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2013 and earlier Volvo XC90 Lease Questions



  • thanks gentlemen, i think i follow (some of this seems to require a PhD to figure out). my wife's still pushing hard for the simplicity of purchasing and just trying to get the lowest price, but the logic you suggest makes economic sense.
  • I just got back from the Volvo dealer and these are raw numbers. I have not reviewed them or attempted to verify them.

    XC 90 AWD, climate, blis, silver

    msrp 43375
    price 35200

    no money down lease, 36 mos, 10k per year, incl NYS tax 749.86

    first month's payment and dmv fees due at signing

    mf .00270
    residual 38%
    buy out price 16482

    What do you think?
  • 35200 is excellent price. so long as your yearly investment gain is greater than 3%, lease is better than purchase.
  • jayriderjayrider Posts: 3,602
    The rv is higher than you can get a loan to buy and residual is brutal. This would be a better buy than lease especially with the 5/50k warranty. Monthly payment for 5 years would be about 720 nothing down inc tax.
  • I was surprised by the 35200 price. That's a huge chunk off the MSRP. I agree it would make more sense to buy it for 35200, but the salesman told me that 35200 was a lease price only, and that the car could not be bought for that price. I suppose that's because a third party is providing a substantial cap cost reduction on the lease. I didn't get into details.

    I agree that the residual stinks. My gut is that the lease is too expensive, especially when you consider that I can get an Acura MDX or Mercedes GLK for much less than that monthly. Then again, I'd have to factor in the cost of maintaining the MDX or GLK over three years, which costs are included in the XC90 lease.

    More to follow.
  • jayriderjayrider Posts: 3,602
    That's interesting that the good price is for leases only. You might also check out the lincoln mkx/ford edge. Awd ltd versions are nice. Check the lease discussions on those two -- might be of interest. Take a test drive -- let me know how they compare.
  • I like the Edge/MKX very much. I think Ford is turning out a quality product. I have a 2008 Mustang that I'm very happy with. My wife, however, doesn't care for them and seeing as it's going to be her car she should have the say.
  • jayriderjayrider Posts: 3,602
    Hear you loud and clear.
  • HI,
    Went today for the Costco deal of the day at Volvo in Fremont, CA.
    Got all the stuff- $500 under invoice, $500 additional Costco incentive, 4250 lease incentive.
    MSRP 42350
    (37,700 base, plus had metallic paint, climate, bluetooth, AWD, and he added 250 for fun) which totalled the 42350
    Invoice on all this was 40,042
    39% residual, 36 month lease, 12K miles/yr
    Money Factor: .00230
    Monthly payment including 9.75% CA tax= 604.17
    Drive off= 4885.22
    (2499. cap cost reduction, initial fees 976.75, annual fees (DMV) 470, tax 2267.42)

    Going in, I told them I wanted a payment around $500 and drive off 1K or less.
    What's wrong with this picture?!?!?!? I walked away and they couldn't have cared less.
    I really want this car. I have an ML350 that I hate, lease up in 3 months, and want a 3rd row seat. Any advice is appreciated!
  • That low residual is a killer.
  • stimstim Posts: 36
    Well you would be paying about 5.52 percent and the residual for me would be a deal breaker. True the discount offsets some of that but still payments are way too high for a 42K car. Unfortunately Volvo can't afford to subsidize or inflate residuals because they got burned on some the leases in 2006-2008 that had overinflated residuals and near zero financing.

    Went through the same thing a year ago. Was paying on a TWO year V8 XC90 lease about 400 per month with 3K down. YES it was 400 including tax - Volvo MF of .00002 and a residual of 72 percent! Think I paid about 50 cents a month in interest. Tried to lease another V8 and the payments were in the 700 - 800 dollar range. Money factor at the time was pretty decent about 2% but the residual was the deal breaker and drove the payments up about 125 compared to other cars.

    Ended up leasing a BMW X5 3.0 which had an invoice of 52K and my lease payments ended up being about 549+tax. with 3k down. HATE the car (noisy, seats really uncomfortable, rough ride) and in January will put it up on LeaseTrader/Swapalease and see what happens. Due to the lower monthly payment it should go. Would love to go back to an XC90 again but leasing it would cost way too much and buying would also be a mistake unless I was keeping it for 10 years - resale value are too low on the XC90 - 3 to 5 years out = = Huge money looser.
  • The finance guy at my Volvo dealer in Illinois told me to wait until after Dec 3rd because volvo just signed a national deal w/US bank that should make leasing a lot more attractive..he seemed to think the lease incentive could be better as well as the monthly payments...
  • This is correct, US bank is becoming the captive finance company for Volvo Cars North America, The residuals and money factors should be available to the dealers by tommorrow, being that the offers that are on the table right now end tonight, they will be much more attractive lease numbers not earth shattering but better.
  • That's good news. Certainly worth waiting for. Those 39% residuals just don't cut it. As things stand now, you can lease a comparable Mercedes or an Acura at a much better rate. Of course, one has to factor in the cost of scheduled maintenance into those deals as well. Best to just wait and see what develops this week.
  • Dont hold your breath I seen the residuals today and was disappointed and although they are higher, Volvo is not contributing as much cash towards the buydown rate which would have resulted in a lower number. Thats the bad news, the good news is that you will have a stronger residual towards a 48 month program combined with the 5 year 60,000 mile wear and tear maintenance program.

    If you are a person doing 15,000 miles per year ( like myself) this is probably a better way to go than lets say a mercedes or bmw which you would be limited to a 36 month term and would be out of warranty in under 3 years due to mileage.

    The maintence program at this time is only guaranteed thru December 2009, NO decision has been made by corporate going forward past that, If I find out about it later on in December if it is coming to an end or it will continue I will post it.
  • zamozamo Posts: 122
    hollywood53. Do you have the numbers for the 48 month program? mf and residual please. Sucks that my expectations were up high when you mentioned about higher residuals.

  • I would wait a day or 2 there is already a tremendous amount of flack from the dealer body, keep in mind that I saw these prior to the dealers, they were only being released today. I can not post them yet, due to the fact that west coast dealers are not even open yet. The original plan was to increase the residuals and maintain the same cash contribution towards the money factor to lower the price points by 20-25 per month per vehicle. I was surprised as were many of the dealers this AM that yes the residuals went up but the contribution went down making NO difference in the price points. I can only hope that the dealer body may exert enough pressure to have a few changes in the next few days.Although my feelings is that Ford is not going to give them any more money especially with the sale pending to (Geely Cars of China) <---My personal interpertation as to who is buying them ;)
  • zamozamo Posts: 122
    Lets hope! I have an R-Design on order due to be delivered by the first week of January. I am able to lock the rate in December once the VIN# is available. But considering the current "suggested" lease program from Volvo, seems that the plan will be scratched and I will need to extend my current lease:

    So let's see how Volvo works this out.
  • Just got back from the dealer. Don't know why they bothered changing anything.

    With an msrp of 43375, here's the comparison between the old and new offers, 36mo, 10k, no money down, 8.625% NYS tax included in mo payment, Costco:
    old new
    cost 35200 38900
    res 38% 45%
    mf .00270 .00155

    resulting in a new payment of 732/mo vs 750/mo on the old deal. On a 48 mo lease, the mo payment would be 662/mo. According to the dealer, there are no more 42 mo or 60 mo programs. I haven't worked these numbers or verified them.

    I may go check with a different dealer, but if these numbers hold up, there's no Volvo in my future.
  • zamozamo Posts: 122
    Would you mind sharing the residual and money factor for 48 months?

  • I only asked about the payment for 48 months - just as a point of reference, really, because I don't think I want to be locked into the car that long. I'm going to visit a different dealer today so I'll ask about those details and post later on this afternoon.
  • zamozamo Posts: 122
    Thanks, And I agree with your statement. I wish they had the 24 month programs with high residual/low money factors. Didn't need to buy tires.

    On the 48-month, though, a second set of tires can be maximized (depending on driving styles).
  • zamozamo Posts: 122
    Do these numbers include $1,500 loyalty? Thanks!
  • zamozamo Posts: 122
    Just called VCFNA and they stated that the disposition Fee is no longer waived, even if I continue leasing through US Bank as the new captive finance company. That sucks!

    $395 that used to be waived as I continued leasing through VCFNA in the past. What the hell is going on with Volvo? The MDX is looking more appealing now...
  • Costco, 36 and 48 month numbers, no loyalty, 10k/yr, no money down:

    XC 90 AWD silver metallic paint, blis, climate, MSRP 43050

    Cap cost 39600
    MF is .001 for 36 and .00124 for 48
    Res is 45% for 36 and 37% for 48

    My payment including 8.625 NYS tax is 714 for 36 mo or 643 for 48 mo. Improved over what the first dealer gave me, still too high I think.

    Out of pocket is first month and dmv.

    I have a trade in worth about $22k which I was going to try to sell privately. If my wife still really wants this car I might decide to buy it and finance the balance for 3 years. I dunno. In either case I'll go back to negotiate a lower price if she's interested.
  • zamozamo Posts: 122
    Thanks for sharing the numbers. If you were to buy after the lease, getting the deal done in Nov. 30th might have been a better move.

    Might be worth adjusting the cap cost another 1,000 or so. Give it a try. Still the beginning of the month so maybe waiting towards the end might help.
  • If you are on or close to Long Island I can help you somethingnew 53 yahoo
  • I'm on LI. How can I contact you?
  • Just as a point of reference, I can get a Range Rover Sport for 36 mo, 10k a year, 1499 down, for 799/mo, and that's without any negotiating.
  • Hello, I'm interested in getting your X5 if you want to get out of that lease. Send me some information please to [email protected]

  • Hello-
    I am looking to lease the 2010 XC90. I currently have 6 mos left on my 07 Nissan Pathfinder lease...I'm debating to purchase at the end of the lease and then private party resale. My purchase option is $14500 but KBB is lower than that, and I have cash in hand and want to offer $11000 cash to the dealer...6 months from now...not sure if it will work, but I am a good negotiator and got a good deal on my lease.

    Currently online I saw the 2010 XC90 is MSRP 37500 with a lease of 559/mo, but that is with $3k down and 12k/year. Not acceptable to me....definitely something I would squeeze passed them.

    Thinking I should finish up my Nissan lease, give it back to them, and take my cash towards the XC90. The only issue with that is I'm pretty close to my mileage limits on my lease. (Lease ends June 2010)

    Any suggestions or comments please :)

  • zamozamo Posts: 122
    Does anyone have a hint if Volvo might add more cash towards the end of the month? Has this happened in the past?
  • moreymorey Posts: 7
    Volvo XC 90 Metallic paint , climate, blind spot indicator, multimedia package, running boards, rear view camera, total used for lease calculation--43305
    Trade in - $5500
    Cash $3200
    Monthly payment--$538--48 month lease-$15k/year
    Buy out 16135
  • stimstim Posts: 36
    Don't want to sound negative - BUT - from your numbers you are putting down with your trade and cash $8700? Aside from that - just a though - you get into a wreck and total the car or have it stolen (unlikely based on statistics) and its unrecoverable - say the 6 or 10th month out from delivery - now what? Yes gap and your insurance co pays out but you'll never see that 8700 again. Yes it does lower the monthly payments a bit - but you do have other options to keep yourself protected. I'd have to pump the numbers through my leasing spreadsheet but if it were me I'd rethink that down payment.
  • moreymorey Posts: 7
    please put it hrough your program and let me know

  • I am looking to purchase a 2008 XC90 Green Metallic. It was a corporate lease vehicle and has 20,000 miles on it. V6 w/ third row, leather climate package. The dealer is asking 33,977, I am planning to offer them 30,000 for it. I am trying to figure out what they probaly paid for it at auction to see how much they have in it. I wanna be fair but at 34k i could buy a brand new one for 6k more. The point of buying a used is get rid of some of that depreciation. Can you Lease gurus give any insight on this? thanks
  • Hi,

    My 2 year lease is up March 7th'10.

    2008 XC90
    Original MSRP - $49,920
    6 cyl
    Dual rear entertain
    3rd row

    Final price for leasing was $42,700

    Buyout option is $29.900. Price for leasing was $42,700, I put zero down and rec'd $1000 towards price and $500 gift card from Costco at sign-up. Monthly payments are $484.00/month. This was a great lease I could not pass up back in Feb'08. Burgundy Metallic w/Sand interior.

    I like the truck, but is buyout fair (or) should I haggle a bit?

    Thank you
  • these buyouts are not being negotiated, check for prices for your area and mileage, use the private sale figures than add whatever value you feel is fair being you know the vehicle maybe up to 500 more than stated value, you can also check
  • these buyouts are not being negotiated, check for prices for your area and mileage, use the private sale figures than add whatever value you feel is fair being you know the vehicle maybe up to 500 more than stated value, you can also check

    Things will be changing once Geely cars of China takes over from ford in february, you will be in a ideal situation. You may once again see comparable pricing on the new leases.
  • zamozamo Posts: 122
    Comparable prices on leases? How is that Hollywood?
  • Ford is providing no funds to a company that they are in the process of selling, Volvo is out of money for this year budget, and there is no money to improve the programs after the first of the year with the new budget. Geely cars will be closing the deal in mid Feb. By march you should see improved programs with the infusion of the money from Geely Cars.

    It has already internally announced the the xc60 will be relaunched with a all new ad campaign and more competive leases starting the first of march
  • onconc Posts: 26
    Hi guys,
    That could be true. but I have another theory. Geely believes that Volvo is under-valued. They have a lot of money and do not need immediate increasing sales. My educated guess is that they will improve advertising for sure but may not drop the prices. They want Volvo to compete against MB, BMW and Audi. Dropping prices will give people the idea that there is something wrong and that quality will plummet given chinese aquisition. Continuing safe and sound will be a smart investment to assure the public.
    The chinese are smart, they should maintain quality. If they lose it, Volvo will disappear like Saab.
  • zamozamo Posts: 122
    I hope!. Just took delivery of my '10 XC90 R-Design
  • zamozamo Posts: 122
    Leasing programs for this month are really bad.

    I took delivery last week with the December program:

    2010 Volvo XC90 R-Design

    MSRP: 40,350
    Cap Cost: 36,586.64 (includes inception fees)
    Residual: $13,719
    Money Factor: 0.00113
    Term: 48 months / 12k miles year

    Due at signing: $0 (rolled into the cap cost)
    Payment: $565.26 (includes 6% use tax)

    I had Costco + loyalty.
  • autoboy19autoboy19 Posts: 136

    Would you mind sharing what the lease rates are for January? I am wondering about the 3.2 AWD R-design and V8 AWD. The incentives seemed to have stayed the same. Based on what you indicated in your previous post, it seems that the residuals fell and the money factors went up. Based on some advertising I saw, it seems that the 60 month leases are back. Thanks.
  • zamozamo Posts: 122
    I do not have numbers, but based on what I see on the Volvo site, residual might have gone down this month.

    I can tell you that the $1,500 loyalty is gone for the XC90. There is only a $500 loyalty for leasing now. The Costco discount is also gone.
  • On the 2nd of January I traded in a 2004 XC90 that had been giving me nothing but problems ( :lemon:). I had just bought I had a loan from a credit union for around $14,700 for it. I went to go pick up my 2004 from the service department and when it still wasn't ready, I decided to go ahead a purchase a new one (especially with the 5 year warranty plan). Here's what they did for a 2010 XC90:

    They paid off my loan of $14,700 (I also had another $3,600 cash in the 2004 that I took a hit on)
    I paid $39,550 (not including some taxes of $1,100)
    $0 down
    60 month lease at $740 a month with 8% interest rate
    $6,600 to buy at end of lease

    Did I get a fair deal or did I get hosed again? As a lease, I don't think it's a very good deal, but I know I was upside down with the other car. I leased because they said they could give me a better deal. Buying would have been 72 months at $776 a month ($39,550, $0 down). Now I just need to figure out how to pay less than $11,400 more for the car ($44,400 in payments over the lease term + $6,600 to buy at end of lease - $39,550).

    What I have been told to do, and have heard people do on these forums, is buy out the lease in six months to get a better interest rate and save on interest since I want to buy rather than lease. I'll end up paying like $10,000 in interest over the term of the lease! Also, how does the bank calculate what I will pay for the car in six months when I ask to buy out the lease. What do you all suggest?

    I feel like I should have been offered the Costco program (I am a member). Is that possible for a lease? It ended on Jan. 4th, but I bought it on the 2nd. Can I ask for it now?

    Sorry there are so many questions. Any advice you can give is helpful as I navigate through this. Thank you for your help and guidance!
  • zamozamo Posts: 122
    The dealer might have been able to give you an additional $500 discount with Costco. Your are also missing the $500 Costco cash card. Ask the dealer, maybe they can at least work on the cash card at this point.

    As for the payment, seems that the interest rate is killing you. The money factor US Bank was providing to Tier 1 customers for 48 months was 0.00113 (a tad over 2.7%).
  • jr22jr22 Posts: 3

    I have a 2008 xc90 and my lease is up Feb 24. I pay 438 per mo. I can extend the lease for 2 more months, but I will have to pay 400 registration.

    I want to lease another xc90, but was told since US Bank is doing finance now, to get the same exact base model would be 550 per mo, with 3500 down.

    I'm looking for a 36 month lease. Does anyone know if there will be better deals offered if I decide to extend the lease for 2 months and pay 400 for registration?

  • zamozamo Posts: 122
    I believe you can extend it for up to 12 months, unless they changed their policies. There might be better programs in March,
This discussion has been closed.