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Re: Current Incentives S80 [autoboy19]

by car_fool on Sat Nov 21 17:38:38 PST 2009

After learning the promotion, I too felt that Volvo is offering a very good deal. But after my visit to my local dealership and getting the number, I don't think that deal is that good given the low residual value for a Volvo, especially if you want to buy it. I had posted a link on the topic of residual value in this forum. I would like to hear your thoughts on this.

Re: Costco? [zamo]

by mcmjr77 on Sat Nov 21 16:58:48 PST 2009

I went to Danbury, CT dealership today. Here is what I got: MSRP: 41,350 Invoice: 39,070 -$500 for Volvo allowance on XC-90 7 passengers. I saw the chart and each car is different. -1,500 for Volvo Loyalty -500 for Costco -500 for "Flex" which was some other deal Sale Price - $36,070 Then you got another $500 Costco gift card after a survey.

The amazing residual value (i.e. low) of Volvo

by car_fool on Sat Nov 21 14:54:06 PST 2009

I was attracted by some of the promotions posted by Edmunds for the Volvo S80: $3500 marketing support and $5000 alternative lease assistance cash. On top of that, if one works for an employer for which there is an A,Z or X plan, you also get almost the invoice price. The total saving is around $10,000 below MSRP. :) Sounds like a no-brainer to me! But be careful: something is too good to be true. Let’s take a hypothetical case posted in #223: Standard White/Black Leather MSRP $40,425 Assumed Cap Cost: 30,000, Money Factor: 0.00224. In the beginning, it sounds pretty good, but once I got the monthly payment estimate, it is close to $500 (including everything, tax rate of 9% for leasing) with about $1500 down. You can almost rent a BMW 5 series for this much. So what is wrong? To get the $5000 lease assistance cash, you have to go through a third party bank like US bank. The residual value for a 36 months (12K) lease is 40%, compared to 60% for BMW or Toyota (See post #228) . For such a lease, you are also paying the high acquisition cost ($900 compared to $500 for Toyota or $725 for BMW), and you have to pay 9% tax instead of 6% (because of leasing in PA) for both the depreciated values ($30k - $40k*40% = $14k) and interests. You can also do the math for a 5 years lease around 24% residual value. The question then is: can I pay cash and still get the $5000 rebate and I can save on the acquisition fee, tax rate (6% vs. 9%) and tax on the interests. Unfortunately, No! Someone may wonder that with such low residual value, you can just buy the car at the end of the lease, and you still pocket the $5000 rebate. Sounds right? But if you put the all the numbers together, the cost of buying it now (without the $5000 rebate) is very similar to that buying after leasing. It’s because you are paying more for the lease due to the following factors: inflated depreciation value, added cost due to fees, and higher tax rate (this is only true for states with higher tax rate for leasing). What a learning experience! Thanks Volvo!

Costco on XC90

by crestonave on Fri Nov 20 16:03:30 PST 2009

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?

Re: Grateful for thoughts on XC-90 purchase [familyguy8]

by zamo on Thu Nov 19 13:03:07 PST 2009

If I were you and wanted to purchase, I would rather lease through US Bank and then finance the payoff with another bank. Volvo is giving out $4,250 extra cash incentive if you lease through any other 3rd party. Savings add up.

MY2010 C70

by newvolvoowner on Wed Nov 18 06:06:54 PST 2009

Just returned from Sweden where we picked up our 2010 C70. Volvo Overseas Delivery Program is better than purchasing from any dealer. Free round trip flights to Gothenburg Sweden, one night in hotel, 2 weeks free insurance to drive car in Europe, free shipment to your dealer in United States. Looking forward to doing it again.

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