Hello, I have a 1 month old 2025 XC60 Plugin Ultra. Love it!
I got it with a lease to get all the rebates and what not. Decently happy with the price I paid…except a larger than desired MF rate (.00336.) All told, my monthly payments are $675 for a 36 month lease.
I am considering buying it out on a finance loan immediately…especially if I can find a good interest rate deal. I’ve seen plenty of people say to definitely NOT do this, as Volvo’s don’t retain their value. That said, I’m less worried about loosing value, as I hope to keep the car for 10 plus years.
So…
A) Should I simply run the course of the lease (at a higher MF rate) and then buy it out?
B) Buy it out as soon as possible if I can find a good loan rate?
C) Not buy out at all and return after the lease? Ha.
Also, happy to hear any advice on where to find good financing deals if you know of any.
Thanks! Matt
If you asked for a deal check, circle back after you have signed a deal – the community always loves to hear back! Submit your deal to SIGNED! (https://share.leasehackr.com).
Your MF is equivalent to an 8.06 APR as it stands today on your lease. Doing a quick google search, most lease buyout rates for Tier 1 credit applicants for a 60 month loan is 6.99%. I suppose saving 1% in interest is worth it if you’re absolutely sure you’re in love with the vehicle and plan on keeping it for as long as you say you are.
I would check with local credit unions in your area (actually call them) and see what rate they would extend to you to buy out the lease to see if they would give you a new car rate (vs a lease buy out rate) since it’s only one month old.
The great thing about a lease is you have those many months to decide if you really like the car or not. You may think you want it for 10 years, but over the next many months things can pop up about the car, things could break, etc.
Depending on what rate you could get, you may or may not save much at all, but staying in the lease means you have no risk at the end of it if you decide you want something else. Just turn it in.
Or you can buy it at the price you’ve already agreed to.
Also, if you finance it to buy it now, make sure to factor in GAP coverage you may need.
Great point. My auto insurance offers GAP for lease/purchase when you get it new from the dealer, but you can’t get add it after. Adding it when switching from lease to finance may be tricky.
And if OP finances it and it’s totaled, they’re bringing their checkbook to its funeral because that car is flipped.
Just ride it out, since % interest rates are similar lease vs buy… Personally I would’ve gotten another Subaru if I were to keep it for 10 years, or a Toyota/Lexus but not this Volvo
May I ask why not THIS Volvo? I hear some people rag on Volvo about reliability, but I also hear just as many Volvo fans speak very highly on reliability.
This is my first Volvo, so I’ll have to wait to judge. I just can’t imagine it’s much different than any other car…if kept up to speed should easily last 10 years / 150,000 miles or so. I would expect a “luxury” brand to cost more for maintenance of course, but still I would expect it to run decently for many years.
Spend some time on Swedespeed looking at the SPA specific posts. This gen XC60 (we have 3 in the extended family) tend to have AC issues after the warranty expires. One of ours had an $800 repair followed closely by a $6000 repair at approximately 4.5 years / 33k miles. Another had an engine cylinder replaced (can they do that) around 10k miles. More often the XC90 - but it’s the same engine - seem to have catastrophic engine issues before 100k for stupid reasons. I think they finally resolved the squeaky rotor issues from the last T5/T6s but I feel like everyone who leased one pre-pandemic was getting rotors and brakes replaced as often as I did. Some of the electronic controls that replaced physical ones - e.g. the haptic sunroof control and the digital shifter - appear to have higher failure rates than their physical predecessors. YMMV
Finally, it’s all preference, but IMO Sensus > Android Automotive when it comes to stability. Every time something goes wrong, the answer from Volvo service is another software update that either doesn’t fix the issue, or barters it for a different one. The last release of AAOS that was stable for me was 2.09 before maps were available on the center dash display. If it was just the infotainment system, it wouldn’t be worth mentioning, but it also affects the safety systems, the backup camera, ECU and TCU.
This V60 is my second Volvo lease, and I would lease another — I’ll never own one.
@jeisensc already covered from his own experience, some may last even 20+ years with no issues, but my assumption is usually as a TCO, we really don’t have your details on the deal but leasing then buying adds to the TCO over MSRP in general… I always mention Toyota/Lexus when owning is the goal-plenty of facts/real life stories as to why, and sometimes we all make decisions that are not always right-but we learn and not make same mistakes twice is the goal. (Tesla Y purchase in 2022 kham kham- darn I even canceled my Cybertruck order yesterday, priorities change)
My personal choices have changed and now I just look for the best deals-don’t care much about what car it is or the “depreciation” factor… I also factor in the fueling situation as well, Free EV charging etc.
Free Hydrogen…Mirai was a great “cheap” monthly deal I did, and still stand behind the deal-but I did understand all of the TCO/Poor resale values even before I bought it, and it was still cheap enough-considered all incentives and all…TCO
Ioniq 5 at $88/mo steal of a deal
EDIT: Just pulled a quick quote for a 2014 150K miles:
Toyota Rav4 $7800 vs Volvo XC60 $2800
just sold my 2014 Outback.