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2013 and earlier Volvo XC90 Lease Questions



  • zamozamo Posts: 122
    They were always free, for the dealer. It was never published though. How do you think they leased so well in the past?
  • binsky33binsky33 Posts: 9
    Hi All,

    Way back at Message #837 I did a 2 year lease for an 2008 XC90. I am in the last 90 days of the lease. I want to keep the car and only have 18k on the odometer.

    The lease is through Volvo Finance. The original buy-out is $30,373. I believe I need to go through a dealer not directly with Volvo finance.

    I have seen offers in the past for nearly $5,000 below the original buy-out.

    Is this still the case or has the residual market changed?

    I also would like to convert to a CPO (Cert pre-owned) car with Volvo. Does this cost extra too or part of the deal of closing out the lease?

    Does it pay to try different Volvo dealers to get a better deal?

    Any suggestions are appreciated.
  • volvomaxvolvomax Posts: 5,238
    Actually, the XC90 went a couple of years without any real incentives.
    Car came out in 03,and it wasn't until 06 that Volvo had to get creative.
  • volvomaxvolvomax Posts: 5,238
    Yes, you will have to go through a dealer. VFNA sets the number,not the dealer. So, going to a bunch of dealers is pointless. CPO costs extra. Partly it will depend on what the car needs to pass the inspection. Dealer won't just rubber stamp it.
    Prices have been going up at auctions all over the country,So I don't know that you will see a $5000 price adjustment. Should be able to get a couple grand,plus the cost of CPO.
  • zamozamo Posts: 122
    Any idea why prices have gone up on auctions? I spotted a 2 year old S80 with sport package and 18K miles for $19K 2 months ago, now they are not even going bellow $22K. Is there a higher demand of used cars lately?
  • volvomaxvolvomax Posts: 5,238
    Just like a stock, the cars value was oversold. It just got too cheap too fast.
    Market is correcting itself now. Generally speaking during recessionary times used car sales go up. People who need cars are less comfortable spending NC money. With Volvo's(and other lux brands) CPO program buying used can be very beneficial.
  • fyddychfyddych Posts: 1
    Others have posted about this, but I haven't seen anyone respond with a definitive answer. What are the current incentives offered by Volvo on the 2009 XC90. I've seen these :

    $3750 Dealer Incentive (is this for 5 pass. only? or both 5 and 7 pass.?)
    $5000 Lease incentive for outside financing
    $1500 Volvo Loyalty
    $1500 NEA discount

    Any other incentives available? Are these incentives stackable? Does this mean that you can lease a car, be a prior customer, and a teacher, and start negotiations with $11,750 lopped off immediately?

    Thanks for some real clarification.
  • dpeck1dpeck1 Posts: 51
    Don't forget about the discout off of msrp, which could be another 4,000.
  • When you say price adjustment, do you mean that VFNA will negotiate on the residual value? I was told that they have a insurance policy that protects them if the car sells at auction for less than the residual. In other words, VFNA doesn't have any incentive to negotiate the buy out. Any thoughts are greatly appreciated!
  • crestonavecrestonave Posts: 209
    Does Edmunds show the 3.2 version listed twice in it's new car pricing section, with two very different prices for the same equipment depending on which line item you select? Is one the five passenger, and one the seven passenger?

    Also, does the "what others are paying" price include the incentives which are shown under the "view" screen?

    Thanks. Confusing.
  • OK, I'm looking at a 2009 XC90 R-Design (love the uniqueness) MSRP = $46,033
    My local dealer is telling me a few things that I would like verification on…
    1) The 3 Yr. residual is only 34%
    2) US Bank is the only bank leasing Volvos
    3) The best money factor I can get with a 750+ credit score is .00230
    Is this all true, is it really that bad??? I can’t believe that they feel this vehicle will only be worth $15,651 in 3 years.
  • crestonavecrestonave Posts: 209
    Just found out tonight that my local guy is out of 2009s. Has the 2010 in stock but no info on programs until August. As far as he knows the scheduled maint that's included will be for 30k miles, no wear and tear, standard 4 year warranty.
  • volvomaxvolvomax Posts: 5,238
    Don't forget about the discout off of msrp, which could be another 4,000.

    Avg markup is a lot closer to $2000
  • volvomaxvolvomax Posts: 5,238
    Programs due next week.
  • volvomaxvolvomax Posts: 5,238
    Yep,thats pretty much what is going on.
    US Bank is the only company doing leasing at the moment.
  • volvomaxvolvomax Posts: 5,238
    The $3750 is only on the 5 seaters. The 7 seaters start off w/ free Premium and Versatility pkgs. 7 seater has a $500 incentive.
    Yes,the incentives are stackable.
  • Why is the residual so bad?????? That vehical will easly be worth over $20K in three years.
  • fluid15fluid15 Posts: 60
    My 2007 had a 2 yr residual of 72%. Wow, how times change ...
  • My 2008 has a 72% residual also. Which makes the value today at a little over $28K. And they hit it right on the money, because if you look at the used, low milage (under 20K) 2008s for sale right now they are all in the $28K range. That's why I cannot belive it has dropped to 36%
  • volvomaxvolvomax Posts: 5,238
    Because the banks all lost money on SUV's over the last year.
  • 36% is BS!!!!!!!!!!
    I WON'T be a returning Volvo customer.

    Even with the $33.3K deal I worked out; that's $200 over invoice, less $8K in incentives, with that money factor and residual it is still about $625 / month. $125 more than I paid for my 2008 XC90.

    I'll wait three years and buy the XC90 used for $15K. As a matter of fact, in a year or so, i'll just fine someone on who wants out of their XC90 lease and I'll be ahead of the game, because the car will be worth more than they owe.
  • volvomaxvolvomax Posts: 5,238
    36% probably is a little bit low. But the residuals on prior Volvo's were too high.
    What if gas hits $4.00/gal and stays there?
    Banks operate in a knee jerk fashion, so that is why the residuals are where they are.
    Look, no one is offering the same kinds of leases they did 2 yrs ago. It just costs too much to do so. When you are selling fewer cars(as everyone is) those costs are magnified.
  • 36% (3 yr) is what was quoted to me by the dealer; I think it is too low too. It should be more like the 50% range. BMW X5 3yr residual is currently 55%. I called US Bank and they will not tell me what their rates are as they do not lease to private individuals. I am curious what others are being told the XC90 residual is?
  • volvomaxvolvomax Posts: 5,238
    36% is 3 yrs 15k/yr. BMW is 46% thru US Bank.
    BMW Financial is probably offering a subvented residual in lieu of other incentives.
    I doubt that an X5 will be worth 55% of MSRP in 3 yrs.
    3 yr old X5's wholesale in the $19-20k range, and they all stickered north of $50 grand.
    So, the lender takes the loss. Pretty hard to justify when sales are down.
  • crestonavecrestonave Posts: 209
    Plus I think the redesign of the XC90 is due out in 2012, so that might factor in to the low residual value. I'm going to wait and see what the programs on the 2010s are, but I'm not encouraged. I think the Acura MDX and maybe even the MB GLK 350 could come in cheaper.
  • kyfdxkyfdx Posts: 176,650
    If they give you 20%-25% off the MSRP upfront, then how likely is it that the car will be worth 50% of MSRP in three years?

    We didn't know how lucky we had it with those $500 payments on $48K vehicles... The banks were losing their shirts.. they just didn't know it yet. Now, they know it, and the price reflects the risk.

    On the plus side.. if you like to buy your vehicle at the end of the lease, you'll get a pretty good deal.

    $500 lease payment on an SUV? Try a Tiguan, RDX or RAV4.. Doubt you'll find anything full-sized for that payment.. Or, possibly a stripped Pilot..

    Cheap leases are going to be hard to find for awhile...

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • I wish I could get a deal buying out my lease... Volvo Finance did a pretty good job getting my residual right two years ago. All the 20000 mile 2008 XC90s like mine are right around $28K, and that is exactly what my buy out is. I doubt they will be willing to negotiate very much.
  • volvomaxvolvomax Posts: 5,238
    Cheap leases are going to be hard to find for awhile...

  • volvomaxvolvomax Posts: 5,238
    VFNA got lucky. Wholesale prices on XC90's have gone up about $3,000 in the last 5 months!
    I don't think that will last.
  • 36% is 3 yrs 15k/yr. BMW is 46% thru US Bank.

    Last question, I promise…
    Does US Bank offer a 2 year 10,500/year lease like Volvo Finance did, if so, what is the residual and money factor on that option?

  • zamozamo Posts: 122
    I don't have the numbers handy but 2 years leases for US are way expensive. The residual difference is minimal between 2 and 3 years.

    Also, cheap leases are gone. It is better to extend the current VCFNA leases; it MIGHT get better by the end of the year but not as good as 2 years ago. The SUV market has tanked and the wholesale value is still low (has got better a bit lately though).
  • volvomaxvolvomax Posts: 5,238
    No, they don't.
  • binsky33binsky33 Posts: 9
    Well I just made my July payment, so I guess I will see what August holds for me when I get another buy-out number. My lease is up on 9/30 so I guess I can play it until the end. I think August is my last payment. I guess worst case is I pay $30.373 for a 2008 with 20K miles. I will probably convert to the CPO for about $1,600, it seems worth it. I got the convenience package in the 2008, so $30,373 seems like a fair price for a 2008 seven seater with versatility, premium package and convenience package and 20k miles.. Plus its my car, so I know its history!

    I will keep you posted on the process
  • onconc Posts: 26
    I just leased 2009 XC90, 3.2 with versatility and convenience packages. The dealer installed DVD player, park sensors and Garmin Navigation dash mount (I have the Gramin unit itself). So the car became pretty loaded.
    It is 4y lease with 12,000 miles/yr. Nothing down, and monthly payment of 510 (through US bank of course)
    Residual was %32. But I can buy it at the end for $11,400.
    I shopped for other brands. You can not beat this. Lexus, Acura, MB and BMW SUV are much more expensive for same equipment. My Volvo quote was cheaper than slightly less-equipped Honda Pilot 2009.
    Add to that, the 5 yr 60k warranty, which includes maintenance and wear/tear and one would be foolish to pass this. You can just buy the XC90 at the end and sell it next day to Carmax. You will make few thousands if you have a clean car.
    Good luck to all.
  • crestonavecrestonave Posts: 209
    That looks like a great deal. Would you mind sharing the MSRP of the vehicle with us? Negotiated price? AWD or FWD? Is tax included in your payment? Thanks!
  • redhat381redhat381 Posts: 26
    This is for a 3.2L 5 passenger base model for a 36 month lease.

    Does 31% sound right? I thought I saw a 36% residual for 36 mos in prior posts.
  • Pitting 3 dealerships against each other I've seen residuals for 36 months that range from 36% to 40%. But nothing that low.
  • Does anyone know if the 39 month lease through US Bank is 36000 or 39000?
  • rlongo76rlongo76 Posts: 3
    ONC - What dealership did you get that deal from? That sounds like an amazing deal.

    I'm getting ready to turn in my 2008 volvo now off a 2year lease that I had through volvo (21K) - residaul is only 27,300, but if i can get a brand new Volvo on a 4 year lease for 510 a month it sounds like a no brainer - especially with the maintenance and wear and tear included. I had the basic package before (no navigator or upgrades) and was paying 540/month (including tax)
  • crestonavecrestonave Posts: 209
    There's no info on the Volvo website about new offers as of 8/1. The most recent program supposedly expired 7/31. Maybe it's too early? Anyone hear anything?
  • Dealer here in southern california told me today that they extended the program through August. I'm going in today to see what they have to offer.
  • onconc Posts: 26
    Volvo Center, San Antonio, Texas.
  • I finally setteled on my deal...
    39 months @ $559.63/month $787 upfront, which is first payment and doc fee. I think the doc fee is just another way for the dealer to get a couple hundred bucks - but I can't verify that, useless someone knows if US bank charged them a doc fee? What I would really like to know is if you get an extra 3000 miles for the 39 month lease or is it capped at 36,000?
  • crestonavecrestonave Posts: 209
    A while ago a Volvo dealer told me that the price for extra miles was the same whether you paid for them up front or turned the car in over the 36K. Ask you dealer what the cost is both ways.
  • Hi naut_online. A 39 month lease would allow 39,000 miles (12,000 per year).

    Prices Paid: Buying & Leasing Experiences Forum
  • rcohenrcohen Posts: 1
    do you like the 2010 volvo xc90 or the 2009 acura mdx looking to lease now
  • got a (canned) email from a volvo dealer today that says that "safe and sound" is still on and that it also applies to 2010 models.
  • Edmunds shows starting 9/1/09 the loyalty cash is $1500 and Marketing Support is $1500.

    Just spoke to a salesman today, he said starting 9/1 the alternative lease support is only $3000 now for XC90 3.2AWD, down from $5000 before, does anyone know if that's true?

    Also, does anyone know the lease terms available from US Bank? Looking for residuals (%) and money factors for 36 or 48 month lease (or closest to), 12k/year. Bank fee charged by US Bank?

    Thanks very much for any answers!
  • Given the horrible August sales numbers just released by some manufacturers, especially considering the boost that "cash for clunkers" was supposed to give, I am amazed that they would reduce incentives. I would think they would increase them, if anything. I would like to lease an XC90 but I refuse to do it at current prices.
  • totally agreed, and I'd assume tougher for Volvo which (given its poor fuel efficiency) was never the targeted beneficiary of the clunkers program...

    But keep in mind this was a salesguy speaking, that's why I'm looking for independent verification here by Car_Man or anyone else who might know...
This discussion has been closed.