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Volvo XC90: Lease Questions

1549 messages,  Last post on Dec 05, 2009 at 9:37 PM

You are in the Volvo XC90 / XC60 Forum. Your Hosts are steve_ & tidester

What is this discussion about? Volvo XC90, Car Leasing, SUV


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#1434 of 1549
Re: 3 year residual, Money Factor & Bank [volvomax] by naut_online
Jul 20, 2009 (9:06 am)
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Replying to: volvomax (Jul 17, 2009 4:03 pm)

Why is the residual so bad?????? That vehical will easly be worth over $20K in three years.
#1435 of 1549
Re: 3 year residual, Money Factor & Bank [naut_online] by fluid15
Jul 20, 2009 (9:14 am)
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Replying to: naut_online (Jul 17, 2009 11:11 am)

My 2007 had a 2 yr residual of 72%. Wow, how times change ...
#1436 of 1549
Re: 3 year residual, Money Factor & Bank [fluid15] by naut_online
Jul 20, 2009 (9:33 am)
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Replying to: fluid15 (Jul 20, 2009 9:14 am)

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%
#1437 of 1549
Re: 3 year residual, Money Factor & Bank [naut_online] by volvomax
Jul 20, 2009 (9:37 am)
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Replying to: naut_online (Jul 20, 2009 9:06 am)

Because the banks all lost money on SUV's over the last year.
#1438 of 1549
Re: 3 year residual, Money Factor & Bank [volvomax] by naut_online
Jul 20, 2009 (10:31 am)
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Replying to: volvomax (Jul 20, 2009 9:37 am)

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 swapalease.com 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.
#1439 of 1549
Re: 3 year residual, Money Factor & Bank [naut_online] by volvomax
Jul 20, 2009 (11:18 am)
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Replying to: naut_online (Jul 20, 2009 10:31 am)

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.
#1440 of 1549
Re: 3 year residual, Money Factor & Bank [volvomax] by naut_online
Jul 20, 2009 (11:51 am)
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Replying to: volvomax (Jul 20, 2009 11:18 am)

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?
#1441 of 1549
Re: 3 year residual, Money Factor & Bank [naut_online] by volvomax
Jul 20, 2009 (12:29 pm)
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Replying to: naut_online (Jul 20, 2009 11:51 am)

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.
#1442 of 1549
Re: 3 year residual, Money Factor & Bank [volvomax] by crestonave
Jul 20, 2009 (12:33 pm)
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Replying to: volvomax (Jul 20, 2009 12:29 pm)

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.
#1443 of 1549
Residuals... by kyfdx HOST
Jul 20, 2009 (12:40 pm)
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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...

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