I was heavily searching for a 2020 XC90 with the possible lowest monthly payments in NorCal (Bay area) and got really good offers from two dealers. I’ve spent around a week and visited 2-3 times each of them and negotiated very deeply. In the end, I decided to go with a CPO (used) so will not use those offers. If you’re looking for a good deal, dm me, I can fwd you to that dealers.
All rates are valid with the following conditions:
No MSD included, so rates can go lower. (around $30-40 with 10MSD)
Wear&Tear package is included. It has $7500 coverage (tires, windshield, scratches etc.) I wanted a risk-free lease return. Some dealers sell it for $995, others for $1395. So I’ve negotiated on an all-inclusive rate.
All cars are T5 AWD Momentum, with gray exterior and blond interior, with 20" tires and integrated booster.
DAS: $2000 (inclusive of the first-month payment, all fees, and taxes)
9.25% Tax is included. So you can calculate yours accordingly.
Incentives: I only have Costco. If you have other benefits you can go for a lower price.
Those are 2020 new cars, not loaners or not a demo.
Dealer 1:
MSRP: $55xxx
36/10K: $546 pm (as I said tax and W&T included)
36/12K: $576 pm (as I said tax and W&T included)
Dealer 2: -- That dealer has two cars with the same config.
MSRP: $56xxx – it has rear heated seats and heated steering wheel
36/10K: $570 pm (as I said tax and W&T included)
36/12K: $590 pm (as I said tax and W&T included)
If you go without W&T, you can lower it around $30-40 per month, and more with MSD and other incentives.
I found a really good deal, on a T6 Inscription + B&W + extended warranty (10years/Unlimited-mileage). I did the math for selling after a couple of years (selling after 3y vs 5y) and the numbers were better. I’m planning to keep CPO till we have the facelifted XC90, then I’ll rethink about leasing that, hopefully with loyalty
Buying Price:
The price I paid is just $1000 above KBB Selling (Trade-in) price, so it is way lower than KBB certified buying numbers.
Short-term major costs:
The previous owner had replaced tires (Michelin) and front/rear brake pads around 3000 miles ago, so I don’t expect a major cost in the next 2 years at least.
Unexpected major costs:
I bought an extended warranty to minimize that risk. With CPO you can go up to 10y/unlimited, assuming that will also make re-sale easier.
Re-sale price is a big question mark for sure and affects the Total Cost of Ownership (TCO) as @Ursus said. I thought even if I sell it after 3years, it wouldn’t be too much different from the lease from a TCO perspective, on top of that I’ll ride an Inscription for those 3 years.
How lease would be attractive for me:
T6 Inscription lease numbers were around $725+ pm for Cali (no demo cars as of now). If it was close to $600s like the East coast, I would go with a T6 Inscription lease. Or if I could get a loaner/demo T5 Momentum for less than $450, I would take that as well.
No one in their right mind will pay $585/mo on a $56K XC90 T5 (or $725/mo on T6 Inscr), so your calculations are flawed
You need to work for a good lease or hire a broker.
p.s. search here for discussions on brake pads and rotors on XC90
p.p.s. KBB means very little on Volvos
I did, and unfortunately their rates were not better. I got better numbers by spending a lot of time going back and forth. Maybe it’s due to the season, I couldn’t find any sweet deal in CA. I only saw bendetto has better numbers but he doesn’t work with CA clients.
Ps: $585mo can be considered as ~430 if I deduct W&T and tax and convert back to 10K mileage and add MSD
Just my 2 cents - NorCal is tough with Volvos (and probably with other brands as well) - I approached ~10 dealers here regarding 2021 models and they have absurd offers and vert little willingness to negotiate. 3 years ago I ended up taking a car from SoCal, and might do the same thing today due to the bad NorCal deals.
