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2013 and earlier Volvo XC90 Lease Questions



  • 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: 219
    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: 5,274
    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: 5,274
    Programs due next week.
  • volvomaxvolvomax Posts: 5,274
    Yep,thats pretty much what is going on.
    US Bank is the only company doing leasing at the moment.
  • volvomaxvolvomax Posts: 5,274
    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: 5,274
    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: 5,274
    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: 5,274
    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: 219
    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: 64,772
    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...


    Prices Paid, Lease Questions, SUVs

  • 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: 5,274
    Cheap leases are going to be hard to find for awhile...

  • volvomaxvolvomax Posts: 5,274
    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: 120
    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: 5,274
    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: 219
    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?
  • 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: 219
    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?
This discussion has been closed.