2013 and earlier Volvo XC90 Lease Questions

greenteam

hey dfarber.. what region are you in?? I was getting quotes for 600 per month.. I live in socal where did you buy it??

Any help will be apppreciated..

dfarber

greenteam- i'm far from so cal. i'm in the ny metro area. you should get familiar with the lease calculator that is mentioned in a bunch of places on this website. it will allow you to recompute the cost of your lease and you will see what it 'should' be, vs. what the dealer is charging you. you should be able to negotiate around 3-4k off the msrp price and then take 68% of that number. take that divided by 24 and that is the biggest chunk of your pmt. then take the msrp+purchase option price and multiple that times the money factor which should be somewhere in the neighborhood of .0005 to .0008. that amount is your interest on a monthly basis. add the 2 numbers up and you will see what your pmt should be. mine works exactly.

hope that helps

note that my montly pmt excludes the taxes since i paid them all up front. maybe the quotes you have received have taxes paid each month?

toddr3

I am looking to lease the above vehicle. Anyone know what the residual value is for a 36 and 39 month lease? Also, what are the money factors going for on tier 1?

CarMan@Edmunds

Thanks for the additional information, UKgirl. The XC90 that you described probably has a spread of around $3,000 between its full MSRP and dealer invoice price. Plus there is a $1,000 cash incentive on leases of it through Volvo Finance and $7,000 for leases of it through independent banks. If this deal is being run through Volvo Finance, the selling price is pretty good. If your lease is through a different bank, you should be able to negotiate a lower price than this.

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sinatra3

In reply to CarMAN: Do you know or does anyone know who the alternative lenders are offering 7000 incentive and why they would be that much better then Volvo finance. Also what are these lenders offering for MF and Residual for 36 month lease. How current and will these carry into May?
Thanks

CarMan@Edmunds

Hi nycars. Volvo Finance's lease program for this truck vary by trim level. For now I will assume that you are interested in an '07 XC90 3.2T 7 Passenger AWD. Let me know if you want a different version. This truck's current buy rate lease money factor for a 36 month lease through Volvo Finance with 15,000 miles per year are .00167 and 52%, respectively.

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CarMan@Edmunds

Congratulations on your new XC90, socalvolvoguy. Thanks for taking the time to share the details of your deal with everyone. Enjoy your new ride!

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CarMan@Edmunds

Hi bucky4kentucky. You definitely should not make such a large down payment on a lease of this vehicle. I always advise consumers against making large down payments on leases. Not only will you lose this money if your vehicle is totaled in an accident or stolen and never recovered, but it does nothing to reduce its lease-end purchase price. That's right, the purchase option prices of leased vehicles are based upon a percentage of their MSRPs. This XC90's purchase price at the end of your lease will be exactly the same, regardless of whether you make an $8,000 down payment on it or none.

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CarMan@Edmunds

Hi mickeyj. Volvo is currently providing $3,000 dealer cash on XC90 that are financed or paid for with cash, $6,000 to $7,500 on XC90s that are leased through independent banks, and $1,000 plus special lease money factors on XC90s that are leased through Volvo Finance. The exact amount of third party lease cash and Volvo Finance's current lease program vary by trim level. If you tell me exactly which XC90 you are interested in, i.e. 3.2T 5 passenger 2WD, 3.2T 7 passenger AWD, etc..., I will give you the exact details of the programs for the model that you want.

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CarMan@Edmunds

Hello chop2. The dealer that you are working with must be running your lease through a bank other than Volvo Finance. The money factor and selling price that you are being given on this truck look good to me. If you like the truck, this looks like a pretty good deal.

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CarMan@Edmunds

Here's the information that you're looking for, greenteam. You never mentioned whether the XC90 that you want is 2WD or AWD or whether it is the 5 passenger or 7 passenger version. These are important facts because they have an impact upon its lease program. For now I will assume that you are interested in an '07 XC90 7 passenger AWD. Let me know if you want something different. Volvo Finance's current buy rate lease money factor and residual value for 24 month lease of an XC90 3.2T 7 passenger AWD with 12,000 miles per year are .00053 and 65%, respectively. When negotiating your lease on this truck, make sure to take the $1,000 cash incentive that is available on leases of it through Volvo Finance into account. It will help you to negotiate an attractive capitalized cost for your lease.

If you opt to lease this truck through an independent bank instead of Volvo Finance, there is a $7,000 cash incentive on it that will help you to negotiate an attractive selling price.

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CarMan@Edmunds

Greetings toddr3. You never mentioned whether the XC90 that you want is 2WD or AWD or whether it is the 5 passenger or 7 passenger version. These are important facts because they have an impact upon its lease program. For now I will assume that you are interested in an '07 XC90 7 passenger AWD. Let me know if you want something different. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 XC90 3.2T 7 passenger AWD with 15,000 miles per year are .00167 and 52%, respectively. The numbers for an otherwise identical 39 month lease are .00167 and 50%. When negotiating your lease on this truck, make sure to take the $1,000 cash incentive that is available on leases of it through Volvo Finance into account. It will help you to negotiate an attractive capitalized cost for your lease.

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CarMan@Edmunds

Hi sinatra3. The large cash incentives that are available on leases of the XC90 through independent banks are actually being paid for by Volvo. It is so expensive for Volvo to provide lease support on vehicles through Volvo Finance that it provides these cash incentives in an effort to steer some lease business to outside lenders. This cash is available for leases through any bank, other than Volvo Finance. I do not personally keep tabs on independent banks' lease programs, so I cannot tell you exactly what the money factor and residual value would be on a lease through one right now. Volvo's current cash incentives and Volvo Finance's lease program are scheduled to run through July 9th without any changes, but Volvo reserves the right to make unscheduled changes to its programs.

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volvomax

May bank residuals are going to drop 2% for the XC90.

glacy

let see just see

mikeylikes

Carman,
Does the $7,000 incentive count on the sport model? If so, is this all I can expect off MSRP?

mylt4

Hello -

We are looking at leasing an XC90, does anyone know the new (May 07) program? lease $$$ MF. 24 - 36 months.

Thanks

sinatra3

Talked with Kundert Volvo in NJ today. Told me $7000 is still in play - however, quoted me a residual of 45%/47% and MF of approx. .002. Even with 0 down, payments still in mid 500s.
Dealer mentioned to me, that if I can wait till Aug 1, I will get a better deal with the 08's - i.e. pmt per month will be $100-$150 less and still no money down. He further commented that Volvo did this last year at the beginning.
Any thoughts on the residual and Aug 1 lease deals?

karolinatx

Here's the stats I was offered yesterday at Volvo of Dallas:

V6 with premium, convenience, and versatility (7 seats)
MSRP $43,845
cap cost $32,845 ($7000 3rd party creditor incentive, $2000 loyalty incentive, x-plan)
residual 45%
money factor .0025
admin fee $895
zero down

The guy I was dealing with also said he had a "tax credit" he could give me which lowered the tax to $573 (which is significant since in TX you pay tax on the whole car and not just the portion you lease).

So I cunched the numbers and that brings me to a monthly payment of $536.53 a month. I'm heading over to Park Place Volvo this afternoon to see if they can do better. What do you all think?

mylt4

Wow - that is significant. I am in NJ as well. If what he is telling you is true we should be able to get one of these for under $450 with nothing down. I would be in on that.

karolinatx

Park Place actually got my monthly payment down to $511 and whisked away my current S40 which still had two payments and a disposition fee left, so I came home this evening in a new XC90. Yay!

radoncgs

I am going to lease a XC90 V8 AWD. I have A-plan. Should I use Volvo Finance (with A-plan) or independent bank to get the best deal from the dealer? Please advise. I am in Seattle, WA. Thanks.

paxtonk

I'm in the Southern California Market, does the incentive apply here? Can I expect to negotiate anything more than the $7000?
US Bank
36 mo / 15K
45% residual
.00202 MF
$595 Bank Fee

2007 XC90 3.2T seating for 5.

Please advise, thanks in advance.

radoncgs

I am interested in leasing a XC90 V8 AWD with climate pkg, Bi-Xen, convenience pkg, touring/camulus whls pkg, rear seat entertainment MSRP $53467. I am offered for the following 2 options, and I need help to figure out the Money factor used for each option. It appears that monthly payment is high to me so I figure a high MF or too low a residual is used, esp for the US bank lease program.

Volvo 24 Month 10,500 mile lease.
MSRP $53467
Cap Cost $49,074
Residual $36,358
Down Payment $1,645
Payment $659 + tax.

US Bank 36 Month 12k mile lease.
MSRP $53467
Cap Cost $41,574
Residual $24,061
Down Payment $944
Payment $681 + tax

Car_man, which option is more reasonable to you? Please advise with your analysis. Thank you and everybody in advance.

paxtonk

radoncgs:

I don't know Volvo's program but the following is US Banks.

2007 XC90 AWD V8 7 Pass
36MO Residual for 12,000/year is 48%

2007 XC90 AWD V8 Sport
36MO Residual for 12,000/year is 47%

The Money Factor for Tier 1 700+ FICO is .00202.

I based the following on the V8 7 Pass.

The 36MO Payment should be $600.11 + tax
Drive Off should be First Months Payment + tax + DMV

The Bank Fee for US Bank is $695 with the Security Deposit Waived or $595 with out.

letch

Car_Man, I am looking to lease a V8 XC90 with metallic paint, climate package, touring package & the rear entertainment system. MSRP would be $51,310. I want a 24 month lease with 15k miles per year and want to put little to no money down. I've seen people mention a $7,000 incentive on 3rd party leases. Realistically, what should I be bargaining for on this lease and should I be shopping with leasing companies or with Volvo Finance? Thanks for you help!

bentley45

Would greatly appreciate your analysis and evaluation of the following terms quoted for an 07 XC90 with 2WD, i6, with pkgs: versatility, premium & climate:

Invoice: 40474.00
Dealer margin: 1100.00
41574.00
Lease incentive: -7000.00
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Selling price (cap cost) 34574.00
Lease co. acquisition fee: 695.00
Customer service fee: 398.00
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Gross cap cost: 35667.00
Residual: 18291.00
Money factor: .00282
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Monthly payment: 633.69
Taxes: 44.36
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Total monthly investment: 678.05

1000.00 due at signing covers tag, city & county taxes & 1st payment

paxtonk

Hi Bentley45,

What's the MSRP on this car? The money factor seems very high. How many miles per year and how many years is this lease?

I've never heard of a "Customer Service Fee".

Paxton

bentley45

Thanks Paxton: MSRP is $43,550. Lease term 36 mo., 15K. Bentley45

paxtonk

Bentley45,

I'm not sure what bank that is but the following is through US Bank.

2007 XC90 3.2 2WD 36mo/15K Residual is 44%, the Money Factor buy rate is .00202.

Based on your above numbers (including the "customer service fee") your payment should be $569.23 + tax and the drive off should be 1st payment + dmv + tax. The bank fee is the same for US Bank.

I think you could probably get a little more off on the sales price, the dealers seem to have a lot of inventory.

Paxton

paxtonk

letch,

From my research US Bank is the best to go through for a lease on the XC90, however they don't have a 24 month program.

When asking for a discount you shouldn't even talk about the $7000 because that is coming from an outside source. I would think you should get at least a $1500 discount from the dealer plus the $7000.

I hope this helps.

Paxton

bentley45

We're also considering the option of reducing the cap by $7,000 with a trade-in vehicle. I recognize there are arguments against this. However, this would erase the up-front money and reduce monthly pmts to $474 w/ tax. Using simple calculation (the only kind I'm capable of),it seems that would reduce the 36 month payout by $7,344 (36 mo.x difference of $204/mo), and eliminate the $1,000 downpayment. In the event of a wreck totalling the vehicle during the lease term, I assume the insurance would replace the vehicle, which would preserve the value of the investment of the trade-in. It would also save us the re-sale process. Any thoughts? Bentley

paxtonk

I'm not sure which state you're in, but here in Sunny CA we have to pay tax on the equity used on a trade. If you want a lower payment then use the trade but if you're okay with the payment without the trade I would recommend selling it yourself and putting the money elsewhere that could be more beneficial.

Paxton

parklife

I am about to pull the trigger on a 2007 XC90 Sport 24 mo. lease. Here are the terms; can I do better? If so, what is negotiable? It seems a bit high to me.

MSRP: $54622
Selling price: $50049
Lease acquisition fee: $895
Security deposit: $725
First payment: $722.77
Sales, tax and license: $2700.72 (I am in TX)
Cap cost reduction on trade: $4900
Money factor: .00205
Residual: $37142 (68%)
10.5k mi/yr.

Monthly payment is $722.77 as financed thru VFNA with the $1k incentive. Does this sound like a fair deal? Seems high but I do understand it's a $55k car. Thank you so much for any input.

heathmac

I am shopping around on a couple of dealerships here for a XC90 lease and one of the dealerships have given me this offer. Any insight would be greatly appreciated and if you think that I can negotiate a better deal let me know that as well.

This is through a 3rd party leasing company (Chase) so that I can take advantage on the 6k incentive.

48 Month Lease
MSRP:45025
Selling Price: 35536
.00275 Money Factor
39% Residual
12K mi/yr

$4,478.15 Down (includes everything)
$478.15 Per month.

I am about 80-85% sure that we will keep the car after we are done the lease that is why I am looking at 48 months.

Any input would be greatly appreciated. Thanks

carguy39

I'm about to lease an XC90 Sport with the following options - please comment has to what I can negotiate with the dealer -

Black Sapphire metallic paint
Conv. package
Technology package
Climate package
NAV
Rear entertainment system
BLIS

39 month lease/15K year
MRSP - $59,179
Cap cost - $47,300
Money factor - .00207
42% residual

$2,089 down (live in CT -includes 1st payment, Reg fee $163, acquisition fee $895, conveyance $199)
Monthly payment - $799.90 (going through US Bank)

Any help would be greatly appreciated.

paxtonk

heathmac -
If you plan to keep it then you want a lower residual, do you understand this?

US Bank
12K 48mo = 37% residual
Money Factor = .00202
MSRP = 45025
Selling Price = 35536

$4,478.15 total due at signing
$471.00 / mo including sales tax

I based the above on my own sales tax rate of 7.75% and my DMV of $287 only because I don't know where you live.

I think US bank would be a better bet.

At the end of lease Chase would have a residual of $17,559.75 and US Bank would be $16,659.25.

Paxton

paxtonk

carguy39 -

US Bank has a residual of 44% when looking at a 39 month 15,000 miles lease for a 2007 XC90 4d Wgn V8 Sport. The Tier 1 money factor is .00202. The Acq fee when waiving the security deposit is only $695.

What is the sales tax in your county and what is "conveyance"?

Paxton

carguy39

Paxton,

You were correct with your corrections to the MF and Residual.

Are you saying that I can wave the security deposit with some negociation? Is there anything else I can negociate when leasing - as you can see this is my first lease and feel I am getting the short end of the stick here.

Regards.

paxtonk

carguy39

You have two options with regards to the security deposit.
1. pay it and your bank fee is $595
2. don't pay it and your bank fee is $695

I'm glad to help.

Paxton

heathmac

Thanks Payton. Yes, lower residual make all the sense in the world. One question for you, were are you getting the Money Factor and the Residual from US Bank? Is it on their website? If so, can you point me to it?

Thanks,
Heath

paxtonk

UR Welcome. I work for a dealer and have access to the information. I don't think you'll find it published.

Paxton

heathmac

Paxton -

One last questions for you. Is it 3rd party leasing company get 7K or 6K off? I was talking with this deal and he told me that the 7K is only on the V8's is that true?

Thanks,
Heath

paxtonk

I'm not sure on this one. When I was shopping I called my local dealer and asked if the $7,000 is on the V6, which he confirmed to be true. It could have been more. FYI we actually ended up getting a ML350 for $2700 under invoice on a purchase at 2.9% for 72 months. The payment wasn't that much more.

radoncgs

Paxtonk and all:

I read a message posted earlier in the forum saying the monthly payment for leasing (a 2008 xc90) in August might be lower than leasing a 2007 model now. Does that make sense to you? Thanks.

paxtonk

radoncgs-

the 2008 would have a much better residual and probably a higher money factor. what you get with the 2007 is the third party lease discount. i didn't know the 2008 was even out.

Paxton

radoncgs

Thanks, and agree, the 2008 is not out yet. I expect not too much changes from the 07. I am currently thinking leasing a 07 Electric silver Sport with just the convenience and climate pkg with a MSRP of $51965. I was just quoted for a $ 669 per month including tax for a 36 month, 12K miles/year. Thanks again.

paxtonk

radoncgs -

if you want me to check the numbers i'll need to know what your tax rate is and are you going to put down any cap. reduction?

parklife

Paxton, I think you may have missed my post (#541). Please have a quick look if you don't mind. I think I can probably do a little better on the selling price. Any thoughts or input? Thanks again!

radoncgs

Yes, Paxtonk, please check the numbers for me. I was told that the cap cost is $44500 and the MF is .00219. The tax rate is 9.1%. Again it is a electric silver Sport with just the convenience and climate pkg with a MSRP of $51965. It is a 36 month, 12K miles/year lease program with zero down. I do not think the numbers that I was quoted for add up. Thanks.