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2013 and earlier Volvo XC90 Lease Questions



  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Here's the information that you're looking for, ferky. Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2008 XC90 3.2 7 passenger AWD with 12,000 miles per year are .00087 and 62%, respectively. The 10,500 mile per year residual value for this lease would be 63%. As you can see,, these numbers are in line with what you were quoted by the dealer. When negotiating your lease, make sure to take the $2,750 cash incentive that Volvo is currently providing on Volvo Finance leases of this model into account.

    Prices Paid: Buying & Leasing Experiences Forum
  • jpixjpix Posts: 4
    Hi Car_Guy. Thanks for your help.

    Here's the deal I'm leaning toward. I like this dealer better then the one who gave me the other offer.

    2008 XC90 AWD, black, 5 passenger, premium package, climate package,
    List: 42,475.00
    Selling price: $35,400.00
    24 mo / 12K per year lease
    0 down, $468+ sales tax otd (first month lease)
    $468 + sales tax per month
  • stim141stim141 Posts: 1
    Currently lease a 2006 XC90 V8, pretty much loaded except for nav and rear DVD system. When I leased mine in August of 2006 it was an end of year clearance deal. My 24 mon, 10.5K a year including all taxes and personal property tax (Missouri - West County Volvo) came to a grand total of $428.00 per month. Basically the dealer reduced the price from about 53K to 44K and jacked up the residual. Had to drop 3500 at signing. Seems like the APR for the lease was about .01% - super high credit score. I did have to a hard negociate at the time of the deal but they eventually bent - no trade, etc.

    Would LOVE to do the same deal again as the car has been pretty flawless. The only problem I see is that there doesn't appear to be that many XC90 V8's on the lot this year but there are a ton still out there with the V6 model.
  • bondguy1bondguy1 Posts: 228
    A dealer I spoke to offered me a "special edition" 2008 XC90 with a sticker price of about $52,000. It's the AWD version with V8...pretty well loaded. Has the nicer leather, markings on outside stating special edition, a lot of extra chrome and metal markings (like metal plate on rear bumper top, etc...).
    With same $1,000 total due at start on a 24 month lease, 23 remaining payments of $600/month including tax (includes 16,500 miles a year, not 15K). I almost think this is a better deal than the V6 version deal I posted available to me on 3/18's post. There are a few things I didn't like about the V6 version:

    The cheap looking leather seats with the pebbles "vinly" looking seat bolsters on sides of seat cushion.
    The radio, while some may like this style, I didn't like the BIG telephone style buttons....I'm coming from an Audi with MMI and not used to having radio buttons especially ones that big and bulky.
    No avilable better stereo (Dynaudio).
    I do realize there is a big price difference between the two and my V6 deal is smoking hot....but I am seriously considering the V8 version...also, wouldn't mind a little extra pep in the acceleration department.
  • ferkyferky Posts: 20
    In all 3 quotes that I've gotten from dealers, using Volvo Finance, I am required to pay at signing: first month's lease, $795 bank fee, $72 tax on bank fee and $1something for tax, tags, etc.

    I don't understand the people that have $0 at signing. Are those fees waived? Rolled into the monthly payments? What am I missing?
  • kyfdxkyfdx Posts: 57,679
    Rolled into the monthly payments...


    Prices Paid, Lease Questions, SUVs

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  • g4gibbg4gibb Posts: 2
    Is this a good lease deal in CT?
    Xc90 3.2 AWD 7 passenger
    premium package
    climate pkg
    versatility pkg
    bi-xenon lights
    sticker: 47, 942
    sale price 37,450
    36 months/15k
    $574 per month with tax
    $1850 due at signing (includes 1st month pmt)
  • g4gibbg4gibb Posts: 2
    Is this a good lease deal in CT?
    Xc90 3.2 AWD 7 passenger
    premium package
    climate pkg
    versatility pkg
    bi-xenon lights
    sticker: 47, 942
    sale price 37,450
    36 months/15k
    $574 per month includes tax
    $1850 due at signing (includes 1st month pmt)
  • bomb27bomb27 Posts: 8
    This is the car I'm looking at:
    2008 XC90 3.2L AWD
    7 Passenger
    Climate Pkg (bum warmers)
    Premium Pkg(oooo leather)
    Versatility Pkg (3rd row for short people)
    metallic paint

    $249 a month, $4989 due at signing
    4 Yr Warrantee, or 50,000 miles (standard)

    The residual is 63%, which equals $18500.
    So that means after 2 year lease, I will have paid $10965 (not including tax), and if I add the residual to buy the car outright, it's $29465...

    Here are other calcs on this SUV:
    The Cap Cost is $29408
    The MSRP is $44725
    The Invoice is $41908

    The math:
    What I pay after 2 years - CAP Cost = 29465 - 29408 =... $57???

    Does this mean I am not paying any interest? I believe the bank underwriting this is JP Morgan, or at least that is what I think I saw on the screen.

    So my first question is, is the 24 month deal that is going on a crazy deal?
    Some things that factored into my deal, as some of you may say that my numbers are not what match the advertisements.

    There are currently two offers in the NY Tri state area:
    1) Garmin GPS for $750
    2) $500 Trade in incentive
    I was able to get credit for both as I did not want the Garmin. This may be in the tri state only.

    So... if you factor that I got the extra $1250 to make my monthly payments $249 instead of $299, am I basically leasing a car at no interest?

    Also, am I doing something horrible by putting so much down?
    Since I'm doing a trade in, I just figured I would use that money to reduce my monthly.. not that I have a problem holding onto money, but still, I like the idea of just paying $250 a month...

    Anyway, this was a LONG post, but I would love some feedback, as I will decide on this by Monday. Is there something wrong with this deal that I don't get? I am willing to pay down so much because I'm doing a trade in.

    thanks, and this forum is awesome.

    (One comment I've learned from the forum, that there are risks in paying so much in down payment if you get into an accident that totals the car. Is this true?)
  • ferkyferky Posts: 20
    Hopefully someone with a lot more insight than me will weigh in, but your numbers don't make a lot of sense:

    You're saying that you were quoted a lease sale price of $29,400 on a car with an MSRP of $46,700???? $12,500 UNDER invoice? Even adding back in the $5,000 due at signing, your price is still more than $7,000 under invoice. I just don't see how that's possible. Plus, residual is based on MSRP, so a 63% residual (10.5k miles a year?) would put you at just over $28,000, only $1,400 under the sale price?? Consider me confused and extremely doubtful. I think you are missing something here. I'm about to post the lease deal that I just made. Not saying that it's the best, but it's waaaay off from yours. One of us is going to be wrong; if it's me, then I guess I made a crappy deal. See my post in prices paid and buying experience.

    Also, I understand how easy it can be to put lots of money down when you are getting the cash anyway from the trade-in, but you would actually be better off putting that cash in the bank, having it earn interest, and pay a higher monthly. If the car is stolen or in a bad accident, that money is gone -- even if it's 3 days after leaving the dealer. . . .
  • bomb27bomb27 Posts: 8
    Sorry, let me clarify. $5000 due at signing, $250 a month for 24 month is $11,000. The the cost to walk away from the lease and take the car is 63% * $45,200 = 28476, or roughly $28500.

    ADD these two numbers together, and yes, it's $39,500 for a $45,200 car.
    But 45,200 is the MSRP--the invoice on this car is more like 41908. Which means I'm getting $2408 off the invoice, and $5700 off the MSRP.

    Does that seem more in line? This is the deal I'm getting for sure.
  • bomb27bomb27 Posts: 8
    Granted this is why I am pursuing this lease deal--you have to ask for the $299 promotion offered in the tri-state area and ask for the Garmin promotion AND the trade in promotion to be factored into the lease. That totals $1250 OFF the 2 year lease, which by my calculations, makes this lease deal a 0% interest lease deal.
  • ferkyferky Posts: 20
    Well it doesn't make a heck of a lot of sense to me, but using your numbers and assuming that the full $5,000 due at signing is a cap cost reduction, then I agree with your figure of roughly $250/mo. before interest and tax. However, I don't know of any banks providing 0% lease financing -- there is no incentive for them to do so. You have either stumbled on a terrific deal (except for the $5,000 down - is that your figure or the dealer's? Could you still get 0% money factor with much less down?) or someone has made a mistake.

    Good luck and keep us informed. If anyone else has additional light to shed on this deal, I've love to hear it. :confuse:
  • bomb27bomb27 Posts: 8
    I believe I have the flexibilty to structure the deal with less down and more in payments, and I plan to do so--perhaps even trying to make it 2500 down and 354 a month.
    Again, I think I stumbled upon a combo that is really unique and YMMV, your mile may vary...
    Find a dealership doing the tri state area $299 for a 7 pass AWD 3.2L, with $4989 down, who is ALSO doing both the GPS deal AND the $500 trade in deal. And then get them to make all of these subtract against the lease.

    I'll tell you guys what comes out of tomorrows transaction and post all the final details.
  • bomb27bomb27 Posts: 8

    Residual of 63%

    2 year lease with 10500 miles
    $400 * 24 months + $2800 down = 12400 (there is also 1840 in tax, title, dock, 1st payment which I will not include)

    Lease cost(12400) + Residual(30048) = 42448

    Savings off or MSRP
    MSRP (47695) - (Lease + Residual) = $5247 off MSRP
    Invoice (44018) - (Lease + Residual) = $1570 off Invoice

    After taxes, 1438.95 (removed the $400 1st payment) I pay $140 off invoice.

    Not the most impressive price for a straight up purchase, but for a 2 year lease, it's not bad I think.

  • scottso2scottso2 Posts: 3
    Hads anyone seen this new lease special on the 2008 xc90 in the tri state area?
    MSRP 42500
    Cap Cost ~35000
    Cap Cost reduction 2995
    36 mos/12K miles
    residual 21275 (47.5%)
    mf .002
    pmt $399

    Looks like a good deal to me. It even posses the possibilty of buying out at below market in 3 years, maybe..

    Another thing Volvo is takign me out of my remaining volvo lease (3/mos at $500 a month).

    Am i missing something?

  • scottso2scottso2 Posts: 3
    Sorry thats an MSRP of $45200; not 42500
  • djrudjru Posts: 1
    I was wondering if anyone has leased/purchased the XC 90 3.2 AWD Special Edition yet, if so what their numbers looked like.

    Also, can someone please tell me what the money factor and residual is for this car on a 3 year lease?
  • Can you tell me what dealer you received the above lease special from in the tri-state area? I am looking for a similiar deal but need to be bought out of my current lease which has 4 mos remaining ($450/mnth). I wen to the dealer this past weekend and received a quote of $550/month (no money down).
  • nvnick1nvnick1 Posts: 9
    Carman -

    I think I missed the boat by waiting until April; can you tell me the current money factor, residual, and any lease cash available this month. In March, the 24 month lease was the best deal; I'll go 24mo or 36mo depending on current offers with 12k miles/yr. Looking at either the XC90 or the 09 Lexus RX 350 (I assume all 08's are gone by now; I think the 09's went on sale in early February). If you have the Lexus info (Toyota is regional; I'm in Indiana), can you put that in your reply; I'll also post in the RX forum. Thanks! Great forum.
  • scottso2scottso2 Posts: 3
    This was at Volvo of Danbury but the special expired March 31st. I turned it down becasue they would not take me out of my remaining 3 months on my Volvo lease ($500.mnth).

    I'm sure it will come around again probably in June.
  • Hi there --

    I have gotten a dealer offer on a XC90 Lease for a 2008 model with DVD, leather seats.

    Selling price: 38K
    MSRP: 49K
    Buyout: 22.7K
    36 months
    12,000/year milage
    5,200 down (includes tax and first month)
    monthly payment: $500/month

    Thank you.
  • nvnick1nvnick1 Posts: 9
    Just wondering if the current $4,250 marketing support that is good thru June 30th can be used inconjunction with a lease thru Volvo, or only one written by a third party, ie Chase or another bank???
  • volvomaxvolvomax Posts: 5,274
    That money is for purchase only.
  • jordon26jordon26 Posts: 5
    I'm interested in the following vehicle:

    2008 Volvo XC90 3.2T FWD 5-Passenger
    Wood Steering Wheel
    BLIS w/Power Folding Rear View Mirrors
    Premium Package
    Volvo Navigation w/Real Time Traffic
    Park Assistance Camera
    Convenience Package
    MSRP $45174

    Does anyone know the residual and money factors for a 36-mo. South FL lease?
    I see a lot of posts on 24-mo. leases, but not much on 36-mo. leases.

  • nvnick1nvnick1 Posts: 9
    Hi nvnick1. Lexus Financial Services' April buy rate lease money factor and residual value for a 24 month lease of a 2009 Lexus RX 350 AWD without the entertainment system with 12,000 miles per year are .00190 and 62%, respectively for consumers who qualify for its Tier 1+ credit tier. The numbers for an otherwise identical 36 month lease are .00190 and 56%.

    For the sake of comparison, Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2008 Volvo XC90 3.2 AWD 7 passenger with 12,000 miles per year are .00168 and 58%. The numbers for an otherwise identical 36 month lease are .00209 and 49%.

    Prices Paid: Buying & Leasing Experiences Forum

    Carman posted this in the Lexus RX forum.
  • Did I get a good deal on my lease, which I signed yesterday :

    3 yr / 15,000 miles ........ 3.2 AWD

    Climate Package
    Versatility Package
    Premium Package
    Convenience Package
    Blue metallic paint

    $4000 out of pocket (includes all taxes, fees, 1st month, other charges)
    $500 a month

    What do you think?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi nvnick1. 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 pass with 15,000 miles per year are .00168 and 56%, respectively. The numbers for an otherwise identical lease are .00209 and 47%. When negotiating your lease on this car, make sure to take the $3,500 cash incentive that is currently available on Volvo Finance leases of it into account. There is an additional $1,000 incentive for current XC90 lessees.

    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Volvomax is right, nvnick1. The $4,250 cash incentive that you mentioned is only available on XC90s that are paid for with cash or financed through a bank other than Volvo Finance. Having said this, Volvo is currently providing a $3,500 cash incentive on leases of this model through Volvo Finance. In addition to that, it is providing another $1,000 to current XC90 lessees.

    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi jordon26. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Volvo XC90 3.2T 2WD 5-passenger with 15,000 miles per year are .00247 and 46%, respectively. The money factor for an otherwise identical lease with only 12,000 miles per year would be the same, but its residual value would be 2% higher. When negotiating your lease on this truck, make sure to take the $3,500 lease cash and $1,000 XC90 owner loyalty cash that are currently available on it into account.

    Prices Paid: Buying & Leasing Experiences Forum
This discussion has been closed.