Last post on Apr 13, 2013 at 11:29 AM
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Volvo XC90, Car Leasing, SUV
#1472 of 1650 Volvo XC90 Sept 2009 Lease Incentives & Terms
Sep 03, 2009 (10:25 am)
Here's the latest info for 2009 model year (2010 in parentheses):
Volvo Loyalty Cash 1500 (1500)
Alt Lease Support 3000 (4000)
Marketing Support 1500 (500)
TOTAL 6000 (6000)
US Bank Lease Terms for 2009 model year:
36 mos/12k mi per year - 41% residual value, .00212 money factor
36 mos/15k mi per year - 39% residual value, .00212 money factor
48 mos/12k mi per year - 32% residual value, .00207 money factor
48 mos/15k mi per year - 30% residual value, .00207 money factor
US Bank Lease Terms for 2010 model year:
Add 1% to 2009 RVs, same mf's
Took me a couple days, hope this saves others some time.
#1473 of 1650 Re: Volvo XC90 Sept 2009 Lease Incentives & Terms [goucla]
Sep 03, 2009 (10:35 am)
Wow, those residuals are horrible. Better to buy a CPO instead
#1474 of 1650 Re: Volvo XC90 Sept 2009 Lease Incentives & Terms [zamo]
Sep 03, 2009 (2:27 pm)
Not really, if you're comparing leasing new vs CPO, the money factors, residuals and monthly payments on a CPO would be much worse, so the CPO payments would likely be higher than new car payments. Plus there's far less transparency/uniformity with used cars so dealers have better chances of ripping off customers than with new.
Independent banks don't like to finance leases for cars that would be 5-8 years old when they come off lease, there's too much back-end risk on residual values so they whack em down low in used car leases.
Plus, you don't get the 5-year safe+sound maintenance-free coverage from new...
All in all, you're way better off leasing new than CPO.
And don't let any used car salesman convince you otherwise. If they do, post your deal terms on this board first before pulling the trigger and we'll give you some honest feedback...
#1475 of 1650 Re: Volvo XC90 Sept 2009 Lease Incentives & Terms [goucla]
Sep 03, 2009 (7:21 pm)
I said buy a CPO.
With those horrible residuals you can hint that used XC90s are going for cheap and with 6 year/100K mile warranty: http://tinyurl.com/n4tfos
You get a 4 year loan from chase 5.31%: http://tinyurl.com/oxyumh
Your payments are $601.26 with $0 down.
It makes more sense to buy a CPO rather than to lease a new one; after 4 years you still got equity with the former.
I do the math all the time; just got a new Subaru Legacy 2.5i SE for $244 + tax with $0 due at signing (not even tag or tax). 36 months lease/12K miles a year.
#1476 of 1650 Re: Volvo XC90 Sept 2009 Lease Incentives & Terms [zamo]
Sep 03, 2009 (10:56 pm)
Sorry I missed your point about buying CPO. However, a used CPO car isn't the same as a brand new car so its hard to compare, but lets try to break down the differences between leasing new (2009) vs. buying CPO (2007) over 4 years:
First, you'll spend more on maintenance on a CPO (assume $500-$1000/year?) x 4 years = $2000-$4000. I spent $1500 on tires alone for the first 2 years of our current 2007 XC90 lease, and maintenance is sure to be higher in years 2-6 than 0-2.
Second, your payment ignores sales tax at $601. Including sales tax (9.25% here in California) and using Chase's 5.61% interest rate for California the payment would be $661. This is roughly $98 more per month than the $563/mo lease available on a brand new car (7 passenger AWD), x 48 mos = $4700
Third, to "equalize" the options lacking from the car you've identified, the 7-passenger rear seats were a $2500 option but lets say you can somehow find and install the rear seats for $1250, and install bluetooth for $400.
So, at the end of 4 years in 2013 you've paid off your 2007 CPO car and own it outright, but the difference in cost of ownership ranges from $8,350-$10,350. Will the "equity" in your 2007 model be worth more than $8,350-$10,350 in 2013 (as a 6-7 year old car)? The residual value for the above 2009 lease (AWD 7) in 2013 is $12,397, so $8,350-$10,350 for a 2007 model with higher miles doesnt seem that far off, plus as a CPO owner you take maintenance and RV risk.
If the lease RV is below-market at lease-end the lessee can buy the car and capture any upside. Conversely, if the the RV is above-market at lease-end the lessee doesn't suffer any losses, whereas an owner will suffer the loss. The future market value risk is borne by the bank and the CPO purchaser.
Do you look at this any differently? If so, I'd be curious to understand your analysis and how you conclude that buying CPO is better.
The Subaru deal sounds pretty good.
#1477 of 1650 Re: Volvo XC90 Sept 2009 Lease Incentives & Terms [goucla]
Sep 04, 2009 (8:35 am)
For apple to apple comparisons, I do not include sales tax. I also metioned $0 down; not sure if the lease deal has the same term.
The cost of ownership really depends on what type of maintenance I choose. The local mainekee can perform the basic tire rotation and oil changes inexpensively.
Based on these examples were are at a point where a CPO buy and a new lease might cost the same after 48 months. The leased car goes away whereas the CPO is being kept. 2 more years with no car payments makes it a win-win situation.
Before, when the XC90 was a $429/month deal for 24 months, it was a NO-brainer. I do have a 2008 XC90 with all options but Navi. 24 month lease of course.
#1478 of 1650 Lease Buyout
Sep 04, 2009 (9:19 am)
My 2009 XC-90 two year lease is running out in several months. The residual on it is about $31K. I've heard stories about Volvo Financial knocking as much as $10K off the residual for a buyout.
Is this possible, a reality, anyone with any knowledge?
Would seem to make some sense given the deals on a new XC-90, and the very depressed value of used ones. If this is not fact, we're in the market again......
#1479 of 1650 Re: Lease Buyout [fantom]
Sep 04, 2009 (11:16 am)
VFNA isn't knocking $10k off XC90's. Maybe last year,but not this year.
XC90 prices are going up at the auctions.
$31k is about right for an 09 if its a 6 cyl.
#1480 of 1650 Re: Lease Buyout [volvomax]
Sep 04, 2009 (12:02 pm)
It's an '08 AWD, with about 18,000 miles.
Is VFNA knocking anything off?
Add a couple of grand to the residual, and we can purchase a new XC-60.
#1481 of 1650 Re: Lease Buyout [fantom]
Sep 04, 2009 (1:25 pm)
How'd you get an 09 two years ago?