2018 XC90 Loaner Offer

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Just got a quote on an XC90 after negotiating the price and MSDs. They still haven’t given me the money factor, which I’m pretty sure is marked up.

2018 XC90 T5 Momentum
4519 miles

MSRP: $55,635
Dealer Discount: $9,135 (16.42% - dealer rebates included in this)
Sale Price: $46,500

36/10k Residual: 30,808.15
10 MSDs ($6000)
Monthly (w/ 7% tax): $589.84
Drive off Doc Fee ($175) plus reg, 1st month, and MSD

My numbers show that the payment should be $540 with the buy rate MF (0.00113 minus MSD) and acquisition fee, so I countered with that. If I can get to that number I feel like I got a good deal for a Volvo in the midwest (hacking is hard here!).

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I’d rate your counteroffer a fair deal, but there’s things to consider. Did you look at the other XC90 thread with the OP in MD?

On Saturday the incentives and lease terms will be updated, and I suspect they’ll be better.

What’s a zip code near you? Do you qualify for A-Plan (could be better next month)?

Did you count for the mileage penalty?

My zip is 46202, but the car was in the Chicago area. Unfortunately no loyalty and no A-plan, so I’m looking at loaners.

I used the residual they gave me, which was a little higher than what I calculated myself with the mileage penalty, but it was in the general range.

Ultimately, the lowest they would come on MF was 0.00083 after MSDs ($573), so I declined. The hunt continues…

I took the residual they gave you, added back the miles on it times 20 cents each, and added it together. The total was exactly 57% of the MSRP.

Look at the other thread and consider Sept 1st to be a fresh opportunity and maybe on a different model.

You are correct. I think my spreadsheet must’ve had the BMW mileage penalty formula in it.

I got a brand new XC90 T5 Mom in April. Some numbers for you to compare/consider:

52k MSRP, 10MSD + first month DAS, $520/m (tax included), 39/10k lease. I was not qualified for any incentives, so just negotiated the selling price to 12% off, plus lease cash. I would suggest you aim for 18%-20% off before any incentives or leash cash. I was in NJ in April btw.

You think they will make better incentives for 2018 comparing to August? I see a trent on Truecar that the selling prices are slightly increased comparing to the last week.

Generally the trend is for the better. You never know until it’s too late, but it’s an educated guess.

@Indy499 - it looks like the incentives on the XC90 T5 are $2,000 all around you. The T6 Momentum generally has $2,750, but I’m seeing $4,750 in TN… Come Sept 1st the deck reshuffles, so if you’re not ready to pull the trigger by then, you should wait.

Thanks for the info. Those incentives are based on the dealer location then I take it, not on my location? Tennessee is a bit of a hike, but I suppose I could grab my cowboy hat and hit the road for the right price.

It’s based on the dealer location, not yours. Giddy up!

There could be other dealers a greater distance away than that first Tennessee dealer that showed up. If you’re not leasing before Saturday, then you should re-check then. Maybe things get friendly near the brickyard…

There is also $4,750 on T6 MOM in VA/MD, Mid-Atlantic.

I wore them down. I got them to bring the MF down to the buy rate, though the acquisition fee is still marked up $300 ($995). I think that’s pretty common for Volvo. The monthly I agreed to is $556, zero down.


When you grind the dealer down to the buy rate, letting them have the $300 markup is a decent thing to do. For a dealer to net $300 on rate, I think the payment before tax has to be marked up about $428. It’s pure profit to the dealer’s finance department, vs a split with the lender.

Congrats on the new car!

Sorry for hijacking your thread…

I’m also in the market for a 2018 XC90 loaner. I’m in SoCal so I do have access to a lot of Volvo dealerships. However, even with having so many dealerships near me, I have not been able to get a reasonable quote. I do not know whether that’s because of my negotiation skills or the incentives available this month are not friendly.

Regardless, I have used your numbers as a benchmark to negotiate with dealers around me but to no avail. I had one dealership associate ask me whether I took up math in school…I really don’t where the disconnect is coming from, but it is rather annoying.

Anyways, I’m not asking for anyone to do my homework, but it would be greatly appreciated if I can be pushed in the right direction. Perhaps other Leasehackr members have worked with specific associates at SoCal dealerships who are willing to deal…I did go through the other thread which had Volvo of Escodindo and they did not respond to my offer.

Also, if you are a broker who has experience in dealing with Volvo dealerships then please do contact me. I may be interested in paying your broker fee to forgo negotiating directly with dealerships.

Thank you!

Hard to say. The car I bought was advertised at $47,2xx on cars.com and cargurus, so I didn’t have far to negotiate on sale price. Lease terms, as you can see, were more difficult. Look for a dealership with a bunch of XC90’s in stock, particularly 2018’s. This time of the year they’re trying to get rid of the 2018’s to make room for 2019. I was more or less laughed at by some other dealerships when I tried to ask for similar pricing, you just have to find the right motivated dealer.

And using a broker is probably a good plan, especially in Socal. There are a bunch out there, check out the reviews on this forum and reach out to one. From what I’ve seen, the deals they can get are worth their fee.

I do not find any compelling reason for someone to lease a Volvo right now be it XC40, XC90 or XC60
CX-9 Touring is 350-400 range
Stelvio is also 400.
RX350 is 450.
MDX is also easily under 500.

Maybe Volvo will improve their discounts/promos as they get more desperate?

By that logic, why would anyone drive anything but the cheapest Terrain or Traverse? I looked through the entire segment (drove CX-9, QX60, XC90, Q7, and Acadia Denali - never really liked RX350 or MDX designs, and Stelvio wasn’t big enough). The XC90 was, in my opinion, the best 3-row luxury SUV. So yeah, maybe not as hackable, but I think it is worth a higher price than those. Reasonable people will disagree though…


The 1% rule takes care of all segments. For a given price point, the best lease (bang for buck) is the one that meets or beats the 1% rule.
If your budget is 200, a 30k terrain will do.
If your budget is 600, then a 55k XC90 loaner will not do but a 75k Range Rover will be a good deal.

If a car has everything you need and does not meet the 1% rule, then it is a sign to explore other options (buy used, different trim or finance).

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PM audidevan or Dave, broker in CA. His q7 deals might be better than your xc90. I wish he’d on the east coast. My husband just drove the xc90 home, he said the road noise is def louder than x5 and q7.

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