Deal evaluation - 2025.5 Volvo XC90 T8 PHEV Ultra

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?).

Look at MSDs instead

You’re about 50% higher than whats in the Marketplace here, and 3x some of the hacks in December.

For X5e money I’d rather lease that

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Stay away at those numbers.

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.

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2025.5, not 2025 :grin:

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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.

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You missed the boat on these (Nov/Dec 2024). Smart thing to do would be wait or choose something else.

Ain’t nobody on here touching one of these at anywhere near that price.

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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.

Smart. But just FYI: 24 months would be a better lease with 65% RV.

MF markup isn’t the culprit alone.

Programs on the XC90 aren’t great at the moment, that’s it…

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The only thing that really changed as far is i know is the grille and the interior got tweaked a bit, not really worth it