Volvo XC90 Prices Paid and Buying Experience

lev_berkovich · March 2004

What a coincidence - my pick up is scheduled for June 29th as well. So, I would probably see you at the Visitor's center there.

adp3 · March 2004

that is funny, lev

my pickup is scheduled for June 28 but I plan to shift it to June 30

we then plan to drive south and over to Copenhagen for 5 or 6 days

lev_berkovich · March 2004

We are going all the way down south to Italy through Germany, Czech Republic, Austria, than up to Alps and fly back home from Paris.
Three weeks, 3000 miles.

adp3 · March 2004

nice!

marylander · March 2004

Hello everyone,
I am new to this board. Took my first test drive yesterday......loved it! Can anyone in my geographic area share/recommend their purchase and dealership experiences? Thanks!

lev_berkovich · March 2004

There is no better experience in any geographic area than the Overseas Delivery program.
The savings are incredible, roughly 10% of MSRP,
the list of options is much bigger (you also can get an individual options instead of package - heated seats, or get the option that is not available locally at all - speed sensitive steering on 2.5T AWD)
Volvo fly you and your significant other to Europe for free and gives one night free in a hotel in Gothenburg.

You also get unforgettable, truly VIP treatment at the Factory Delivery center, and been able to see how your car is built - is a life time experience on it's own.

I've done it once in 2000 for my S80, going again in June for XC90, and planning to do it again in a couple of years for my daughter's S40.

Look for the Overseas Delivery program at http://www.volvocars.us/FinancialServices/Overseas

adp3 · March 2004

and OCD is a short flight for you east coast folks (compared to what we west coasters have to deal with).

Then again, by flying over the pole, maybe our flight isn't as bad as I think it will be....

If you can't get an outstanding deal at your local dealer, then go for the overseas delivery, even if you only go for a long weekend.

bsk · April 2004

lev & adp3,

My wife and I will also be picking up an XC90 in Gothenburg on June 29 (our 13 year anniversary). We bought our 2000 S70 through the X-Plan, and were prepared to do the same with an XC90 until I saw the information on the OSD. The OSD prices were about $1500 less than the X-Plan, plus the 2 free tickets and the night in Gothenburg. We could either give that $1500 to the dealer or use it as a nice start for a vacation in Sweden. We'll be cruising down the coast and back up to Stockholm, and then cutting across the Lake region back to Gothenburg. We looked at the OSD tour packages, but decided to plan our own trip (Countryside Hotels is a great resource of small select hotels and inns throughout Sweden). The only "catch" to OSD, of course, is that we ordered the vehicle in March and it won't be in our driveway until probably September - something our dealership stressed very hard (they wanted to sell what was on the lot). We didn't have the easiest time with dealership about OSD (something that is common, unfortunately, from what I've read elsewhere), but they finally came around. Now, we're just counting the days. Hope to see you both at the FDC!

adp3 · April 2004

bsk: I believe my current pick up day is June 30. Leave some meatballs for me.

:-)

lev_berkovich · April 2004

I'll see you in Gothenburg.

And here in Los Angeles, the dealer was, on contrary, very accomodating to the OSD. I do not see any reasons for them not to be - dealer still have some kick-back from Volvo (I've heard - $300) and all they need to do - just fill up a couple of simple forms.

We've got very nice test drive - over an hour - freeway, city drive, mountain drive - as we wanted to confirm to our self that 2.5T will be sufficient.
And I like Calabasas Volvo a lot. The service department is excellent, and sales is very courteous and professional.

bsk · April 2004

I agree with the 2.5T, lev. I was a little worried about it prior to the test drive. We also drove the Acura MDX (I know, there is another Board for that topic), but the Acura actually felt a little heavier and sluggish to me. Strange. Anyway, we thought the Acura was a great vehicle, and no doubt we would have loved it and loved the quality (we have a 94 Accord with 180K miles that has been totally worry-free), but we just liked the Volvo better.

Our dealership (in St. Louis) is fine - we've used them and their service dept. for our 2000 S70. They just really would have preferred to sell a vehicle off their lot, and that's fine, but that's not what we wanted. I think some dealerships are more OSD accomodating, for whatever reason.

adp3, I'll make sure lev doesn't eat all the meatballs.

adp3 · April 2004

bsk and lev: make sure you take some pics of your new XC90 while in Sweden and post them on that "other" site. I don't know why more folks don't post.

lev_berkovich · April 2004

No problem,
And while in Germany, Czech Republic, Austria, etc., as well...

larsca · April 2004

A recent online check with the local Volvo dealers in SoCal made me realize something. For instance, Volvo Carlsbad has 26 brand new XC 90s (most of them T6) on their lot, just waiting for someone to buy. In comparison, they have very few XC 70s or even V70s. Does this mean that the boom of sales for the XC 90 is over and that dealers have overstocked on them? Can we expect to see the prices drop soon? Also, when considering that most motor magazines state that the engine choices in the XC 90s are not optimal, and rumor has it (maybe more than a rumor?) there will be a V8 engine available for the XC 90 late this year, is sales dropping on the XC 90 in anticipation for this new engine?

My question is simple. People who just bought their XC 90s, are you getting them for close to invoice nowadays?

gugal · April 2004

Can OSD prices be further negotiated? Or are they fixed?

lev_berkovich · April 2004

My understanding is that the only room for the negotiation is a relatively small fee that dealer gets for filling up the paper work.

So, I would say - No,

And the prices are fixed.

I have read some anecdotal evidences here on this board about the price negotiations for the OSD, but I take them with the huge grain of salt.

My personal experience (twice), experience of the people I personally know and the general understanding of the OSD program, makes me believe that you have very little chance there.

gugal · April 2004

Thanks for the info. I was going to buy an XC90 the traditional dealership route and was dreading it. Now I plan on going the OSD route. I plan on buying by June. Any advice regarding the best time of year to go? I don't have more than 4 or 5 days to spend there. What are your thoughts on staying/things to do in Gothenburg?

lev_berkovich · April 2004

Number one - I will urge you to hurry-up. I have heard that the 2004 OSD quota is expired, or is expiring.

The ordered car takes 12-15 weeks to build, so you might be too late for June.

Gothenburg itself is pretty boring. This is typical industrial European city.
I would strongly recommend to visit Stockholm, it's one of the European gems. It's very lively and beautiful.
It is within the easy 3-4h drive from the Gothenburg, and the route by the lakes is very scenic on it's own.

Summer is good there. It's not too hot.

I would recommend two options:
1. Pick-up and drop off in Gothenburg.(Three advantages - it's free, you have one night for free and you can take the factory tour).
- Fly in on Sunday, do all the sightseens in the afternoon, stay overnight for free
- Take a delivery and a factory tour (very entertaining).
- Drive to Stockholm and spend three - four nights there.
- Drive back to Gothenburg on Friday, drop the car and fly home.

2. Pick-up and drop-off in Stockholm. (You have to pay some nominal fee, but you do not have to drive.

Volvo will help you with the hotel arrangements. The prices from their travel agency are decent.

Volvo also offers a couple of Scandinavian tours.

You will find all the details on the Volvocars.us web site

http://volvocars.us/FinancialServices/Overseas/

zeen · April 2004

Today Volvo advertised a lease on a well-equipped XC90 T5 with Premium and Climate package for $1800 down and $369/mo. for 42 months, 12k miles/yr. This seems like an incredible deal to me. Does anyone have any opinion about this deal? Also, does anyone know if the Ford employee discount extends to Volvo?

yrneh1 · April 2004

I don't see it on Volvo website.

zeen · April 2004

It was a full page ad in the auto section of the Philly paper. I think it's a national promo. The dealer just found out about it and was still gathering info. It requires a high credit score.

bsk · April 2004

Zeen,

I would assume the Ford employee discount extends to Volvo, but I'm not certain. The reason why I believe that it would is because Volvo participates in Ford's X-Plan program. (The X-Plan is special discount given to companies with which Ford does a lot of business). We bought our 2000 S-70 with the X-Plan and were prepared to use it again until deciding on the OSD.

bsk · April 2004

Gugal,

We'll be in Gothenburg in late June (the same time as lev). I've never been there, but from what I've read it is supposed to have a good art museum and botanical gardens. It appears, however, that most of the attractions - cultural and not - are in Stockholm. Stockholm looks like a beautiful, beautiful city, and we will be spending about three or four days there.

If you can't make it to Stockholm, there are quite a few interesting little seaside towns both north (Bohuslan Coast)and south(Bastad, Molle) of Gothenburg if you only have a few days, and the towns and castles around Lake Vanern (huge lake) are very close to Gothenburg. From what I've read, it appears that most of the tourist sites close up sometime in September or October, though.

The Volvo travel packages can be pricey, but they do include a lot of your meals. If you have the time, energy and courage, though, you can plan your own trip. Countryside Hotels is a federation of small, exclusive hotels throughout Sweden, and you can get some good deals through them (especially during the summer using their summercheques); in fact, many of the locations used in the Volvo travel packages are Countryside Hotels. It would be a shame, however, not to spend more than 3 days over there.

lev_berkovich · April 2004

I went on a short exploration and want to share the results with you.
Guys - we are rotten spoiled here in US, especially with Volvo, being the major market for them.

The XC90 in Russia
2.5T manual - $61,400 5 seats, $63,800 - 7 seats
T6 - auto - $72,500 and 74,900 respectively

Australia:

XC90 2.5T - $53,000
T6 - $63,000

Germany

mid-range 2.5T auto/ 7 seats - $56,000
premium 2.5T auto/7 seats - $58,700
etc., etc.

All prices are converted to USD.

zeen · April 2004

See my description of the current lease deal above. I have a friend who works for Ford who offered her employee discount. Does anyone know if I can get a better deal than the current lease promo using that discount? The dealer told me this lease deal is rock bottom and the employee discount won't help. Any advice?
Thanks

grossie · April 2004

Zeen- I am on the prowl for the 2.5T and I have seen nothing near that good. It seems to me to be off by about $100per mo. compared to what's available in Chicago.

Has anyone else seen this promo elsewhere?

zeen · April 2004

That deal has been in the auto section of the Philly papers for about a week now. Maybe it's just an east coast promo but I would check with the dealer. I had to bring it to my dealer's attention. The lease is through Wells Fargo.
The only catches are you need a 730 credit score, and metallic paint and third row seats are extra but I don't need them.

grossie · April 2004

I've got the score, but I need the 3rd row and I'd like metallic paint. This still seems like a good deal.

My wife has told me she heard this deal on the radio here, so I guess it's in the midwest too.

Do you know how long this is on for?

zeen · April 2004

The salesman told me it ends 4/30. Of course, these promos are often extended.

azmom1 · April 2004

Appreciate reading all of this info, but I have a question I haven't seen addressed: How much of a discount should a car used as a demo get? Less than 1000 miles on the vehicle. Anything I should know? Thanks

davek4 · April 2004

A Volvo dealer in MI told me today that Volvo is offering "$2000 off a three-year lease of a T6 effectively lowering monthly payments." Has anyone else heard of this offer? And, since I qualify for Ford's X Plan, would that help too?

grossie · April 2004

azmom- There are many issues here.

First, is this a lease or a buy? If a lease it's less of a problem since the car will belong to someone else after 36-48 months.

If it's a buy deal, here are a few things to consider. 1) Who drove the car? Was it used as a loaner for service? If so, don't buy it. I know I abuse the hell out of rentals/loaners and so would 200 other drivers if this a loaner. (50 miles each). 2) What model year is it? If it's an 04 then you haven't lost the year yet on resale value. You have however lost a half year (05s due out in the fall), but so have all of us who would buy an 04.

There are a number of other things to consider, I just can't remember off hand right now. I have this info in a file. Check out fighting chance dot com for some useful info. It's worth the money.

I'm not sure how much of a difference in price you should expect, but I would imagine it should be a few k.

zeen · April 2004

Dave
If you find out if the X plan helps further on the current lease deals, let me know. My dealer tells me that the current lease deal from Volvo on the XC90 T5 is rock bottom and the X plan won't help. My friend at Ford said that shouldn't be the case.

clare · April 2004

I am looking to buy an XC90 TC AWD. What exactly is the invoice price and how much above that should I pay for an XC90? The dealers all seem willing to negotiate which is fine as I don't want to pay MSRP Prices. Also, how much off can I get if I am an X-PLAN member?
I live north of San Francisco so there are plenty of dealers in the area.
Thanks in advance.

lev_berkovich · April 2004

Sorry for singing the same tune one more time, but you actually buy the XC90 below the dealer's invoice if you buy it through the Overseas delivery program with no negotiations.

The dealer's invoice for the 2.5T AWD starts at 34,264 (according to the MSN and Edmunds) and the OSD price for the same car starts at 33, 640.

Plus, there is a lot of "a la cart" options with the OSD program that either only available with the package locally (the heated seats) or not available at all (the speed sensitive steering or auto dimmed rear view mirror on 2.5T). It could be a small, but nice additional convenience.

zeen · April 2004

On the $369/mo. lease deal which runs through 4/30, the X Plan does not help at all. The price is rock bottom. I confirmed this with 2 dealers.

clare · April 2004

Lev,
While it would be great to do the OSD way, it is not real feasible for me at the moment. So, I am trying to get the best deal I can. I looked at the prices on edmunds and the invoice price is 2K off typically. Does anyone know if the X PLAN price is the same as invoice?

lev_berkovich · April 2004

clare,
Can I ask you a question?
You said that OSD is not feasible for you. What is it, that stays between you and the OSD? The long wait, the really tight work schedule that does not allow even for the 3-4 day break?

My sincere apologies for asking, but I am curious. I was so awed by the OSD program and it makes so much financial sense (even air fare is paid, on a top of the "rock-bottom" price) that I always surprised learning that people hesitate to do it or, even stronger, find it non-feasible.

I will appreciate your answer.

Lev.

clare · April 2004

Lev,
Had I known about the OSD sooner, I might have been tempted. However, my work schedule right now does not permit me to take 4 days off and then there is a wait of 3/4 months. Plus, we would be coming from CA which is a 13/14 hour flight alone...factor in jetlag, time difference and then do the same thing a few days later. Is it really worth that much wear and tear on your body??

lev_berkovich · April 2004

I do not consider it as a wear and tear on my body.

I just love to travel, and the OSD, besides anything else, is a perfect opportunity for the really-really inexpensive travel - your air fare is paid, you drive your own car, so the car rental is taken care off, etc., etc.

And on a top of it - absolutely no negotiation hassles to get a great price, and last but not least totally different, for the better, buying experience in Gothenburg. I felt like a king back in 2000, being picked in the airport, ridden the Volvo S80 stretch limo to the hotel, and then from the hotel to the factory next morning, had a truly VIP reception at the delivery center, etc.

So,
I, probably, is not going to change your mind, but I want you to be tempted... :-)

P.S.: I live in CA too and already have scheduled my second OSD for June.

zeen · April 2004

If you purchase, I understand from my Ford friend that the X plan is $200 under invoice. However my dealer told me it's 2% over invoice. I'm not sure which is correct. Whoever gave you the X plan should be able to tell you

clare · April 2004

Lev,
Yes, but you are factoring in a vacation....had I know sooner I might have been able to plan it better. Have a great time on your trip...it sounds very nice.
The other issue too is how long does it take to have the car shipped. I might not get the car until Sept. But, I do appreciate the advice and it is something I will bear in mind for the future.
I am curious as to where the " Invoice Price " comes from?? I know it is on edmunds.com, but who calculates this? I know the dealerships have to make money too, so if people are getting good deals from dealers which is close to OSD then how much is Volvo really reducing costs by selling directly. Some people on this site have gotten incredible deals...

lev_berkovich · April 2004

Thank you, I sincere wish you could do that and enjoy it.

It takes 6-7 weeks to get car here on the West coast, since you dropped it in Europe.

Now, when it comes to the incredible deals...

I am a bit suspicious about them, some postings do sound in-(non) credible.

However, XC90 T6 is moving slow, so I would not be too surprised that some dealers can sell them at the cost, or even below their cost to decrease the inventory and clear room up for the new cars.

Dealer invoice is public info, I believe, however, dealer gets the pay-back from Volvo, which brings the actual dealer's cost below the invoice.

Volvo is capable of selling the cars directly via OSD program below dealer invoice because they do not have that pay-back to the dealer, but a smaller fixed fee for filling up the OSD paper work. It is just $300 as of my knowledge.

Plus, Volvo gets some incentives from the Sweden government for bringing tourists to the country.

Plus, Volvo saves a lot on better cash flow. Dealer pays on terms, you pay up-front. Car has to be paid off one month prior to the delivery. And anybody, who runs their own business will understand this part...

I have read some postings here that the OSD savings are also contributed to the fact that the Volvo Cars of North America is cut from the deal and you buy car directly from Swedish Corporation. But - all the paper work that I have received related to the purchase, including the Order confirmation, and this is the only proof of purchase I have, is from the Volvo cars of North America (VCNA).

So I have tendency to believe, consider the common law of land, that I have purchased my car from VCNA, as I do not believe that they will forge the documentation and put their name on the document where they have no rights to do that.

clare · April 2004

So, if it takes up to 4 months to get the car manufactured and 2 months to have it shipped, I could be waiting 6 months for the car. Hmm...that would be too long, but, something to keep in mind for the future ( better planning and all that... ). I just got accepted into the X Plan program so I hope I can get a deal from that.

tidester · April 2004

You might want to read this: Edmunds.com How We Calculate New TMV

tidester, host

clare · April 2004

Thanks tidester.....very helpful. You wonder how dealers can make money on cars as there does not seem to be a huge mark up. Or, am I missing something??? I guess their profits come from leasing and financing...

tidester · April 2004

Or, am I missing something???

Welcome to the murky world of selling cars! There is a whole slew of profits built into the system including hold backs, bonuses and the like. Trust me, they aren't starving!

tidester, host

tidester · April 2004

If you click your browser's page refresh button after posting a message then your message will be duplicated. (Feature of our software?:-)

To avoid this, click on the "Recent messages" link below instead. After that you can refresh all you want!

tidester, host

clare · April 2004

Lev,
One thing....what happens if you buy this car in Sweden and then you bring it to the US things start to go wrong with it. Who do you bring it to? I am just curious is that has happened to people and how they dealt with it.

lev_berkovich · April 2004

You buy a car that is built by American specs and is covered with full US warranty as soon as it hits the US shore.

You just go to the local dealer of you choice and get serviced as any other car sold here.
Technically, you purchase you car here, in US, and the transaction is governed by the local laws, including "lemon" laws. You just take a delivery in Europe.

You do not buy your car with OSD program in Sweden.

Volvo XC90 Prices Paid and Buying Experience

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