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2013 and earlier Volvo XC90 Lease Questions



  • Need some help quickly as I need to get another car this week, our 2007 lease is ending sooner than I thought...

    Does anyone know what the current Volvo or US Bank lease numbers are (residual value %, money factors, 12k/year, 36/39/48 mos)?

    Are they different for 2010 vs 2009 models? I would presume so, since in 3 or 4 years all else equal the 2010 model will be worth more than 2009 model...

    Also, what Alternative lease support is Volvo offering for 2010 and 2009 models? Edmunds shows $4000 for 2010 but nothing for 2009, could that be right?

    Thanks very much!
  • volvomaxvolvomax Posts: 5,238
    XC90 inventory is very very low right now. No need for big incentives when you don't have many cars to move.
  • Thanks volvomax. If you know them, would you mind sharing the US Bank residuals and money factors for 36 and 48 mo leases? 800 credit score, existing Volvo customer.

    XC90 3.2 AWD Prem/Vers/Climate, for Northern California

    for 2009 (and 2010 if you have them!)

    Thank you sir.
  • Here's the latest info for 2009 model year (2010 in parentheses):

    Volvo Incentives:
    Volvo Loyalty Cash 1500 (1500)
    Alt Lease Support 3000 (4000)
    Marketing Support 1500 (500)
    TOTAL 6000 (6000)

    US Bank Lease Terms for 2009 model year:
    36 mos/12k mi per year - 41% residual value, .00212 money factor
    36 mos/15k mi per year - 39% residual value, .00212 money factor
    48 mos/12k mi per year - 32% residual value, .00207 money factor
    48 mos/15k mi per year - 30% residual value, .00207 money factor

    US Bank Lease Terms for 2010 model year:
    Add 1% to 2009 RVs, same mf's

    Took me a couple days, hope this saves others some time.
  • zamozamo Posts: 122
    Wow, those residuals are horrible. Better to buy a CPO instead
  • Not really, if you're comparing leasing new vs CPO, the money factors, residuals and monthly payments on a CPO would be much worse, so the CPO payments would likely be higher than new car payments. Plus there's far less transparency/uniformity with used cars so dealers have better chances of ripping off customers than with new.

    Independent banks don't like to finance leases for cars that would be 5-8 years old when they come off lease, there's too much back-end risk on residual values so they whack em down low in used car leases.

    Plus, you don't get the 5-year safe+sound maintenance-free coverage from new...

    All in all, you're way better off leasing new than CPO.

    And don't let any used car salesman convince you otherwise. If they do, post your deal terms on this board first before pulling the trigger and we'll give you some honest feedback...
  • zamozamo Posts: 122
    I said buy a CPO.

    With those horrible residuals you can hint that used XC90s are going for cheap and with 6 year/100K mile warranty:

    You get a 4 year loan from chase @ 5.31%:

    Your payments are $601.26 with $0 down.

    It makes more sense to buy a CPO rather than to lease a new one; after 4 years you still got equity with the former.

    I do the math all the time; just got a new Subaru Legacy 2.5i SE for $244 + tax with $0 due at signing (not even tag or tax). 36 months lease/12K miles a year.
  • Sorry I missed your point about buying CPO. However, a used CPO car isn't the same as a brand new car so its hard to compare, but lets try to break down the differences between leasing new (2009) vs. buying CPO (2007) over 4 years:

    First, you'll spend more on maintenance on a CPO (assume $500-$1000/year?) x 4 years = $2000-$4000. I spent $1500 on tires alone for the first 2 years of our current 2007 XC90 lease, and maintenance is sure to be higher in years 2-6 than 0-2.

    Second, your payment ignores sales tax at $601. Including sales tax (9.25% here in California) and using Chase's 5.61% interest rate for California the payment would be $661. This is roughly $98 more per month than the $563/mo lease available on a brand new car (7 passenger AWD), x 48 mos = $4700

    Third, to "equalize" the options lacking from the car you've identified, the 7-passenger rear seats were a $2500 option but lets say you can somehow find and install the rear seats for $1250, and install bluetooth for $400.

    So, at the end of 4 years in 2013 you've paid off your 2007 CPO car and own it outright, but the difference in cost of ownership ranges from $8,350-$10,350. Will the "equity" in your 2007 model be worth more than $8,350-$10,350 in 2013 (as a 6-7 year old car)? The residual value for the above 2009 lease (AWD 7) in 2013 is $12,397, so $8,350-$10,350 for a 2007 model with higher miles doesnt seem that far off, plus as a CPO owner you take maintenance and RV risk.

    If the lease RV is below-market at lease-end the lessee can buy the car and capture any upside. Conversely, if the the RV is above-market at lease-end the lessee doesn't suffer any losses, whereas an owner will suffer the loss. The future market value risk is borne by the bank and the CPO purchaser.

    Do you look at this any differently? If so, I'd be curious to understand your analysis and how you conclude that buying CPO is better.

    The Subaru deal sounds pretty good.
  • zamozamo Posts: 122
    For apple to apple comparisons, I do not include sales tax. I also metioned $0 down; not sure if the lease deal has the same term.

    The cost of ownership really depends on what type of maintenance I choose. The local mainekee can perform the basic tire rotation and oil changes inexpensively.

    Based on these examples were are at a point where a CPO buy and a new lease might cost the same after 48 months. The leased car goes away whereas the CPO is being kept. 2 more years with no car payments makes it a win-win situation.

    Before, when the XC90 was a $429/month deal for 24 months, it was a NO-brainer. I do have a 2008 XC90 with all options but Navi. 24 month lease of course.
  • fantomfantom Posts: 211
    My 2009 XC-90 two year lease is running out in several months. The residual on it is about $31K. I've heard stories about Volvo Financial knocking as much as $10K off the residual for a buyout.

    Is this possible, a reality, anyone with any knowledge?

    Would seem to make some sense given the deals on a new XC-90, and the very depressed value of used ones. If this is not fact, we're in the market again......
  • volvomaxvolvomax Posts: 5,238
    VFNA isn't knocking $10k off XC90's. Maybe last year,but not this year.
    XC90 prices are going up at the auctions.
    $31k is about right for an 09 if its a 6 cyl.
  • fantomfantom Posts: 211
    It's an '08 AWD, with about 18,000 miles.

    Is VFNA knocking anything off?

    Add a couple of grand to the residual, and we can purchase a new XC-60.
  • How'd you get an 09 two years ago?
  • volvomaxvolvomax Posts: 5,238
    For an 08 AWD, wholesale is @ $28,000
    So, probably not much relief there.
  • Does anyone have #'s for a new XC90 ? I have a 2008 coming up in December.

    Looking for V6, AWD, climate and 3rd row.
    Lowest miles per year

  • Hi goucla. What you were told by the dealer is correct. Volvo is only providing $3,000 on leases of '09 XC90 3.2 models through independent banks in September.

    Prices Paid: Buying & Leasing Experiences Forum
  • Hey goucla. It does not appear as though Volvo is running a special lease program on the XC90 through Volvo Finance this month. If you really want to lease this car, you probably would be best off doing so through US Bank and taking advantage of the additional $3,000 cash incentive that Volvo is providing on leases of the '09 XC90 3.2 and $4,000 on leases of the '10 through independent banks. Unfortunately, I have not seen the US Bank lease program so I don't know what the specifics of it are.

    Prices Paid: Buying & Leasing Experiences Forum
  • I went over to the San Diego Volvo dealership today to check out the '10 XC90. Here is the lease deal they gave me. Thoughts?

    Invoice Price - 37560 + 350 = 37910
    VA - 500
    ALA - 4000 (from US Bank)
    So the price was 33410.

    The Residual was 9988 on a 5 yr/60000 car with drive cost of 7500 and 455/mo w/ taxes.

    Is this a good deal?
  • kinngkinng Posts: 6
    Hi all, I have to lease an XC90 this week.

    I have access to Ford A-plan employee pricing from my brother. I just need a base XC90 (2009/2010) It's MSRP is 38,600.

    Please advise regarding financials -
    -- what money factor can I expect
    -- can I get the US Bank offer

    Thanks a lot in advance.
  • Maybe I'm not a good negotiator, but I've been searching for about a month for a great deal on a CPO '07/'08 XC90 with leather, 3rd row, and AWD with a clean carfax. The prices I'm seeing seem so inflated ($30-33k in Chicago) that I'm beginning to wonder if it isn't worth it go OSD, especially considering the Safe + Sound offer and I even think the Climate package is included for free right now. I estimate my cost new w/OSD at about $37k.

    I thought I'd never buy a new car, but the price difference between CPO and OSD is so slim that I'm leaning to OSD. Any comments? Am I reading the market accurately or are these factors I'm not considering?
  • jayriderjayrider Posts: 3,602
    You are right on -- the prices for late model cpo vehicles are within a few grand of buying new for most euro cars. Buy new or offer at least 10k below what you can buy the car new.
  • kinngkinng Posts: 6
    Anybody? Please help!
  • My XC90 lease is up end of November so I am starting my research early.

    V6 FWD- looking for best residual/money factor combination between the following

    12,000 or 15,000 miles

    2 or 3 years

    Thanks in advance. I have helped family and myself lease/purchase 6 vehicles over the last 5 years, and thanks to this forum we have received some amazing deals!!
  • Just wondering if anyone has any numbers yet for the above post
  • Hi kinng. Volvo is phasing out Volvo Finance. Soon all of its special leases will be run through US Bank. The fact that you qualify for A-Plan pricing should not have any impact upon your ability to lease this vehicle through USB.

    Volvo is currently providing a $4,000 lease cash incentive plus an additional $500 dealer cash on leases of this model.

    Prices Paid: Buying & Leasing Experiences Forum
  • Car Man,

    Do we know what the rates are for the US bank leases?
  • hjh22hjh22 Posts: 2
    My 2008 Xc90 (6 cyl) with DVD and third row, lease is up in December and we are thinking of buying the car. My purchase price is 30,000 and I'll have about 23,000 miles on it.

    Looking back at past posts it looks like there is currently little leeway on getting the purchase price reduced. Figuring I had nothing to lose, I called Volvo Finance and the person I talked to told me the negotiation to purchase should be done with the dealer. I thought Volvo Finance was the only one who could reduce the purchase price? What am I missing and what are the odds of me getting the purchase price reduced below 30,000.

    Thanks in advance for your help
  • My thought is that if Volvo Finance were going to reduce the buy out, they would only do it through the dealer, because that will give the dealer an opportunity to make a buck on the deal. They don't want to cut out their dealers.

    That's only my thought, I don't know that for sure. Several years ago I tried to buy out a GM car at lease end and GMAC wouldn't talk to me, but the dealer was able to come up with an offer which included eliminating the final few montly payments plus a discount from the buy out. I'm sure there was something in it for him.
  • zamozamo Posts: 122
    VCFNA has no interest on negotiating as their leases are insured. They recoup the difference between the auctioned price and lease buyout. The dealer will be able to help a bit, but not enough. In my experience, it is better to buy it from a dealer that has already bought a car alike from auction.
  • autoboy19autoboy19 Posts: 136
    Here are the rates on U.S. bank leases

    Residuals for 12k miles per year (15k per year are 2% lower)

    U.S. bank does not have a 24 month lease program.

    XC90 FWD

    36 37%
    39 35%
    48 29%
    51 28%
    60 23%

    XC90 AWD

    36 39%
    39 37%
    48 31%
    51 30%
    60 25%

    R design models are 1% lower across the board. V8 models are 1% lower than the 3.2 AWD, except for the 36 and 39 month terms which are the same.

    The base money factors are .00214 for 48 and 51 months, and .00224 for 36, 39, and 60 months.
  • zamozamo Posts: 122
    Those residuals are horrible. The good thing, there is a lease cash incetive of $3,500 if you go with US Bank.

    I just ordered an R-Design
  • Hello,
    My wife has an '08 XC90 3.2 AWD with 17 inch wheels. The tires are due for replacement, but the car is a lease and we are looking to return it next March when the lease is up. Since we are going into winter, I am tempted to take advantage of a really good deal on winter tires and just keep them on for the next 15 months til the lease finishes up. I am wondering if there are any issues with returning a lease with winter tires on the car (assuming tread level is ok)?
  • jayriderjayrider Posts: 3,602
    If the tires look like winter tires the inspection will probably result in you paying for a set of all seasons. If they aren't obviously winter tires you might slip by. I wouldn't chance it -- just buy all seasons. you might also need to buy tires of comparable quality. No off brand cheapos.
  • Hi HJH22,

    I just bought out my '08 XC90 from Volvo finance. It was 2 years old with 21K miles

    First off Volvo finance will only give you the buy-out price to the dealer. So you have to go through a dealer. Second expect to pay the buy-out price in your lease. Back when gas prices were over $4 the buttom fell out of SUV prices and you could get offers $4,000 below buy-out . Well the gas prices are down and the SUV market has fully recovered.

    I converted my car to CPO (Certified Pre-owned) when I bought it out for an additional cost of $1,500. This gives me 4 more years of warranty, I will not come near the mileage ceiling. So for $32,000 plus tax and tags I bought a CPO car that I knew everything about since I was the previous owner!

    I have AWD, 3rd Row, Premium, Versatility, and Convience package with backup system, Pollen Filter, and folding mirrors.

    I could not get a 2010 XC90 fully loaded for anywhere near $32,000. I have about 90% of the safe and sound with the CPO.
    $4k or more difference to get into a 2010 was not worth it in my opinion. Plus, I cannot tell the difference from a 2010 vs 2008. HD radio might be the only real difference.

    Note: I believe a well maintained Volvo goes forever. I have a '96 850 with 160K (the kids car), and a '01 S80 (mine) with 90k. I get a new Volvo every 7 years or so whether I need one or not. My wife loves her XC90 she will drive it for many years.
  • zamozamo Posts: 122
    They look at the remaining tread only. Doesn't matter the brand.
  • This morning I got an email from Costco offering:

    Purchase a new Volvo XC60, XC70 or XC90 between November 3, 2009, and
    January 4, 2010, to receive:

    * Volvo employee pricing for the XC60
    * $500 off Volvo employee pricing for the XC70 and XC90
    * PLUS all available rebates and incentives
    * PLUS a $500 Costco Cash Card

    How do I figure out what "employee pricing" is for the XC90?


    (Notice that the email specifically says "purchase" so I don't know if these incentives would apply to a lease)
  • I'm not a Costco member, but I'm curious if anybody knows what their numbers are. I couldn't swallow the overinflated used car prices so I opted for OSD in January. I'm taking my oldest son to Sweden on January 1, for free!
  • Sounds great! Have a good time and a safe trip!

    I'm going to check with Costco tomorrow. It will be interesting to see what the numbers are. Just poking around Overstock, I am getting prices below invoice, so I can't imagine how much better "employee prices" are, if at all. I personally think this thing is a slug, but my wife seems to like it, and I guess she should drive what she likes.

    I'll post what I come up with.
  • I have a 2007 XC90 (Climate, Premium 12k a year) with 30000 miles and a lease ending in May. The lender (Huntingdon Bank) is anxious to have me buy the car early and has made the following offer:

    based on a purchase price of $23,395, they will waive some fees, charge me 5.99 percent on the loan and no money down. they calculate $456 a month with some extended warranties, $426 a month without. Both figures are less than my current lease price, and owning would allow me to increase the insurance deductibles too.

    Questions: 1) is this a good deal? 2) are there better deals coming -- is it wiser to wait a few months and see if they are willing to charge even less? When I talked to them about 6 months ago, they were not as flexible as they seem to be now.
  • how does 23,395 compare with the residual value you originally got? are they waiving all remaining lease payments?
  • The end of lease value is, I think, in that neighborhood. I did understand them to be saying that they would waive all future lease payments. The loan would just replace the lease.
  • So essentially you are going to save five or so lease payments? Sounds pretty good to me. If I were you I would still try to get a little more out of them, especially if this was their first offer, but be prepared to pull the trigger in case you can't. After all, if you wait, you'll still have to make lease payments which I kind of doubt you'll be able to recoup. Good luck.
  • Please let us know about the Costco price.

    Regarding your comment about it being a "slug" - I agree. My wife picked out and loved our '07. She was happy with it until she drove an X3 and really, really enjoyed the newfound handling/drivability. We only have 1 child so the reduced space hasn't been an issue yet. Child #2 is on the way and she tells me she wants a Thule roof carrier instead of upsizing because it's more fun to drive and easier to park in day to day use. If we need more room we'll most likely consider the XC90 again because we were both happy with it.
  • My wife is tired of driving a 1995 Land Rover falling apart. We are looking at a 2010 black/black XC-90 v6 with nav package, wood wheel, climate pack and msrp of $46,125. With Costco deal, they will bring down to $42,591. Our friend will sign on title and we save another $1500 off, so out the door at $41,091. At 3.9% and $15,000 down we'd have $591.25 a month payments for 60 months (same as my student loans, ironically).

    We looked at lease option, $30,250 for 26 months with Costco deal...$17,066 residual.

    Never leased before, and we keep cars a long time (I'll drive my mustang into the ground).

    Does our purchase price sound like a good deal? I've looked around a bit and it seems like no one tries to go below the Costco price. My wife is too impatient to fly to Sweden and is ready to seal the deal.

    Any thoughts would be much appreciated.
  • Sorry - I meant 36 months on the lease.
  • zamozamo Posts: 122
    If I were you and wanted to purchase, I would rather lease through US Bank and then finance the payoff with another bank. Volvo is giving out $4,250 extra cash incentive if you lease through any other 3rd party. Savings add up.
  • Thanks for the advice. So you'd do the 36 month lease and then refinance the residual purchase ($17,988 they told us)? They ran those numbers with the $4250 discount...and, with fees and all, totalled $39,366...about $725 a month plus another $75 for taxes per month.
  • zamozamo Posts: 122
    I wont even wait for the 36 months. I would refinance the payoff amount within 6 months. The interest rate on a lease takes into consideration both cap cost and residual so the rent charge is higher than a regular loan. You can always payoff your car anytime during a lease.
  • kyfdxkyfdx Posts: 177,089
    Just to clarify the financing on the lease... You may add the CAP cost and residual together in the calculation, but you are actually paying the finance charges on an average of those two numbers, not the sum..

    So... the finance charges are similar to a loan..

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  • zamozamo Posts: 122
    This tricked me
    Finance Fee = ( cap cost + residual ) × .money factor

    But at the end they are alike (lease vs loan). Just made the calculation.

    So familyguy8, seems that you can choose to pay off at anytime. It seems best to do so at lease end.
This discussion has been closed.