2013 and earlier Volvo XC90 Lease Questions

qbrozen

OSD = overseas delivery

volvomax

Incentives apply to all XC90's, although the base car incentive is $500 less.
These incentives don't appear anywhere because they are dealer money, not a customer rebate.

raider4466

Thank You,

Is the assumption I made on the rest of my e-mail regarding the incentives and the amount one could negotiate down the cap cost correct or incorrect? Thanks

qbrozen

yes. In theory, you could get it for invoice minus incentives.

raider4466

So, the dealer leases the car through an outside bank to Customer "A" say for a cap cost of $32,000. After that Volvo sends the dealer a check for $6,500 ($4,500 alternative lease, and $2,000 marketing support). Is that how they do it?

qbrozen

No. I believe the way it works is the outside bank is buying the vehicle from volvo at the bottom-line price and then leasing it to you.

familyguy7

I would really appreciate any advice that one could give me for a deal that Dyer & Dyer in Atlanta is proposing:

2007 Volvo XC90 V8
White Pearl Exterior
Sandstone Leather Interior
Climate Package
Convenience Package
Touring Package
Volvo Navagation System
Active Bi-xenon Headlights
MSRP: $52880.00
INTERNET SALE PRICE: $49320.00
Lease Options
$1250.00 Due at signing
36 months/ 36000 miles $639.00 Plus tx
48 months/48000 miles $595.00 Plus tx

Thank you,

Dana Kerr

ukgirl

Can anyone tell me if this is a good deal:
XC90 V6 FWD, premium,versatility,convenience & rear entertainment package. MSRP $46,900.
24 months
10,500 miles
$916 drive off
$550 incl. tax per month
or
for a 48 month lease:
12,000 miles
$916 drive off
$575 incl.tax per month

Do either of these sound like a good deal?

familyguy7

Here is what Dyer & Dyer proposed after I asked for more information on the residuals and money factor:

2007 Volvo XC90 V8
White Pearl Exterior
Sandstone Leather Interior
Climate Package
Convenience Package
Touring Package
Volvo Navagation System
Active Bi-xenon Headlights
MSRP: $55082.00
INTERNET SALE PRICE: $49320.00
Lease information for 24 months 21000 miles
Money Factor .00099
Residual 71% of MSRP
$1250.00 Due at signing
$600.00 per month with tax

I am confused by the MSRP when everything I've seen is $53,742. I would appreciate any advice!

Thanks,

Dana Kerr

mjdbos

I am considering a lease of a 2007 XC90 for 24 mos and 12k/per year. Not looking for a fully loaded vehicle - AWD and 3rd row are the only requirements. In general, what incentives/cash back/rebates should I be looking for from the dealer? On the Volvo.com website, under Incentives, none are listed. I've been reading on this site about several ($4500 alternative lease and $2000 marketing support) and want to be generally knowledgeable before heading into the dealer. Any feedback on those that have had recent experience or know of these incentives/cash back/rebates first hand, I would be grateful.

Currently driving a 2005 Cadillac SRX AWD with 3rd row. Lease is up next month. Paying low $500's with tax/excise included. Love the vehicle but a 2007 with same equipment will cost me high $500's which I find unreasonable.

lowbid

Is this a good deal?

07 Volvo XC90 3.2 FWD
Bluetooth, Sirius Sat
Navigation, Wood Steering Wheel, Rear Head rest DVD.
Premium Package Power Glass Moonroof
Leather Seating Surfaces
Power Adjustable Passenger Seat, 8-Way with Lumbar Support
Audio System with AM/FM, In-Dash 6-CD Changer, 4x40-Watt
Amplifier, Eight Speakers ,
Convenience Package
Park Assist, Rear
Power Retractable Rearview Mirrors
Power Child Locks
Auto-Dimming Rear View Mirror
Compass in Rear View Mirror
Interior Air Quality System (IAQS)
Versatility Package
Third-Row Seats with Leather Seating Surfaces
Air Conditioning for Third-Row Passengers with Separate Control
Nivomat Self-Leveling Rear Suspension
Integrated Center Booster Cushion, Second Row

MSRP: $50,129.00

Final PRICE: $43,284.00

Based on that info the lease is as follows:

36 month w/ 12,000miles per year
$1,278.61 due at start

$667.61 plus tax

Money Factor: .00214
Residual: 45%
Any opinions out there?

upperc1

I just leased a 2007 XC90 for 24 months/ 15K/yr. AWD, Versality Package (3rd Row), Premium Package, Cold Weather Package with a Sirius Radio for $559.79/mo (includes 7.75% sales tax, title tags...Put 1 month down (559.75) with a security deposit of $600.00.

I am located in the mid-atlantic area of the US)

ukgirl

I leased a Volvo XC90 on Saturday at got the following deal:
XC90 FWD 3.2 with Premium Package, Versatility Package, Convenience Package & Rear Entertainment Package (2 DVD screens in headrests), 18" wheels and wood steering wheel. The MSRP was $46,915. We pay $540 per month (incl. tax), $906 downpayment, 10,500 miles per year for 24 months. I don't know what the money factor or residual is. This is the first time driving a Volvo. I've driven BMW and Mercedes for the past 10 years. I'm very impressed with this Volvo.

aja150

Hello All, I need some advice -

I just got back from a volvo dealership in the Chicago burbs (Lisle, IL) and I was shocked by the lease terms they just offered me:

2007 Volvo XC90
Titanium Gray
3.2 V6 AWD
MSRP of $47,395

I wanted to pay $550 per month with absolutely no money down on a 48 month lease and I have about $4,500 in negative equity on a 2003 Trailblazer I wanted to roll into the lease payment.

After much back and forth, the sales person quoted me $657 per month with $1,500 down as his final price. Can this be right? That seems way too high?? Am I just living in a dream world?

Thanks in advance

dfarber

I am in the NY tri state area and have noticed lease specials for a 24 month XC90 AWD 3.2 with an msrp of $45075 have come down. For around $399 a month with around $4K all in (down pmt of 2k + taxes + first/last month pmt +registration), you can lease the car. 10500 miles a year.

also saw at montclair nj's website that they have the deal for $369 a month.

Question for anyone- is this 80yr anniversary March event something that is for real, and come April, will this car be more expensive to lease? Should I get the car this March as opposed to April or May?

Any input would be appreciated.

Dave
NYC

upperc1

$399/month...w/$4000 down(Total out-of-pocket...taxes,tags,reg,1st and last month) sounds good to me

upperc1

Can you tell me if you pay Sales Tax in NY on the total price of the car??? Or, do you pay sales tax on the length of your lease (ie 24 months)?????

dfarber

just for the 24 months. take your monthly pmt plus down pmt and multiply by the 8% rate.

dfarber

msrp is 45075
has premium, climate, and versatility packages. has metallic paint. got a 24 month 10,500 mile lease.

put 0 down except for the $2800 which you can't avoid:

$468 first month pmt+$475 security deposit + $595 bank fee + $992 in NY State taxes + $300 other (registration/license plates)

$468 is my monthly pmt.

think i got a good deal b/c i priced it out on the lease calculator. with a money factor of .00087, i am getting the car for around $40,250 which is $5K off MSRP.

delson1

dfarber, did you essentially get the advertised $399/month deal and just put less down? Also, did you look into the Montclair Volvo deal? I saw that advertised too, but have not had a chance to look at it further.

dfarber

yes- I did put 0 down, but pls note: if i had put the 1995 down, the pmt they offered was $384/month and not the $399 advertised.

i used montclair's advertised $369/month w/ 1995 down (44,600 msrp) and i added metallic paint which drove the montly pmt up from 369 to 384.

i then put 0 down, which took my pmt to 468.

dcjme

dfarber -- Thanks for posting this. I'm using this now as the basis for a negotiation on a similar car. Sorry if I missed this info in an earlier post, but do you know what the residual percentage on the car was? Another poster had the V8 at 71%. Just curious if the 3.2 is the same.

Thanks

dfarber

my residual was 68%. i'd imagine the v8 would be similar. 71% could have been the percentage a few months ago, but it will drop throughout the year so 71 seems high at the current time. the dealer will give you the purchase option so you can figure it out yourself.

best of luck. i've found this website incredibly helpful. before i stumbled upon it, i was ready to lease the car at a $50/month higher payment than what i ended up getting.

CarMan@Edmunds

No problem kylechoffman. Are these prices the MSRPs or the X-Plan prices of the trucks that you're interested in? I need you to provide me with both in order for me to calculate sample lease payments.

Car_man
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CarMan@Edmunds

Hi goucla. I believe that Volvo Finance's money factors and Volvo's cash incentives for the 2007 XC90 are exactly the same in March as they were in February.

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CarMan@Edmunds

Hi Dana. Is this lease being run through Volvo Finance or an independent bank? This is an important piece of information because the money factor that will be used to calculate your XC90's lease payment is better for leases through Volvo Finance, but Volvo is providing additional cash incentives on leases of this model through independent banks. I'm going to guess that this is a Volvo Finance lease. Let's take a look at this vehicle's selling price. The spread between the full MSRP and dealer invoice price of a base 2007 XC90 V8 is around $3,000 plus Volvo is currently providing a $1,000 cash incentive on leases of it through Volvo Finance. This gives you a total of $4,000 or so to play with. You were quoted a discount of $3,560. This looks like a very reasonable price to me. Make sure that the dealer that you are working with uses this Volvo Finance's current 36 month buy rate lease money factor of .00193 or its 48 month buy rate of .00197 to calculate your monthly payment and you're in business.

Car_man
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CarMan@Edmunds

Hi ukgirl. 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 its selling price is.

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CarMan@Edmunds

Hey Dana. The money factor that you were quoted is right in line with Volvo Finance's 24 month buy rate for this truck. As I mentioned earlier, the selling price looks pretty good. If you like the truck, I personally don't see any reason not to proceed with this deal.

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CarMan@Edmunds

Hello mjdbos. The XC90's current incentives for leases vary depending upon whether you go through Volvo Finance or an independent bank. There is currently a $1,000 cash incentive on the 2007 XC90 plus special money factors for leases of it through Volvo Finance. For leases through banks other than Volvo Finance, there is a $5,000 cash incentive on 2WD and $5,500 cash incentive on AWD 7 passenger XC90 models. Let me know if you have any other questions.

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CarMan@Edmunds

Hi lowbid. Wow, that certainly is a loaded vehicle you're interested in. I didn't think that it was possible to get the MSRP of a 2WD XC90 all the way up to $50,000. It appears as though the lease that you were quoted on this XC90 is being run through an independent bank instead of through Volvo Finance. Volvo is currently providing a $5,000 cash incentive on leases of '07 XC90 7 Passenger 2WD models through independent banks. Plus there is a spread of around $4,000 or so between this truck's full MSRP and its dealer invoice price. That gives you a total of $9,000 to play with in your negotiations. You were quoted a discount of $6,845 on the specific model that you are interested in. If you are in an area that has a decent level of competition, I would not be surprised if you were able to beat this price. It wouldn't hurt to comparison shop a little bit.

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CarMan@Edmunds

Hi aja150. Given the massive amount of negative equity that you are trying to roll into your lease I am not that surprised by the payment that you were quoted. Ideally you would be better off waiting until you are less upside down on your truck to get something new. I would be happy to give you my opinion of this deal, but 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 this truck'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. Let me know what these numbers are and I'll tell you what I think.

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CarMan@Edmunds

Hi NYC. Automakers come up with all sorts of tag lines for their advertisements in an effort to generate excitement in consumers. Volvo's current lease program on the XC90 does not look significantly better than it has been for the past several months, so I don't think that there's much to the whole "80th Anniversary Event" hoopla. It is difficult to say what Volvo's April lease program for the XC90 will be like at this point, but I personally don't expect it to be much different than the current program. If you have the time, there's nothing wrong with leasing this vehicle now, but I personally wouldn't be too worried about not getting one until April.

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ukgirl

Hi Car man, The MSRP is $46,915. The selling price was $41,571.89 plus $595 aquisition fee. The car is equipped with Premium, Convenience & Versatility packages. It also has metallic paint, wood steering wheel, 18" camulus alloy wheels and Rear Seat Entertainment. It's V6 FWD.
The deal was $540 /month incl.tax, $906 down including 1st month payment, 10,500 miles /yr, 24 mths.
I have already leased it on those terms but please feel free to be honest and tell me if it was a good or bad deal, or a reasonable one! Then I will know better when negotiating another lease in 2 years.
Thank you very much. UKgirl.

spyglass1

CarMan,

You had mentioned that Volvo was offering a $5,000 incentive for leases done through "non-Volvo" banks. Do you have any idea what the money factor is for those loans? Also, an update on the residual value for Xc90 AWD, 24 months, 10.5k/year...money factor/residual value on next mileage category up would also be helpful (for 24 months and 36 months if possible)?

Thanks!

bgut1

Here is what I got. 2007 XC90 3.2 AWD with premium, versatility, climate and convenience packages, rear entertainment, bi-xenon, and metallic paint (MSRP - $48,902) for $43,070 (which I understand is $2K below invoice). I really didn't want the convenience and bi-xenon lights however I understand that most XC90's with the entertainment system are packaged that way for kids. Anyway, the lease terms are 15K miles a year, 24 month term (65% residual and .00053 MF) with no cap cost but about $3,000 down (incl. $917 tax, $218 MV fees, $525 deposit, first month payment and bank fees) for a monthly payment of $510. I am assuming this is a good deal and will probably pick up the truck on Saturday. One question - Is the security deposit waiveable? One dealer says no the other says yes. Anything else I'm missing? Thanks for your help.

upperc1

I like your deal..I got no convenience package, no rear entertainment, no bi-xenon for $1200 down and payment of $562, 15K..apples to apples your pmyt. would be $585 for the extra goodies..(extra $23-25/mo...maybe $30 w/ interest...where did u go 4 this deal?...However, I did install a SIRIUS radio ($approx $720 in the deal)

bgut1

Similar deals at two local volvo dealers: Red Bank Volvo and Volvo of Edison both in NJ.

scwoolard

I've been offered the following deal. What do you think?
'07 XC90 3.2 FWD $40,500 msrp
premium & climate package
sale price: 34,102.
850 cap reduction
577.13 @ 39m.
the lease factor is .00214
resid. % .43
total due @ signing 1913.63.

we are leasing through a 3rd party which qualifies for the $5,000 alternative leasing source discount. This accounts for the fact that the sale price is 3750 under the invoice price + 2K in negative equity.

nycars

I am going to either Red Bank or Edison this weekend. I am looking for a 3yr/15k per year lease. I would like climate and convenience pck. I went about a month ago, and there was a 10k rebate, is that still there. Trying to get an idea of what the monthly's will be? Thxs

nycars

I was also wondering what april deals were showing for residuals for 3yr/15k and money factors? Thxs volvo or carman

socalvolvoguy

Your deal seems quite fair. I just leased one today and here were the final numbers:

'07 XC90 3.2 FWD $43,225 msrp
Premium, Climate & Versatility packages
Sale price: $36,375
$0 Cap reduction
$600 + tax @ 36 months @ 15k miles/year ($0.18 per mile extra)
Lease factor of .00202
Residual of 45%
Total due @ signing: $1000.00

Plus, they paid off my 2001 S60 which had a loan balance of $12k.

bucky4kentucky

Hey Car Man, I'm looking at leasing a V8 XC90 with the intent to buy at the end of the lease. I noticed that Volvo's incentives ended on 3/30. I have up to $8k for a downpayment and wanted to keep the monthly payments below $500. What are your thoughts on my leasing with the intent to purchase and what should the best deal be for the V8 with the convenience package and touring package? The MSRP is $49.9k and I saw that the invoice is $46.8.

upperc1

Can I give my 2 cents?

I would NOT suggest putting 8K down (invest the 8K and use it w/ the money you make and use it for the "buy-out"). If you put the 8K down and your car gets totaled you are out the 8K. Even if the car gets into an accident and you get it fixed, it might serve you well to walk away at the end of the lease and think about buying another car. If you need the 8K keep it in the bank to help w/lowering the payment, use it every month so you can have your payment below $500.00

Just my 2 cents!!

upperc1

mickeyj

Does anyone know what the current lease incentives are vs incentives for purchase. I know there are extra lease incentives available, but I haven't seen a figure.

Thanks!

dfarber

i think your deal sounds ok. i just picked up an 07 3.2 AWD with an msrp of $46,370 and put 0 down (meaning $2700 after you count the bank fee of $600, taxes of $1000, first month pmt, deposit and registration).

my monthly pmt is $468.

24 months, 10,500 miles per yr. 68% residual. money factor is like .00049

dfarber

i think your deal sounds ok. i just picked up an 07 3.2 AWD with an msrp of $46,370 and put 0 down (meaning $2700 after you count the bank fee of $600, taxes of $1000, first month pmt, deposit and registration).

my monthly pmt is $468.

24 months, 10,500 miles per yr. 68% residual. money factor is like .00049

heathmac

Example Calculation Using the Leasing Formula

Let's assume you've decided on 3-year (36 month term) lease of a Toyota Camry XLE that has a sticker price of $24,600 (MSRP).

You've managed to negotiate the price down to $23,000 (Cap Cost). You decide not to make a down payment, but you have a trade-in worth $5000. Your Net Cap Cost is therefore $23,000 - $5000 = $18,000.

Now, the dealer tells you (because you asked) that the Money Factor is .00375 (.00375 x 2400 = 9.0%) and the Residual Percentage is 60% of MSRP. So your Residual amount, in dollars, is .60 x $24,600 = $14,760.

Now let's do the math:

Depreciation Fee = ( $18,000 – $14,760 ) ÷ 36 = $90.00

Finance Fee = ( $18,000 + $14,760 ) × .00375 = $122.85

—

Monthly Lease Payment = $90.00 + $122.85 = $212.85
(sales tax not included)

chop2

XC-90 AWD 3.2V6 2007 5-SEATER,PREMIUIM,CLIMATE,SIRUS,BLUETOOTH
msrp-42,350.00
PRICE- 32,943.00
36 mth-15,000.00 miles
MF-.00207
RESID- .45
DOC FEE- 150.00
RES ADDS- 705.00
ACQ FEE-595.00
ADJ REDID-19,374.75
TOT INIT PMT- 2,854.25 (SIGN AND DRIVE-INCLUDES 1ST PYMT)
MONTHLY PMT- 485.20
I'm supposed to pick up next week.
WHAT DO YOU THINK?
Thanks.

greenteam

hi, could anyone help me find money the money factor and residuals for a 2 year 24k mile leae on an xc90 v6 with premium and versatility??

Thanks,

dfarber

check my earlier post- i got an xc90 3.2 v6 with prem/vers/climate/convenience packages with an msrp of 46k with 0 down (which meant $2700 including 1stmonth+dep+taxes+tags+acq fee)

residual was 68% of msrp. based on 24 months with 10500 miles per year. money factor was .00049.

pmt is 468/month