This is for the new 2025.5 Volvo XC90 T8 (7 seater) which is in seemingly limited supply as it’s very new.
MSRP: $82405
Selling price: $70463 ($8500 in incentives and ~$4K which is supposedly a discount)
Residual: 57%
Cash down: $5000
Monthly payment: $1185.73
Term: 36 months / 10k miles
WDYT? Implied money factor seems high to me, but this is my first time leasing so not sure what to expect. The sense I get is I’m basically trading the upfront incentives for a high money factor. I could also buy it for cash (or maybe buy out the lease quickly?).
I think the primary difference is that this is the new 2025.5 model. It was refreshed mid-year and the lease deals on this one seem to be much less attractive. Supposedly this is due to a combination of limited inventory, demand, and speculation that the $7500 EV rebates get rolled back by the new administration.
I can get a much better rate on the old 2025 model, but I don’t want it.
Sounds like you’re set on paying for what you want. But paying over 57% of the inflated MSRP of an XC 90 in 3 years doesn’t seem like a great move. There’s plenty of information on this site to teach you how to either prepare your own target offer or just work with a broker and save thousands.
Although you can buy an 80k car in cash (congrats) it doesn’t mean you should waste your money in any scenario, including buying it with cash.
Thanks all, this is helpful! Sounds like this is a bad deal (inflated MF) due to current supply and demand situation, so better to wait and look for a better deal later in the cycle.
