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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]

This discussion has been closed.