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Discuss Leasing '07 XC90 in the alt.autos.volvo forum at Car Dealer Forums; Someone posted a question about the leasing deal on an '07 XC90 with the new ...
  1. #1
    mdrawson
    Guest

    Default Leasing '07 XC90

    Someone posted a question about the leasing deal on an '07 XC90 with the new
    3.2 ltr 6-cylinder engine. Nice car --- we've used it as a loaner from our
    dealer, but we still like our V8 better (it gets better gas mileage).

    Anyhow, the lease deal price on the car mentioned by the poster was $45K+,
    and I would hasten to point out that this sounds like the dealer's lease
    deal. You need to work your own lease deal, and the first part of that is
    negotiating the purchase price just as though you were buying the car. $45K
    for that model is right at the MSRP, which you never pay for a car.. You
    then need to evaluate the specs of Volvo's and competitive (banks') leasing
    deals which include the residual value (what the car is worth at the end of
    the lease period, and consequently what you're paying on the lease, ie., the
    agreed-upon price (minus a down payment) less the residual, which amounts to
    the depreciation ), and the interest rate which is expressed as a "cost
    factor" where the lower, the better. You also need to be sure that it is a
    closed ended lease (no balloon balance or payoff at the end), and that you
    have an option to buy the car at the end of the lease period for the
    residual value. You also need to compare the cost per mile for any mileage
    in access to the lease-specified mileage for the term of the lease.

    We've leased from Volvo when they had a "cost factor" sale, and also from a
    bank when they had a better deal. We've always leased for 36 months for 15K
    mi/year (total 45K), and never paid a security deposit or processing fee
    (everything is negotiable....).

    You can't know if you have a good deal for you unless and until you've done
    this homework and negotiations. In other words, the dealer's deal is
    favorable to him, not to you, and you can always do better. After all, it's
    your money. Good luck.

    DRawson
    mdrawson@cox.net






    › See More: Leasing '07 XC90

  2. #2
    Roadie
    Guest

    Default Re: Leasing '07 XC90

    Have you also done the math as they say to compare the long term cost
    of leasing a new car every 36 months vs buying and holding for the long
    term? I have yet to find a lease that stands up under that scrutiny,
    but maybe you have found the rare good deal.


    mdrawson wrote:
    > Someone posted a question about the leasing deal on an '07 XC90 with the new
    > 3.2 ltr 6-cylinder engine. Nice car --- we've used it as a loaner from our
    > dealer, but we still like our V8 better (it gets better gas mileage).
    >
    > Anyhow, the lease deal price on the car mentioned by the poster was $45K+,
    > and I would hasten to point out that this sounds like the dealer's lease
    > deal. You need to work your own lease deal, and the first part of that is
    > negotiating the purchase price just as though you were buying the car. $45K
    > for that model is right at the MSRP, which you never pay for a car.. You
    > then need to evaluate the specs of Volvo's and competitive (banks') leasing
    > deals which include the residual value (what the car is worth at the end of
    > the lease period, and consequently what you're paying on the lease, ie., the
    > agreed-upon price (minus a down payment) less the residual, which amounts to
    > the depreciation ), and the interest rate which is expressed as a "cost
    > factor" where the lower, the better. You also need to be sure that it is a
    > closed ended lease (no balloon balance or payoff at the end), and that you
    > have an option to buy the car at the end of the lease period for the
    > residual value. You also need to compare the cost per mile for any mileage
    > in access to the lease-specified mileage for the term of the lease.
    >
    > We've leased from Volvo when they had a "cost factor" sale, and also from a
    > bank when they had a better deal. We've always leased for 36 months for 15K
    > mi/year (total 45K), and never paid a security deposit or processing fee
    > (everything is negotiable....).
    >
    > You can't know if you have a good deal for you unless and until you've done
    > this homework and negotiations. In other words, the dealer's deal is
    > favorable to him, not to you, and you can always do better. After all, it's
    > your money. Good luck.
    >
    > DRawson
    > mdrawson@cox.net



  3. #3
    mdrawson
    Guest

    Default Re: Leasing '07 XC90

    My main reason for buying (which is what I've done on the last 2 Volvos) vs
    leasing has to do with the miles I now put on a car --- way too much to
    make leasing viable. An example of the purchase math: I bought an '05 XC90
    V8 (MSRP $51K) for $45K, put down $10K and borrowed $35K for 5 yrs at 4.99%.
    Monthly payment is $660, and since the car is mine I can pay off and/or cash
    it out whenever. This mo payment is the same as the poster's estimated mo
    payment with the lease he described.

    "Roadie" <hjsjms@cs.com> wrote in message
    news:1163391725.317310.160430@k70g2000cwa.googlegr oups.com...
    > Have you also done the math as they say to compare the long term cost
    > of leasing a new car every 36 months vs buying and holding for the long
    > term? I have yet to find a lease that stands up under that scrutiny,
    > but maybe you have found the rare good deal.
    >
    >
    > mdrawson wrote:
    >> Someone posted a question about the leasing deal on an '07 XC90 with the
    >> new
    >> 3.2 ltr 6-cylinder engine. Nice car --- we've used it as a loaner from
    >> our
    >> dealer, but we still like our V8 better (it gets better gas mileage).
    >>
    >> Anyhow, the lease deal price on the car mentioned by the poster was
    >> $45K+,
    >> and I would hasten to point out that this sounds like the dealer's lease
    >> deal. You need to work your own lease deal, and the first part of that
    >> is
    >> negotiating the purchase price just as though you were buying the car.
    >> $45K
    >> for that model is right at the MSRP, which you never pay for a car.. You
    >> then need to evaluate the specs of Volvo's and competitive (banks')
    >> leasing
    >> deals which include the residual value (what the car is worth at the end
    >> of
    >> the lease period, and consequently what you're paying on the lease, ie.,
    >> the
    >> agreed-upon price (minus a down payment) less the residual, which amounts
    >> to
    >> the depreciation ), and the interest rate which is expressed as a "cost
    >> factor" where the lower, the better. You also need to be sure that it is
    >> a
    >> closed ended lease (no balloon balance or payoff at the end), and that
    >> you
    >> have an option to buy the car at the end of the lease period for the
    >> residual value. You also need to compare the cost per mile for any
    >> mileage
    >> in access to the lease-specified mileage for the term of the lease.
    >>
    >> We've leased from Volvo when they had a "cost factor" sale, and also from
    >> a
    >> bank when they had a better deal. We've always leased for 36 months for
    >> 15K
    >> mi/year (total 45K), and never paid a security deposit or processing fee
    >> (everything is negotiable....).
    >>
    >> You can't know if you have a good deal for you unless and until you've
    >> done
    >> this homework and negotiations. In other words, the dealer's deal is
    >> favorable to him, not to you, and you can always do better. After all,
    >> it's
    >> your money. Good luck.
    >>
    >> DRawson
    >> mdrawson@cox.net

    >
    >





  4. #4
    Roadie
    Guest

    Default Re: Leasing '07 XC90

    Well, the payments are only one small part of the math to determine
    whether a lease makes financial sense. Total cost of leasing over and
    over vs purchasing outright and maintaining the car are what really
    count. Whenever i've run the numbers outright purchase is the
    financial winner.

    Leasing does allow the buyer to get into a car with minimal upfront
    payment, and that feature is attractive to those with no down payments
    I suppose.


    mdrawson wrote:
    > My main reason for buying (which is what I've done on the last 2 Volvos) vs
    > leasing has to do with the miles I now put on a car --- way too much to
    > make leasing viable. An example of the purchase math: I bought an '05 XC90
    > V8 (MSRP $51K) for $45K, put down $10K and borrowed $35K for 5 yrs at 4.99%.
    > Monthly payment is $660, and since the car is mine I can pay off and/or cash
    > it out whenever. This mo payment is the same as the poster's estimated mo
    > payment with the lease he described.
    >
    > "Roadie" <hjsjms@cs.com> wrote in message
    > news:1163391725.317310.160430@k70g2000cwa.googlegr oups.com...
    > > Have you also done the math as they say to compare the long term cost
    > > of leasing a new car every 36 months vs buying and holding for the long
    > > term? I have yet to find a lease that stands up under that scrutiny,
    > > but maybe you have found the rare good deal.
    > >
    > >
    > > mdrawson wrote:
    > >> Someone posted a question about the leasing deal on an '07 XC90 with the
    > >> new
    > >> 3.2 ltr 6-cylinder engine. Nice car --- we've used it as a loaner from
    > >> our
    > >> dealer, but we still like our V8 better (it gets better gas mileage).
    > >>
    > >> Anyhow, the lease deal price on the car mentioned by the poster was
    > >> $45K+,
    > >> and I would hasten to point out that this sounds like the dealer's lease
    > >> deal. You need to work your own lease deal, and the first part of that
    > >> is
    > >> negotiating the purchase price just as though you were buying the car.
    > >> $45K
    > >> for that model is right at the MSRP, which you never pay for a car.. You
    > >> then need to evaluate the specs of Volvo's and competitive (banks')
    > >> leasing
    > >> deals which include the residual value (what the car is worth at the end
    > >> of
    > >> the lease period, and consequently what you're paying on the lease, ie.,
    > >> the
    > >> agreed-upon price (minus a down payment) less the residual, which amounts
    > >> to
    > >> the depreciation ), and the interest rate which is expressed as a "cost
    > >> factor" where the lower, the better. You also need to be sure that it is
    > >> a
    > >> closed ended lease (no balloon balance or payoff at the end), and that
    > >> you
    > >> have an option to buy the car at the end of the lease period for the
    > >> residual value. You also need to compare the cost per mile for any
    > >> mileage
    > >> in access to the lease-specified mileage for the term of the lease.
    > >>
    > >> We've leased from Volvo when they had a "cost factor" sale, and also from
    > >> a
    > >> bank when they had a better deal. We've always leased for 36 months for
    > >> 15K
    > >> mi/year (total 45K), and never paid a security deposit or processing fee
    > >> (everything is negotiable....).
    > >>
    > >> You can't know if you have a good deal for you unless and until you've
    > >> done
    > >> this homework and negotiations. In other words, the dealer's deal is
    > >> favorable to him, not to you, and you can always do better. After all,
    > >> it's
    > >> your money. Good luck.
    > >>
    > >> DRawson
    > >> mdrawson@cox.net

    > >
    > >



  5. #5
    John Horner
    Guest

    Default Re: Leasing '07 XC90

    Roadie wrote:
    > Have you also done the math as they say to compare the long term cost
    > of leasing a new car every 36 months vs buying and holding for the long
    > term? I have yet to find a lease that stands up under that scrutiny,
    > but maybe you have found the rare good deal.
    >



    If a person knows that they are going to want a new vehicle every three
    years or so then leasing can be a smart way to go since you put the
    residual value uncertainty factor on the other guy's back.

    Financially it may make sense to keep a car longer than that or it may
    not. It really all depends what a person wants and what they are able
    to afford. Some people are simply bored with a vehicle after three
    years and want something new and different. More power to them. These
    folks put good used 3 year old cars onto the market for those who want
    to minimize depreciation expenses to buy.

    Different desires, different choices.

    John

  6. #6
    Michael Pardee
    Guest

    Default Re: Leasing '07 XC90

    "John Horner" <jthorner@yahoo.com> wrote in message
    news:76e6h.4549$dh7.471@trnddc01...
    > Roadie wrote:
    >> Have you also done the math as they say to compare the long term cost
    >> of leasing a new car every 36 months vs buying and holding for the long
    >> term? I have yet to find a lease that stands up under that scrutiny,
    >> but maybe you have found the rare good deal.
    >>

    >
    >
    > If a person knows that they are going to want a new vehicle every three
    > years or so then leasing can be a smart way to go since you put the
    > residual value uncertainty factor on the other guy's back.
    >
    > Financially it may make sense to keep a car longer than that or it may
    > not. It really all depends what a person wants and what they are able to
    > afford. Some people are simply bored with a vehicle after three years
    > and want something new and different. More power to them. These folks
    > put good used 3 year old cars onto the market for those who want to
    > minimize depreciation expenses to buy.
    >
    > Different desires, different choices.
    >
    > John


    I agree, although the terms of leases can be extremely rigid. Even if the
    lessee loses his driver's license because of failing eyesight, or even if he
    dies, typically the lease is still in force. It can be an unpleasant
    surprise to heirs to have to make monthly payments on a car they didn't want
    or need. At least a car that was bought on payments can be sold.

    Mike



  7. #7
    Roadie
    Guest

    Default Re: Leasing '07 XC90


    John Horner wrote:
    > Roadie wrote:
    > > Have you also done the math as they say to compare the long term cost
    > > of leasing a new car every 36 months vs buying and holding for the long
    > > term? I have yet to find a lease that stands up under that scrutiny,
    > > but maybe you have found the rare good deal.
    > >

    >
    >
    > If a person knows that they are going to want a new vehicle every three
    > years or so then leasing can be a smart way to go since you put the
    > residual value uncertainty factor on the other guy's back.
    >
    > Financially it may make sense to keep a car longer than that or it may
    > not. It really all depends what a person wants and what they are able
    > to afford. Some people are simply bored with a vehicle after three
    > years and want something new and different. More power to them. These
    > folks put good used 3 year old cars onto the market for those who want
    > to minimize depreciation expenses to buy.


    As long as the person leasing a car every three years realizes that
    they are re-paying the first three years depreciation plus a return
    many times over then yes that individual can then make an informed
    decision. But unfortunately the advertising for leases tends to talk
    in generalities about the financial benefits of leases and does not
    mention what is really being repaid.

    Indeed what I hear over and over is that the individual is preserving
    his capital by leasing. In reality he doesn't have the money to make a
    downpayment and repay a loan so he leases. In effect he is getting
    into a car that is beyond his means.

    >
    > Different desires, different choices.
    >
    > John



  8. #8
    Roadie
    Guest

    Default Re: Leasing '07 XC90


    Michael Pardee wrote:
    > "John Horner" <jthorner@yahoo.com> wrote in message
    > news:76e6h.4549$dh7.471@trnddc01...
    > > Roadie wrote:
    > >> Have you also done the math as they say to compare the long term cost
    > >> of leasing a new car every 36 months vs buying and holding for the long
    > >> term? I have yet to find a lease that stands up under that scrutiny,
    > >> but maybe you have found the rare good deal.
    > >>

    > >
    > >
    > > If a person knows that they are going to want a new vehicle every three
    > > years or so then leasing can be a smart way to go since you put the
    > > residual value uncertainty factor on the other guy's back.
    > >
    > > Financially it may make sense to keep a car longer than that or it may
    > > not. It really all depends what a person wants and what they are able to
    > > afford. Some people are simply bored with a vehicle after three years
    > > and want something new and different. More power to them. These folks
    > > put good used 3 year old cars onto the market for those who want to
    > > minimize depreciation expenses to buy.
    > >
    > > Different desires, different choices.
    > >
    > > John

    >
    > I agree, although the terms of leases can be extremely rigid. Even if the
    > lessee loses his driver's license because of failing eyesight, or even if he
    > dies, typically the lease is still in force.


    Well, yes, that is true. But why should it be otherwise. The
    individual could have lookied into a monthly rental if those issues
    were of concern.


    > It can be an unpleasant
    > surprise to heirs to have to make monthly payments on a car they didn't want
    > or need.


    The heirs don't have to and should not make lease payments for a leased
    vehicle in a deceased persons estate. An attorney would give the best
    advice there.


    At least a car that was bought on payments can be sold.
    >
    > Mike



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