
AWD
Dual Screen Rear-Seat Entertainment

36 Months, 15K miles/yr
MSRP $44,250
Selling Price $37,296 (about $3740 under invoice)
MF: .0019 (Wells Fargo Platinum - FICO>745)
Residual: 55% although they residualized $850 worth of package discounts making the effective residual almost 56%
Rolled into lease NJ taxes, MV fees, Doc Fee, and $795 Acquisition fee.

$530 due at signing (first month's payment)
$530/month

I will also apply for $500 rebate through AAA mid-atlantic volvo program, basically making my first monthly payment $30.

jacmyoung2

Best lease deal I have seen so far jabber, congrats! I made a mistake, our MSRP was $43,550. We opted for the third seat instead of DVDs. Our selling price was $38,300 plus $495 acquisition fee. We did get two season ski passes worth $700.

I was told with AWD no chain is required in the snow, we'll see.

jacmyoung2

BTW jabber, can you give me some details on the AAA-Volvo rebate program? Is there a number to call for more info? Thanks

jabber

Volvo has affinity programs with various associations (AAA, Volvo Club of America, Bar Associations, Credit Unions, Trade Associations, etc).

Go to www.volvoprogram.com

Each association has it's own code that you'll need to register and obtain a form to file to get the rebate. As far as AAA is concerned, you need to be a member of a specific regional club that is part of the program. The code for AAA Mid-Atlantic is CDLFfc3. ** You have to have been a member of the association for at least 6 months prior to your purchase in order to qualify. **

jacmyoung2

Thank you so much jabber, I entered the site with the code you gave me, it returned with California State Automobile Association (I am a long-time CSAA member) rebate program, and the expiration is 01/03/06. I called the number and was told since I purchased the Volvo before 01/03/06, I should qualify.

I am mailing in my rebate request and see what will happen. Again thank you for the headsup.

BTW, before I tried your code, I called every organization I could think of, from Volvo, AAA to dealers, no one had a clue. Out of desperation, I decided to try your code and CSAA popped out right in front of me. So I wouldn't believe it until the check is in my hand.

jabber

jacmyoung2, that's interesting. Perhaps that's the general AAA code and then based on your zip code it determines which club you belong to. I'm sure you'll get the check - congratulations. You can send my finder's fee to my paypal account! ;-). Enjoy your XC90.

jacmyoung2

The terms and conditions seem to indicate as long as you are a US resident and a AAA member, bought the Volvo at a US dealer of your choice before 01/02/06, you qualify for the rebate, though the form header is CSAA so they could limit the recepient to CSAA members and the 6-month membership. You have 60 days from the date of purchase/lease to claim the rebate.

ursus

Does 59% residual/MF .00307/10K miles through Volvo Finance or 54% residual/MF .0028/12K miles through Chase sound right? Dealer told me there is $3,000 cash back from Chase. The residual seems to be low and MF is definetely high. On my current XC70 residual was 59% (in 2003) for 36 month lease and MF was around .0016. Should I wait for 2007 model and get a better deal? Will the residual be higher on 2007 model if leased in the fall? I will be going with the X-plan, but still want more off the invoice. There are no incentives available now. Are there?

Thanks.

sestesod

Anyone know the current money factor and residual value on a 2006 Volvo XC90 V8 AWD in MI? Thanks.

cooperd

I am in early negotiating stages with a dealer and have been offered the following numbers below. I was wondering if these numbers look good about right? In particular, I am wondering what if any areas I could likely get them to come down on, i.e. money factor, residual, etc.? Thank you in advance for your advice.

2006 XC90 2.5L Black exterior and taupe leather interior with the premium and versatility packages.

-$482 plus tax for 36 mths 15000 a year.
-$1000 total out of pocket( not down total ):
The $1000 due at signing is for first payment, which includes 1st month , tags, state and local fees, tire battery and lemon law. (Came to $1,200 but came down to $1,000.)
-The residual is 51% or $21675;
-The $$$ factor is .00201.

pfxc

CarMan,
Is this a good lease?

2006 XC90
AWD, Prem, 3rd row seats, Nav, vers pkg, wood steer wheel
36/12K yr.
Sticker $42,650
$39,850 cap cost
$4000 trade in value
$0 other down
$1000 DOD
US Bank .0019 MF
Residual 51%

Thanks in advance.

pfxc

CarMan,
Is this a good lease?

2006 XC90
AWD, Prem, 3rd row seats, Nav, vers pkg, wood steer wheel
36/12K yr.
Sticker $42,650
$39,850 cap cost
$4000 trade in value
$0 other down
$1000 DOD
US Bank .0023 MF
Residual 52%

$473.00 + tax

Thanks in advance.

CarMan@Edmunds

Hi sestesod. This vehicle's lease money factor and residual value vary depending upon how long you lease it for and how many miles per year you are allowed to drive it. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year, let me know if you want something different. According to the latest information that I have seen, if you were to lease an '06 Volvo XC90 V8 AWD through Volvo Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00309 and 59%, respectively.

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CarMan@Edmunds

Hi cooperd. You never mentioned the selling price or MSRP of the car 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 this car's selling price 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 on this lease if you let me know what these numbers are.

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CarMan@Edmunds

Hi pfxc. I believe that the XC90 that you described in your post has a spread of a little over $3,400 between its full MSRP and dealer invoice price. Volvo is currently providing $3,000 dealer cash on '06 XC90 AWD 5-Passenger and $3,500 on '06 XC90 7-Passenger models that are leased through independent banks, like the one that you mentioned. This gives a total profit margin of around $6,500 to $7,000 on this vehicle right now. You are only being given a discount of $2,800. As you can see, I think that you still have some room left to negotiate.

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jcat707

I remember sometime last time year Volvo was pushing leases through U.S. Bank. Now I see they are supporting leases through independent banks. Is there any reason why Volvo doesn't like to finance XC90s?

ldriscoll

Brand new to the lease world. Considering leasing:
2006 XC90 2.5T AWD (7 Pass) w/Climate,Vers,Conv,Premium
MSRP 45,825.00
Cap Cost: 38980
48 mo/12k yr
US Bank .00185
Residual .43
We have a $3,500 left on a note on a minivan and they will pay that off for us.
What do you think?? Incentives end 4/3 and need to decide asap. Thanx much for your help!!

gdclnfn

ldriscoll brings up a good point...do incentives ever end...or do new ones just come out? I can't see how the price of the exact vehicle can increase from one day to the next.

joegolfer1

Carman - was wondering if you had the new money factors and residuals for a Volvo XC-90 V8 for 36 months with 15,000 miles per year? Thanks in advance for your assistance.

klockboy

Hello:

I do not know if the forum allows posts on Getting out of Leases, however I will give some preliminary information and maybe Carman will let me know if it is OK.

I am in a XC90 V-8 lease and I need to get out due to some financial issues.

The SUV has approx. 9000 miles and is in exc-mint condition. The lease is through US Bank and they allow transfer of lease if you have excellent credit.

It is located in the NW Suburbs of Philadelphia.

The lease price I negotiated for a V-8 is the lowest I have seen advertised - I am paying $488/month x 9% Sales Tax for a total of $531.

If this is allowed by the rules of the forum and if someone shows interest, then I will post my personal e-mail and start a dialogue.

If you are seriously considering this vehicle I truly would not pass up this opportunity - this is a Great Vehicle!

Thanks...

CarMan@Edmunds

Hi gdclnfn. Incentives on vehicles rarely just disappear. In fact, generally speaking they usually increase as the model year progresses. Dealers often try to create a false sense of urgency to get buyers to buy vehicles "before the current specials expire." This is usually nothing more than a sales tactic because the new program is often better than the one that it replaces.

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CarMan@Edmunds

Greetings joegolfer1. I hope that you are enjoying the Masters this weekend. If you were to lease a 2006 Volvo XC90 V8 through Volvo Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00169 and 57%, respectively in most areas. You may find that you are actually able to get a better deal on this truck by taking advantage of the $5,000 incentive that Volvo is providing for leases of this model through independent banks.

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CarMan@Edmunds

Hi klockboy. Unfortunately, Edmunds.com does not currently allow community members to advertise their vehicles in its forums. There are sites out there like SwapALease.com that allow consumers to advertise vehicles that they want to have someone else take over.

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worcester1

I am interested in leasing a XC90 2.5T and am somewhat confused as to what incventives are currently available. Edmunds lists $3500 dealer cash as available with no restrictions, and I have seens Forum posts that indicate $5000 available for leases through independent banks. Can someone help clear things up as to which of these currently applies?

Thanks

ruoff

I am looking to lease the XC90 V8 AWD detailed below (3 yr 36,000 miles, in Westchester County, NY). Can you give me an idea of what I should be paying? Thanks.

MSRP $46,400
Added Options $3,320
Destination Fee $695
Total MSRP $50,415
Magic Blue Metallic $475
17" x 7" Anteaus Alloy Wheels with 235/65/R17 Tires N/C
Graphite Leather Seating Surfaces N/C
Climate Package
·Heated Front Seats
·Headlamp Washers
$675
Interior Air Quality System (IAQS) $175
Dual Screen Rear Seat Entertainment System $1,995

amg61

Does anyone have the current money factor and residual values for the XC90 2.5T for 36 months, 12 and 15K miles. Thanks.

Also, is there truth to the fact that there are $3500 incentives and possibly $5000 off for leasing through independent banks and what does that mean?? It appears also that the money factors and residuals are different for Volvo leasing and independent banks. Is this so?
And are these incentives for leasing, purchasing, V8, 2.5T??.
Also, I read about some lease deal on the Purchasing forum that mentioned $369/month with $1800 down and 12K miles. Not sure how many months. Any valididty to ALL this?

Thanks.