# Better to lease or buy volvo XC90? **URL:** \ **Category:** Ask the Hackrs\ **Tags:** ca-socal, volvo\ **Created:** [July 11, 2022, 12:51am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270 "2022-07-11T00:51:03Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![pasty-chef](https://leasehackr.b-cdn.net/letter_avatar/pasty-chef/32/5_5575768a8748004e209b776fc1b2916d.png) [@pasty-chef](https://forum.leasehackr.com/u/pasty-chef)\ **Post date:** [July 11, 2022, 12:51am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/1 "2022-07-11T00:51:03Z")
Am looking to get a new XC90 or XC90 Recharge. We need a car, but we don’t plan on driving much, I would estimate 2-3k miles a year for the next few years since we work from home, and most of our driving will be local. However, if we were to buy, we would plan on owning the car until it stops working. Our credit should be good. Generally speaking given our circumstances, will leasing or buying be more efficient? My worry with leasing if we drive so little is that we will be paying for 10k miles of usage per year but won’t be using anywhere near that. Is that the right way to think about this? For the recharge specifically, buying seems attractive because of the $7500 federal tax credit, but the worry is the reliability seems to fall off after 3 years (regular XC90 sounds like it’s more reliable). ---
**Author:** ![Ursus](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/ursus/32/4944_2.png) [@Ursus](https://forum.leasehackr.com/u/Ursus)\ **Post date:** [July 11, 2022, 1:19am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/2 "2022-07-11T01:19:02Z")
Don’t buy a Volvo, only lease it if you want it. You can lease for 7.5k/year ---
**Author:** ![EC99](https://leasehackr.b-cdn.net/letter_avatar/ec99/32/5_5575768a8748004e209b776fc1b2916d.png) [@EC99](https://forum.leasehackr.com/u/EC99)\ **Post date:** [July 11, 2022, 2:44am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/3 "2022-07-11T02:44:07Z")
> [@pasty-chef](#): > > We need a car, but we don’t plan on driving much, I would estimate 2-3k miles a year for the next few years since we work from home, and most of our driving will be local. However, if we were to buy, we would plan on owning the car until it stops working. Our credit should be good. I lease an XC90 and like it but given current market conditions that seems like a pretty expensive car to drive only 2k-3k miles a year. But if you are set on it, I agree with Ursus that you should lease it rather than buy. ---
**Author:** ![JamesBond](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/jamesbond/32/10810_2.png) [@JamesBond](https://forum.leasehackr.com/u/JamesBond)\ **Post date:** [July 11, 2022, 3:32am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/4 "2022-07-11T03:32:15Z")
I have an XC90 and it is great but I also got it a 2020 and the lease is $525 per month, now the same car is over 800. 😕 For 800 it is quite pricey. Is there a specific reason you want an XC90? ---
**Author:** ![pasty-chef](https://leasehackr.b-cdn.net/letter_avatar/pasty-chef/32/5_5575768a8748004e209b776fc1b2916d.png) [@pasty-chef](https://forum.leasehackr.com/u/pasty-chef)\ **Post date:** [July 11, 2022, 3:55am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/5 "2022-07-11T03:55:04Z")
could you explain why lease is best? I am also not seeing 7500/year anywhere, things I am seeing are closer to $800/month (+tax) + 5k down. Does the fact that we will only drive 2-3k miles a year impact this thought? ---
**Author:** ![pasty-chef](https://leasehackr.b-cdn.net/letter_avatar/pasty-chef/32/5_5575768a8748004e209b776fc1b2916d.png) [@pasty-chef](https://forum.leasehackr.com/u/pasty-chef)\ **Post date:** [July 11, 2022, 3:58am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/6 "2022-07-11T03:58:37Z")
mainly because of its reputation for safety and being good for families, which are my main criteria. Not really much of a car person otherwise and mainly view it as getting us from point A to point B, mainly care about those 2 criteria. Reason for considering recharge over the gas version is just the thought that it might retain value better, or electric infrastructure will be better in the coming years. I don’t think it will pay off financially necessarily in gas savings, especially with how little we expect to drive. If it helps the environment that’s a plus too but it also doesn’t seem clear that it does. I think if leasing won’t fleece me, I’d prefer leasing an xc90 over buying the gas or recharge version. The only thing I don’t really understand is how me driving so little impacts the value of the lease, or if I’d somehow recoup the value from the unused miles at the end of the lease. I would expect at the end of the lease I would not purchase, and would either start a new lease or buy a different car at that point. ---
**Author:** ![Jon](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/jon/32/70934_2.png) [@Jon](https://forum.leasehackr.com/u/Jon)\ **Post date:** [July 11, 2022, 4:20am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/7 "2022-07-11T04:20:38Z")
> [@pasty-chef](#): > > mainly care about those 2 criteria. If you are buying and plan to keep it for a while, reliability should be another high criteria. ---
**Author:** ![jeisensc](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/jeisensc/32/224821_2.png) [@jeisensc](https://forum.leasehackr.com/u/jeisensc)\ **Post date:** [July 11, 2022, 4:40am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/8 "2022-07-11T04:40:38Z")
> [@Jon](#): > > reliably Agreed. I’d at least rule-out the MDX, comparable Lexuses, Palisade and Telluride first if the goal is to drive it into the ground. > [@pasty-chef](#): > > Reason for considering recharge over the gas version is just the thought that it might retain value better Kind of the opposite: as long as the tax credit is in play, in normal times, resale was usually depressed by at least the amount of the tax credit. You pay more than a $7500 premium PHEV vs an ICE on the XC90, and you aren’t driving it enough to recover that in fuel savings. In OPs shoes, I’d go back to the drawing board. The vehicle they think they want is in high demand, with few to no discounts (formerly double digits on ICE version) have to buy it to capture the tax credit (not passed as a lease incentive) and still pay a PHEV price premium, they expect to drive it forever, but drive very little. ---
**Author:** ![Bumboola](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/bumboola/32/217759_2.png) [@Bumboola](https://forum.leasehackr.com/u/Bumboola)\ **Post date:** [July 11, 2022, 5:06am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/9 "2022-07-11T05:06:34Z")
> [@pasty-chef](#): > > reputation for safety and being good for families, which are my main criteria These 2 factors along with > [@Jon](#): > > If you are buying and plan to keep it for a while, reliability should be another high criteria Means you should look at other vehicles, like > [@jeisensc](#): > > the MDX, comparable Lexuses, Palisade and Telluride +other Safe, reliable family cars. If you plan on driving it till it stops working then future resale doesn’t really matter, but having a more reliable vehicle (like the ones @jeisensc said) will lower your total cost of ownership because less parts will break, etc. I’d definitely shop around different models ---
**Author:** ![8.8.8.8](https://leasehackr.b-cdn.net/letter_avatar/8.8.8.8/32/5_5575768a8748004e209b776fc1b2916d.png) [@8.8.8.8](https://forum.leasehackr.com/u/8.8.8.8)\ **Post date:** [July 11, 2022, 11:47am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/10 "2022-07-11T11:47:41Z")
Funny that I see the Telluride pop up more often in these chats, I also have an XC90 which I am either consider buying out of lease or buying something “else” and it got me thinking about Kia. Does anyone on here actually had one and comment about reliability and quality? Thanks ---
**Author:** ![Ursus](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/ursus/32/4944_2.png) [@Ursus](https://forum.leasehackr.com/u/Ursus)\ **Post date:** [July 11, 2022, 1:45pm UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/11 "2022-07-11T13:45:31Z")
Almost all leases are bad now, but buying a Volvo will probably cost you more in the long run than most other SUVs in this class. 7,500 miles a year is the lowest on a Volvo lease, you don’t need to get 10k. ---
**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\ **Post date:** [July 11, 2022, 2:20pm UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/12 "2022-07-11T14:20:37Z")
> [@pasty-chef](#): > > However, if we were to buy, we would plan on owning the car until it stops working. A Volvo is not a good candidate for this. Top of your list should be Toyota Highlander hybrid ---
**Author:** ![Ursus](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/ursus/32/4944_2.png) [@Ursus](https://forum.leasehackr.com/u/Ursus)\ **Post date:** [July 11, 2022, 3:49pm UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/13 "2022-07-11T15:49:16Z")
I would even suggest Subaru Ascent for value. ---
**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\ **Post date:** [July 11, 2022, 4:05pm UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/14 "2022-07-11T16:05:03Z")
Ascents, Highlanders and Tellurides are good values from both POV: purchase price and value retention. In addition, it’s a lot cheaper to get the longest extended OEM warranty on those cars, going out to 8-10 years depending on brand from the original purchase/in-service date. The more they can have things replaced under the ext warranty, the longer the OP can economically continue to drive the car. The OP’s criteria was strangely worded: “drive it until it stops working.” There’s rarely a moment when a car just stops working in any permanent sense. Almost everything can be fixed. It’s more likely to become a question of being fed up with the expense and/or frequency of repairs. Or feeling like you’re being nickle-n-dimed to death. It’s one thing to spend an average of, say, $500 per year on repairs on an 8yr old car; it’s quite another to spend $3,000+ ---
**Author:** ![Ursus](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/ursus/32/4944_2.png) [@Ursus](https://forum.leasehackr.com/u/Ursus)\ **Post date:** [July 11, 2022, 4:56pm UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/15 "2022-07-11T16:56:07Z")
> 97% of Subaru vehicles sold in the last 10 years are still on the road today ---
**Author:** ![pasty-chef](https://leasehackr.b-cdn.net/letter_avatar/pasty-chef/32/5_5575768a8748004e209b776fc1b2916d.png) [@pasty-chef](https://forum.leasehackr.com/u/pasty-chef)\ **Post date:** [July 12, 2022, 3:34am UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/16 "2022-07-12T03:34:23Z")
thanks, based on all of the feedback I am going to look into other options… didn’t realize xc90 reliability was that bad. I had my eye on xc90, but if these other options are better value and offer similar safety (which it seems so from a quick search), then it probably makes more sense given how little I typically drive. Am I correct though that if I get a lease for say 7.5k miles a year, and I only drive 3k, that I’ll basically eat the difference / won’t recoup it at the end of the lease? So leasing would generally not be a great idea for me? Or is this logic broken Of the options listed in the thread (MDX, Lexus, Palisade, Telluride, Toyota Highlander, Subaru Ascent) are any coming off of MSRP these days, or MSRP is what I should hope for? ---
**Author:** ![Ursus](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/ursus/32/4944_2.png) [@Ursus](https://forum.leasehackr.com/u/Ursus)\ **Post date:** [July 12, 2022, 1:21pm UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/17 "2022-07-12T13:21:13Z")
> [@pasty-chef](#): > > didn’t realize xc90 reliability was that bad. The reliability is not bad, but maintenance and repairs are expensive. And Volvo doesn’t hold its value as well as many others. ---
**Author:** ![Airborne03](https://leasehackr.b-cdn.net/letter_avatar/airborne03/32/5_5575768a8748004e209b776fc1b2916d.png) [@Airborne03](https://forum.leasehackr.com/u/Airborne03)\ **Post date:** [July 12, 2022, 1:30pm UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/18 "2022-07-12T13:30:08Z")
Some broker’s on here are offering decent discounts on Lexus and you can research obtaining a Subaru through their VIP program, which would be well under MSRP. ---
**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\ **Post date:** [July 12, 2022, 1:35pm UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/19 "2022-07-12T13:35:18Z")
> [@pasty-chef](#): > > Am I correct though that if I get a lease for say 7.5k miles a year, and I only drive 3k, that I’ll basically eat the difference / won’t recoup it at the end of the lease? Safe to assume you won’t recoup anything at the end. ---
**Author:** ![pasty-chef](https://leasehackr.b-cdn.net/letter_avatar/pasty-chef/32/5_5575768a8748004e209b776fc1b2916d.png) [@pasty-chef](https://forum.leasehackr.com/u/pasty-chef)\ **Post date:** [July 16, 2022, 7:23pm UTC](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270/20 "2022-07-16T19:23:05Z")
Thanks, based on the discussions here I’ve been looking into Highlanders and Palisades / Telluride, but Telluride has big markups around me so mainly considering Palisade and Highlander. I didn’t realize depreciation varied so much across brands, looks like Volvo is pretty bad here. I just figured a $X car is an $X car, and given I don’t plan to drive a ton I think I should pick something that will hold its value reasonably well. Between Highlander and Palisade, are they comparable in holding their value? I am not sure what a good resource to quantify this is, but I found > **[Hyundai Palisade Depreciation](https://caredge.com/hyundai/palisade/depreciation?y=0&p=50000&o=5&m=7500)** > > See the Hyundai Palisade depreciation curve along with new & used pricing analysis to find which model years have the most value. > **[Toyota Highlander Depreciation](https://caredge.com/toyota/highlander/depreciation?y=0&p=50000&o=5&m=7500)** > > The Toyota Highlander does a fantastic job holding its value in the short-term, and places in our top 20 models at the 3, 5, and 7-year marks. For those looking in this vehicle class, the Highlander provides excellent value, and you can feel... which would suggest Highlander would hold its value a bit better (80% vs 70% after 5 yrs), but this doesn’t seem too bad. Is this accurate? [Next page](https://forum.leasehackr.com/t/better-to-lease-or-buy-volvo-xc90/424270.md?page=2)