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2013 and earlier Volvo XC90 Lease Questions

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Comments

  • worcester1worcester1 Posts: 20
    Thanks Car_man,

    I am specifically interested in the XC90 2.5T FWD with 7-Passenger seating.
  • joegolfer1joegolfer1 Posts: 17
    Car Man

    These incentives through independent banks look great. Do you know the money factor and residuals at these banks? I am interested in a XC-90 AWD V8 7 passenger.
  • ruoffruoff Posts: 4
    Approx. $48,415 (The MSRP was 50,415 and the sales person said they were taking 2,000 off). They tried to talk me out of using anyone other than Volvo Finance for the lease. They said that Volvo is much more forgiving when it comes time to return the car. What do you think?
  • trumastrumas Posts: 1
    Car_man,

    I am about to pull the trigger on a lease for a 2006 XC90 V8 with silver metallic, touring pkg, climate, xenons and int. air quality at the following numbers:

    MSRP = $50915

    Price = $44837

    Terms = 39 mos.

    MF = .00209

    Residual = $25966.65 (51%)

    Acq Fee = $595

    Down Pmt = $930 (first payment and license fees)

    Monthly payment =$699

    So my question is: deal...or no deal?

    Thanks in advance!
  • ricknzoericknzoe Posts: 4
    Volvo XC90 w/MSRP 45,045

    Quoted Sell price of $42,000

    36 mo lease - 12,000 miles per year

    With security deposit of $675 and first payment ($661) due at signing, is the quoted lease payment amount of $661 plus tax a good deal?

    Thanks in advance!

    Rick
  • joegolfer1joegolfer1 Posts: 17
    Car man

    My current lease is about to expire. i plan to lease another XC-90. I want a V-8 with rear entertainment. Can you please give me the MF and residuals for June.
    Also previous messages mention independant banks. Can you provide the MF, residuals and any incentives these banks may offer.

    thank you in advance for your assistance.
  • ajp00ajp00 Posts: 17
    Car man,

    To piggy back on joegolfer1's comments. I am interested in leasing a XC90. My dilema is the following. Grab an '06 V8 now or wait and get the '07 I6 (not a fan of the 2.5 enginge). In terms of getting a better deal, would the '06 V8 be the way to go? I am little concerned about the gas mileage on the V8. I need to get the car by the end of Sept., which I believe is when the '07 will be rolling out. Any advice, I'd appreciate. Thanks.
  • zbownaszbownas Posts: 3
    About to sign for this lease, does it look good to you?
    MSRP $42340
    Rate .00057
    Residual .56
    Residual $23710
    Trade In 2005 Toyota Sienna XLE, no money down
    $512/month
    Thanks!!!
  • jquiltyjquilty Posts: 10
    I'm negotiating with a dealer on a 2006 2.5T AWD with following Options:
    Premium
    Versatility
    Navi
    Climate Package
    Convenience Package
    He quoted me a purchase price of $40,470 which seemed very fair. When I asked about leasing he also offered me what looks like a good deal through Volvo leasing:
    36mos 18Kmiles/year
    Money factor: .00074
    Res: 52%
    Due at signing:$1974 (first mo, security, disposition and lease acquisition fee.Note: this seems high and I plan to go back at him)
    Payment:$645/month including PA 9%Tax
    My issue is that the selling price he's using in the lease is $43,000, not the $40,470 he quoted me for the purchase. He claims I'm basically trading off the greater discount on the purchase price for the subvented money factor on the lease promotion through Volvo finance.
    Everything I've read leads me to believe that the price I negotiated should be the price regardless of how I choose to finance it.
    Any words of wisdom before I overpay on this lease? My wife is in love with this car (we're actually coming off of lease on our 2004 XC90 and replacing it with the 2006) and we want to wrap things up this coming week.
    Thanks
  • joegolfer1joegolfer1 Posts: 17
    unfortunately I do not think the lease deals on the XC=90 are attractive at this time. My lease on a 2004 XC-90 T6 just expired and i wanted to get a new one. A few dealers I talked with said that right now the deals on leases are the worst they have been in months.

    I actually just leased a BMW X-5 instead because it was cheaper. We really enjoyed the XC-90 however we do feel the X-5 is an upgrade. Of course we do not need the 3rd row seat.

    My X-5 numbers were:
    50,170 msrp
    57% residual
    money factor = .00115
    Purchase price = 47,670 (msrp - 2,500)
    $617 per month plus tax = 648.
    this is for 36 months at 15,000 per year.

    Hope this info helps.
  • haajahaaja Posts: 1
    Car Man:

    The lease on our 2002 XC70 is about to expire. I've always admired the XC90 but we chose to wait to lease one until the bugs were worked out. So the time has come. I must say the board about all the problems people are having with their XC90s is very scary. But this would be our 4th Volvo in 20 years. Surely that should count for something...(said with a healthy dose of skepticism).

    So here are the 2 offers from our NY dealer:

    2006 XC90 2.5T AWD
    Premium, Climate and Versatility Pkgs
    RSE
    Metallic Paint

    Term: 4 year / 15,000 miles

    OPTION #1 (because I have some extra cash on hand)
    MSRP $46,785.00
    Selling Price $43,997.00
    Residual %/Amt 45% / $21,053.25
    Money Factor 0.00109
    Adjusted Cap Cost $41,497.00
    Rebate (Volvo loyalty) $500.00
    Cash Cap Reduction $2,000.00 (my request)
    Taxes $1,977.34
    Base Payment $494.09
    Security Deposit $0.00
    Upfront fees $662.50
    Due at delivery $5,133.93

    OPTION #2
    MSRP $46,785.00
    Selling Price $43,997.00
    Residual %/Amt 45% / $21,053.25
    Money Factor 0.00109
    Adjusted Cap Cost $43,497.00
    Rebate (Volvo loyalty) $500.00
    Cash Cap Reduction $0.00
    Taxes $1,985.07
    Base Payment $537.94
    Security Deposit $0.00
    Upfront fees $662.50
    Due at delivery $3,185.51

    Are either of these good deals? Or should we keep shopping?
    If these deals don't look good to you, then why? Nothing would please me more than to drill the salesman for a better deal or to simply walk away. (I always envisioned that kind of scenario and have made a stern promise to myself that if the deal sucks then I will simply walk away.)

    Thank you very much in advance for your assistance.

    haaja :blush:
  • qbrozenqbrozen Posts: 25,962
    I don't know the details of the deal, but I just saw a TV commercial this morning for an Xc90 2.5t for $409/mo for 24 months with only $3k due at signing. For what its worth.

    '18 BMW 330xi; '67 Coronet R/T; '14 Town&Country Limited; '18 BMW X2. 47-car history and counting!

  • we're looking to lease an xc90. it will be our first lease. we've heard alot about lease takeovers where you simply take over someone's existing lease payments. what is your point of view about this option versus a traditional dealer lease? also, when shopping for a lease takeover do we need to care about anything beyond the monthly lease payment? (since the down payment and other terms have already been set by the original buyer)
  • here's a deal we were quoted in LA. is it good?

    2006 White XC90 2.5T FWD
    MSRP $42340; "sale price" $41K.
    36 month lease

    3K down 463.12/month

    Lease option to buy at end of 36 month: 25977.00
  • volvomaxvolvomax Posts: 5,274
    A couple of things to consider, how many miles per year on the lease and what the over mile charge is.
    Also, who is responsible for the lease. Some lenders won't allow a complete substitution, Volvo Finance for instance.
    The original party is still on the lease and can still effect the lease.
  • we drive relatively little (under 8K a year) and the vehicles we've seen have plenty of miles left available to us so we should be fine on that front. is there some kind of "catch" we're not aware of?
  • volvomaxvolvomax Posts: 5,274
    the only catch is the same one as getting a new lease. Make sure you have enough miles.
  • Hello ajp00. It is difficult to say what Volvo's lease program will be like on the 2007 XC90 until it is officially available at dealers. However, it is probably fairly safe to assume that it would be much less expensive to lease an '06 model at this point than it will be to lease an '07 model when it is first introduced. The '06 V8 is an option as well. It has a decent lease program available on it. Its stated gas mileage is actually only 2 mpg worse than the 2.5's, 15 mpg city / 21 mpg highway versus 17 mpg city / 23 mpg highway. Of course, I don't know whether this is actually the case in the real world. you may be able to get additional feedback on what sort of gas mileage these trucks get by visiting the following discussion: "Volvo XC90 SUV".

    Car_man
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  • Hi zbownas. It's difficult for me to give you my opinion of this deal without knowing what this vehicle's selling price is and how much equity, if any, you have in your trade. If you let me know I'd be happy to share my thoughts on it with you.

    Car_man
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  • Hi jquilty. The money factor that you were quoted for this lease is right in line with Volvo Finance's current buy rate for this vehicle. This is a good thing because it means that the dealer that you are working with is not trying to mark your truck's money factor up to add additional back-end profit to your deal. The reason why you were were quoted a higher selling price for a lease of this truck than if you had financed it or paid cash for it is that Volvo is currently providing $3,500 dealer cash on '06 XC90s that is not compatible with Volvo Finance's special lease program. You can choose either the special lease program or the dealer cash, but cannot double dip and take advantage of both.

    Car_man
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  • jquiltyjquilty Posts: 10
    Car Man:
    Thanks for the response. We took the lease deal from Princeton Volvo. I'm actually paying less per month for my 06 XC90 with 18K miles per year than I was for my 04 with 15K miles.
    For anyone in the Central Jersey or Northern Philly area, I highly recommend these guys. They were very fair, willing to negotiate via email and really buttoned up. They also have a lot of 06 XC90's on their lot.
    jquilty
  • Hi haaja. The lease money factor that you were quoted for the XC90 that you are interested in is right in line with Volvo Finance's current buy rate for it. This is a good sign because it means that the dealer that you are working with is not trying to mark your truck's money factor up to add additional back-end profit to your deal. As far as this truck's selling price goes, a fairly similarly equipped 2006 '06 XC90 2.5T has a spread of nearly $3,300 between its full MSRP and dealer invoice price. You are being given a discount of $2,878 on this truck, which looks pretty good to me. So, both of the main profit centers on this lease, the money factor and selling price, both look good. If you like the truck, I personally don't see any reason not to pull the trigger on the zero down deal. It is in your interest not to make a capitalized cost reduction when leasing because in the event that your leased vehicle is totaled in an accident or stolen and never recovered your cap cost reduction essentially disappears.

    Car_man
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  • Hello burroughs1. I personally don't see much of an advantage to assuming another person's lease when consumers are often able to negotiate as good a deal, or an even better one on their own. One that I can think of about assuming a lease are if you want a really short term deal, like 12 months. In that case, it would be cheaper to assume a lease than to lease a brand new model. Of course, you would be getting a used vehicle instead of a new one though. The only other positive about assuming a lease would be if the person who you are assuming it from sweetened it by originally making a large down payment or by providing you with some sort of cash incentive to assume their lease. In most instances, consumers will be better off just negotiating an attractive deal on their own than they would be assuming an existing lease.

    Car_man
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  • Hello burroughs1. A base 2006 Volvo XC90 2.5T 2WD has a spread of $2,130 between its full MSRP and dealer invoice price. You are being given a discount of $1,340 on this truck. This is a decent price, but if you are in an area with a decent level of competition I personally would not be surprised if you were able to beat it by a couple hundred dollars by shopping around. Try stopping by the following discussion to see how much other community members have paid for similar vehicles lately: "Volvo XC90: Prices Paid & Buying Experience".

    Also, you really shouldn't make such a large down payment when leasing. If your XC90 is totaled in an accident or stolen and never recovered during your lease, your down payment essentially disappears. I will work up a sample lease payment based upon zero cap cost reduction for you so that you can see what it would be like. According to my calculations, if you were to lease a 2006 Volvo XC90 2.5T FWD with an MSRP of $42,340 and a selling price of $41,000 through Volvo Finance right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $529.

    Car_man
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  • You're welcome, jquilty. Congratulations on your new truck. Enjoy!

    Car_man
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  • thinking about leasing an xc90 5 cylinder. MSRP is 47,700, sale price is 44,261. MMF is .00074 and residual it 56%. OOP is around 3,662 includes first months payment, security, bank, tax and registration (in NYC). Payment is $540/mth on 36 mo lease, 12K/yr. SUV is equipped with nav, versatility package, premium, convenience, climate and metallic paint. good/bad deal?
  • dpjoachimdpjoachim Posts: 1
    I was quoted a better lease price for the xc90 v8 Ocean than the v5. The dealership has a special deal going on.
    $2000 down
    $430/ month (includes everything)
    36 months
    Comfort pkg. incl.

    I have 3 months left on my current lease....mercedes c320. Do you think think this deal will be around in sept? I feel as if it is a great deal but I don't want to pay 2 car payments for 3 months.
  • We are looking into Leasing a XC90 but we haven't stepped foot into the dealership yet, we want to be throughly prepared. Is there ever an offer before the lease terminates to re-lease the car for a lower price? If so how much in general? Is preventive maintanence included with leases?
  • zamozamo Posts: 122
    Margate Volvo, Margate, FL

    2.5T, Premium Package, Versatillity Package
    $0 due at signing
    $458/month for 24 months

    23 payments remaining as the dealer paid for the first one, security deposit and other fees.

    10,500 miles per year
    Add tax to the payment

    I was trying to get to $449, but i guess they were just pushin it to the cent.

    Rent Charge on this lease $16.06, 0.01% APR, required 740 beacon score.

    New Volvo owner with above deal here
  • pkh540pkh540 Posts: 24
    Volvo is currently advertising a XC90 V8 with a 24 mo lease for 389.

    But I've been hearing of others actually paying BELOW invoice. As an example Edmunds currently lists pricing for on '06 XC90 w/V8, touring, climate and metallic paint at 50,040 MSRP; 46,877 Invoice and 46,010 TMV.

    They also show the following rebates and incentives:
    > 500 Cash to Customer (if you finance with Volvo finance)
    > 2,000 Cash to Customer (Conquest bonus cash - does anyone know what that means?)
    > 1,500 Cash to Dealer (for marketing support)

    Today I ventured into a local dealer (www.sandbergvolvo.com) which has an XC90 with an MSRP of 50,775 on sale at 44,996. However, if I want to lease that same XC90 he HAS to charge 48,839 as the gross cap cost as stipulated in the current lease ad. He insists that "Volvo requires" him to charge that or he can not offer the lease deal with the money factor or residual used for the current advertisement... (BTW, the car also had the convenience package which they were going to throw in for free as this was the only vehicle on the lot that could meet lease parameters.)

    But the money factor and the residual value are sponsored through the financial arm of Volvo and are offered to help dealers sell remaining inventory before the '07's arrive. Volvo US already made their nut on the vehicle and allow dealers to sell the vehicle for what ever they want which is why you can buy cars closer to or sometimes below invoice based on market conditions and various incentives offered through the factory.

    At this point he asked me if I was calling him a liar... and as this is not the way I wanted to start my weekend and certainly didn't need the aggravation, I walked. :P

    I'd appreciate any help you could provide; just looking to find out what others may have been able to negotiate for the gross cap cost on this fantastic lease deal.

    BTW, could you confirm the residual value and money factor (I seem to recall is was something like 74% and .0001 respectively).

    Thanks!
This discussion has been closed.