2013 and earlier Volvo XC90 Lease Questions

radoncgs

Why not order one from your local dealer who gave you the quote? They maybe able to find you one from other regional dealers or give you a loner while waiting for your order.

mcarl

Does anyone have an idea how X-Plan pricing works. Are there set lease packages for each eligable vehicle (which is what GM's is). Can you negotiate on top of X-plan. In theory I should get the same deal from all Volvo dealers in my area. Thanks

CarMan@Edmunds

Hi Lee. Volvo is currently providing a total cash incentive of $7,000 on leases of 2007 XC90 3.2 FWD 5 passenger models through independent banks. If I was in the market for this vehicle I personally would shoot for $500 to $1,000 over invoice minus the cash incentive. Try stopping by the following discussion to see how much other community members have paid for their XC90s lately: "Volvo XC90: Prices Paid & Buying Experience".

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CarMan@Edmunds

Here is the information that you're looking for, Bo. Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2007 XC90 3.2 AWD 7 passenger with 18,000 miles per year are .00050 and 56%, respectively. The numbers for an otherwise identical 36 month lease are .00228 and 46%.

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CarMan@Edmunds

Congratulations on your new XC90, vgupta_98. Thanks for taking the time to share the details of your lease with everyone. Make sure to share your thoughts on your dealer experience by stopping by the new Edmunds.com Dealer Ratings & Reviews section. Enjoy your new ride .

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CarMan@Edmunds

Hello czm3136. Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2008 XC90 3.2 AWD 7 passenger with 12,000 miles per year are .00061 and 65%, respectively. When negotiating your lease on this model, make sure to take advantage of the $2,000 cash incentive that Volvo Finance is providing on 36 month leases of it.

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CarMan@Edmunds

Greetings commendatori. 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 what vehicle's selling price is 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 of this deal if you let me know what these numbers are.

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onc

I meant versatility and premuim packages rather than versatility and convenience. Sorry. It is FWD. MSRP was $37,684, selling $31580 with all the fees. $0 down, 48 months, monthly payment is $510 (tax included).

epiney

Hi Car_man

Can you tell me what the mfs and residuals are for a 2008 XC90 V8? Does the $2000 incentive apply as well.

Also is the $7000 incentive available for 2007 V8 models?

Thanks very much.

CarMan@Edmunds

Hi pannikattk. The money factor and residual value that you were quoted for this lease are right in line with Volvo Finance's current program for it. This is a good thing.

Now let's take a look at this truck's selling price. The XC90 that you described probably has a spread of around $3,300 between its full MSRP and its dealer invoice price. Additionally, Volvo is providing a $4,000 cash incentive on leases of the '07 XC90 through Volvo Finance. This gives you a total of $7,300 to play with. You were quoted a discount of $7,660. This looks like a very attractive selling price to me.

At first glance this looks like a very good deal, but something is off with the payment that you were quoted. I come up with a zero down, pre-tax monthly payment of around $483 on this model. Make sure to find out why the payment that the dealer is quoting you is so much higher.

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CarMan@Edmunds

Hello rgrand. The lease program that you were quoted for this vehicle is right in line with Volvo Finance's current program for it. That is a good thing. The selling price that you were quoted for it looks very attractive as well. I just worked up a lease payment on this vehicle using the info that you provided in your post and I came up with exactly $479 per month. This looks like an excellent deal. If you like the vehicle, go for it.

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CarMan@Edmunds

Hi palleg33. The Volvo XC90's lease program varies by trim level, i.e. its money factors and residual values are different for the AWD 5 passenger model than they are for the FWD 7 passenger model. If you tell me exactly which model you are interested in, I would be happy to give you an idea of what its current lease program is like.

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CarMan@Edmunds

Hello wrasq. 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 vehicle 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

Welcome archmama. 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.

Volvo Finance's lease program for this vehicle varies by trim level. For example, its money factor and residual value are different for the XC90 3.2 AWD 5 passenger model than they are for the XC90 3.2 FWD 7 passenger model. If you tell me exactly which version of this truck that you want I can give you an idea of what its money factor and residual value are currently like. Furthermore, if you provide me with the full MSRP and approximate selling price for the XC90 that you want I will gladly estimate what its monthly payment should be.

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CarMan@Edmunds

Hi jw766. The XC90 that you described probably has a spread of around $3,300 between its full MSRP and its dealer invoice price. Plus Volvo is providing a $4,000 cash incentive on leases of it through Volvo Finance. That gives you a total of $7,300 to play with. You were quoted a discount of $6,889 on the XC90 that you want. That is probably around $500 over invoice or so, which is an excellent deal. Just make sure to have the dealer that you are working with use Volvo Finance's current buy rate lease money factor to calculate your monthly payment. I would be happy to tell you what that number is right now if you provide me with a more detailed description of the model that you are getting. I need to know if it is AWD or FWD and if it is the 5 passenger or the 7 passenger model.

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CarMan@Edmunds

That is a good question, Philip. It appears as though most leases are being run through Volvo Finance, so I suspect that is the way to go on a lease of this vehicle right now. Volvo is providing special money factors and $4,000 lease cash on leases of the '07 XC90 through Volvo Finance. It has a total of $8,250 in cash incentives on leases of the '07 XC90 3.2 FWD 7-passenger through independent banks, but I don't know what sort of money factors and residual values independent banks are offering on this model right now.

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CarMan@Edmunds

Hi chriscava. The dealer that you are working with is running your lease through US Bank instead of through Volvo Finance. By doing so, your money factor will be higher but the dealer has access to an additional $4,250 in cash incentives ($8,250 total) on the '07 XC90 3.2 AWD 7-passenger model. If you want, have the dealer back out the additional cash incentive and see what a lease of this model would cost if you went through Volvo Finance.

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CarMan@Edmunds

Hi chriscava. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 XC90 2.3L AWD 7-passenger model with 12,000 miles per year are .00228 and 50%, respectively. Volvo is providing a $4,000 cash incentive on leases of this model through Volvo Finance. These programs are scheduled to run through September 4th. The money factors that are being provided on this model through independent banks will not be as low, but Volvo is providing an additional cash incentive of $4,250 ($8,250 total) on leases of this vehicle through independent banks.

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CarMan@Edmunds

Hi ccjc. I would go with the $551 at signing deal over the $1,708 at signing deal if I was in your situation. I always encourage consumers to put as little money down at signing on leases as possible. I do so because in the unfortunate event that your vehicle was totaled in an accident or stolen and never recovered, part or all of your down payment would essentially disappear.

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CarMan@Edmunds

Hi sn14. Ultimately you want to drive off in the SC90 that you want with the lowest possible monthly payment. It really doesn't matter if you get to that payment by leasing through Volvo Finance or through an independent bank. Volvo Finance will have a more attractive money factor and residual value for the XC90 that you want, but Volvo is providing an extra $4,250 cash incentive on leases of the '07 XC90 3.2 AWD 7-passenger through independent banks.

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 vehicle 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

Welcome warnerss. 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.

You are going about things the right way by negotiating the lowest possible selling price on the model that you want and then discussing your lease options. Keep in mind that Volvo's cash incentives on leases of the XC90 are higher than its cash incentives for ones that are financed or paid for with cash.

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CarMan@Edmunds

Hi kath. 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 model 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.

It is difficult for me to estimate how much increasing from 12,000 to 15,000 miles per year will alter your monthly payment without knowing what this vehicle's selling price is.

The methods for calculating sales tax on leased vehicles vary from state to state. I can try to give you an idea of how it is calculated in your state, or at least refer you to a web site that might have the answer for you if you tell me what state you are in.

I definitely would advise against making a $3,000 down payment on your lease. I always advise consumers against making capitalized cost reductions when leasing because those who make them risk losing part or all of them if their vehicle is totaled in an accident or stolen and never recovered.

I believe that Volvo Finance automatically includes gap insurance on its leases at no additional charge.

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jjohnson085

Just got these numbers from the dealer today and I thought the payment would be a lot less then it is:

2008 XC90 3.2 - 7 passenger
MSRP - $43,625
Selling Price - $33100 (xplan+ incentive)
Residual - 42%
MF - .00280
0 Down
36mos/12K miles a year
Payments - $644 a month inc. tax through US Bank

This seems awfully high to me for such a good selling price. Is 24 month a better deal?

Any help would be appreciated!
Jeff

adam26

I'm probably going to go with 24 month/10,500 lease.

I received this quote yesterday...

$44,320 MSRP
$488 + tax per month
$902 drive-off
64% Residual
MF- .00037

What's the xplan?

babtong

Car_man:

I have the following quote from a dealer (L.A. area):

2008 XC90 3.2
Versatility Package
Premium Package
24 mos
15k miles/yr
$0 down/ $0 drive off
$550.19/month (including gap and tax)
MSRP: $42,675
Residual: $26,031.75 (61%)
Money Factor: .00014
Miles Over: $0.20/mile

Do you think I should pull the trigger on this one? If not, what can I do to better negotiate this?

Thanks in advance!

CarMan@Edmunds

Hey Bo. I have seen Volvo's August lease program for the XC90, but I need some information from you in order for me to give you a good idea of what the latest program is like. I need you to give me a detailed description of the XC90 that you want and tell me how long you want to lease it for and how many miles per year you need to be able to drive it.

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CarMan@Edmunds

Congratulations on getting your new XC90, bogusbogus32. Thanks for taking the time to share the details of your deal with everyone. Make sure to stop by the new Dealer Ratings & Reviews section of this site to share your thoughts on this dealer. Enjoy your new ride :shades: .

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CarMan@Edmunds

Hi mcarl. Ford's X-Plan provides consumers who are eligible for it with an attractive selling price on the vehicle that they want which is below dealer invoice minus any available incentives. This attractive price is then used as the capitalized cost for your lease and Volvo Finance's current lease program is used to calculate your monthly payment. Most dealers will probably not be willing to provide any additional discount on top of the one that the X-Plan program offers.

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CarMan@Edmunds

Here's the info that you're looking for, epiney. You never mentioned how long you want to lease for or how many miles per year you need to be able to drive, so 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. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 XC90 V8 with 15,000 miles per year are .00201 and 54%, respectively. Volvo is providing a $2,000 cash incentive on leases of the '08 XC90 through Volvo Finance. There is a total cash incentive of $8,250 for leases of this model through an independent bank.

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CarMan@Edmunds

Hi Jeff. It appears as though the dealer that you are working with is running this lease through an independent bank. The advantage of doing so is that one can take advantage of the huge cash incentives that Volvo is providing on leases through banks other than Volvo Finance. The disadvantage is the poor money factor that has to be used to calculate your lease payment. Even though Volvo Finance's 24 month money factors are much lower than its 36 month factors, I doubt that this is the case for any independent banks. Have the dealer run a couple of lease payments on the XC90 that you want through Volvo Finance for you to see if your payment would be any better. I doubt it will be though because if it would have been, the dealer probably would have just used Volvo Finance in the first place.

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CarMan@Edmunds

Adam26, X-Plan is Ford's employee purchase program.

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CarMan@Edmunds

Hello babtong. The money factor that was used to calculate this vehicle's monthly payment is right in line with what it should be for a lease of it through Volvo Finance right now. However, you never mentioned its selling price. 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 vehicle 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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epiney

There is a total cash incentive of $8,250 for leases of this model through an independent bank.

Thanks! Car_man. I didn't know incentives were so good on 08s. I'll have more serious discussions with them and post details here.

bmw325xi1

I have an offer for a 2008 XC 90 where the MSRP is 47320 and Invoice is 43731. There is a lease rebate of $6500. The dealer is pricing in $500 profit and a bluetooth add of 483 = $38214. I don't need to lease - so the dealer is recommending that I do the lease to get the lease rebate of $6500 - and then buy out the lease in a couple of months. I will have to pay $300 as a buy out fee - but shouldn't I do this?

Appreciate your thoughts

bodid

I got an offer on an 07' XC90 V8 Sport here are the numbers. This truck was a demo with 4750 miles already on it...

MSRP...54622
sell price...45285.59
residual...57%
money factor...00026
lease terms...24 mo./15K per year
sales tax...8.375

Something's not right when I run these lease numbers. Could you run them for me? I'd like my taxes buried into the lease. All I want to pay upfront is first mo., doc fees, reg, etc. I've got to pull this trigger (or not) by Weds. am. latest. If you could post a reply asap I'd appreciate it...

Thanks,
jeff

chang2

Great information on this site. I am about to pull the trigger on the following 36 month lease with a local Volvo dealer.

2008 Volvo XC90 3.2 FWD
Premium, versatility, wood, climate package and metallic paint
MSRP: $43,675
My price: $34,847
Money factor: .00281
Residual: 48%
Price including taxes is $0 down and $580 per month.
36 months
12,000 miles per year
They are using an outside bank

Does this look like a reasonable deal?

raymondy

Car_man

Could you help to provide the MF and residual for a 3.2 FWD 5 seater XC90 for 24 months/10.5K/yr? Does the 7 seater 3.2 or AWD 3.2 have lower MF or higher residual? Thanks

epiney

I don't need to lease - so the dealer is recommending that I do the lease to get the lease rebate of $6500 - and then buy out the lease in a couple of months. I will have to pay $300 as a buy out fee

How does it work? Will you have to prepay the remaining lease payments and residual value? If that's the case, wouldn't it b ebetter to let the lease run it course and you can buy it at the residual value? You would just be prepaying interest if you paid the remaining lease payments.

ethandane

thinking of pulling the trigger on a new volvo xc 90 AWD - 7 Seats
offered the following lease deal, 2 years, 10,500 with 2K down (covers all costs) for $600 per month.
car includes: Navigation, DVD, Premium Package, Versatility Package, Conven Package

How is this deal, Negotiated Price was $45,020,

thanks,

vrynice

Looking for some advice. Below are the details:
2008 Volvo XC90 3.2 AWD With Premium, Climate, Versatility Packages
24 Months with 12k miles - $529 (including tax)Nothing out of pocket - this is part of their sign and drive event.

bmw325xi1

I thought sign and drive was only on the 2007s.

vrynice

so did I, but I got an email froma local dealer saying they are offering the same prices on their 08's that they were doing on the 07's. I contacted them yesterday and sure enough that was the deal they gave me.

gjk66

Hi Car Man,

A local dealer in PA is offering the XC90, 3.2, AWD, 7-passenger with Premium, climate and versatility for $459/mo. (excluding tax, lic. & reg.), MSRP $45,200 on a 24 mo. 10.5 k per year lease. Do you know what the money factor and residual might be? Also, what would be the cash back/incentives I should know about to negotiate the lowest price? Should gap insurance be included?

Thanks!

rubin72

What do you think of this lease deal?

2008 XC90 V-8 AWD
Conv. Pkg./Climate Pkg/Black Metal. Paint/Dest.
MSRP: $51,695
Sale Price: $45,781
Money Factor: .00026
Resid. Value: 64%
Down Money: $1,386 (bank fee, 1st Pay., Title, etc.)
24 months @ 15k miles/year
$599/month -including 9% sales tax in PA.

Is this a good deal or not?

Thanks all.

coasterbob

Carman, I am interested in the same information requested by gjk66. Dealers in Pa/NJ have similar sign&drive lease offers. This info would be invaluable to us. Thanks! Bob

greenoption

Sounds like you got a sweet deal. In NY, I am leasing the seven passenger for $499 with 12,000 miles, as part of the sign and drive.

lostchild

I got quotes from 2 dealers here in LA area for a 08 XC90 with premium and 7-seaters, 10.5k miles/year, 24 months lease, $0 drive off. One wants $575 + tax per month, the other $478 + tax per month. I think you know which one I will be going with!

lostchild

Anyone knows when would Volvo announce the lease incentive for Sept? I want to wait until Sept to do the lease, but I don't want to lose the current deal. Would the dealers find out before hand?

volvomax

No.
if you are leasing an 07, you probably want to do it this month.
If you are leasing an 08,it probably won't matter

coasterbob

Hi, I talked to someone at a Volvo dealership in NJ today, and she said S&D lease would carry thru September. Anyone get #'s for the S&D for an 08 AWD 3.2 XC90, 5 seater, premium, climate pkgs only? Thanks, Bob