Hi all - newbie here. Really wanted a Volvo and this was the deal I got.
Year, Make, Model, and Trim: 2017 Volvo XC90 T8 R-Design
MSRP: [$75,315]
Selling Price: [$69,020]
Rebates: [$3000 Conquest, $4585 Fed Rebate]
Trade-in: [$0]
Months: [36]
Annual Mileage: [10,000]
MF: [.00139]
Residual: [49%]
Security Deposit: [$0]
Total Due At Signing: [$2,187]
Monthly Payment (incl. tax): [$917]
Zip Code: [94526]
Sales Tax Rate: [8.25%]
Yes, you must have REALLY wanted this Volvo because this is nowhere close to being a good deal. Enjoy it.
917 $s for volvo!!!
@Jon - Yeah, I know… T8’s lease horribly, but my requirement was a hybrid SUV, so it was the one that ticked the boxes. Certainly will enjoy it…I’m paying enough. 
The residual is the biggest killer here, and you can’t control that. I haven’t poked around at the data on selling price for that model/trim, but assuming you did ok there I would say you should:
A) understand that your priority was a particular model (sounds like that was more important to you than price)
B) appreciate that the lease program for that model isn’t good
C) try not to let the fact that it’s not so great of a deal dash your excitement (our vocal community here won’t be shy about reminding you that there are far better deals on SUVs around)
D) enjoy your new vehicle - I’ll tell you I love the new XC90s!
One last thought – next time do some analysis before leasing to assess whether buying would be more economical – in this case I expect it would have been!
Cheers.
@jables04 Thanks for the feedback. You’re spot on in your points (A, B, C and D). I’ve got thick skin and this is the internet, so the vocal community doesn’t bother me. 
You bring up a interesting last thought… how do you go about comparing a lease to buying for a hybrid? I figure with the advances in technology, hybrid cars will be like cell phones… get a new one every few years.
For this particular car, my concern was should I decide to sell/trade-in in 3 or 4 years, the value of the T8 would be even lower than the residual. What’s your thought process on buying vs. leasing luxury hybrids?
I agree that it’s probably better to lease than buy now for hybrid/EV vehicles since th tech is changing so fast.
One advantage of leasing is that you don’t pay tax on the entire sales price. However, you do pay the acq fee and possibly the disposition fee.
One advantage of buying is if the leasing bank doesn’t pass on the entire federal EV rebate to the leasee. Tesla doesn’t pass on any of the $7500 rebate to the leasee. In your case though, Volvo does pass the entire rebate on. You also don’t need to care about mileage as much and/or dents/dings that you might get during ownership.
It’s just a matter of looking at projected depreciation vs the residual in the lease terms. They’re not always lined up. With Volvo’s big push into hybrids and electrics, I wouldn’t expect values to plummet much more than gas-only counterparts (this is more gut feel than something based on research). If you believe the residual is lower than you expect the car’s value to be, it may make more sense to buy. There are some nuances as Jon pointed out that should be taken into account as well.
It’s not the end of the world because there is another way to cover this – as you approach the end of your lease just take stock of how values are faring. If you expect the car will be worth more than 49% of MSRP you can always sell it, pay off the residual, and pocket the extra cash.