Is this my best option? Buying out our 2019 Volvo Xc90 lease

Ask the Hackrs Buy/Finance
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Currently have a 2019 Volvo Xc90 T6 AWD with a lease ending June 1st. Original lease (MSRP: $62,030, Selling Price: $53,947, $6,000 MSD) was 39 months at $592 per month. We were able to get an extra 3 months extension. Attempted to extend further, however Volvo will not budge.

The vehicle has approximately 28,600 miles and currently has a payoff of $37,878.84 (payoff amount includes required Illinois sales tax). Have checked on the value over the last several months and it has fluctuated a bit, however seeing the following currently:

Vroom: $41,073
Carvana $40,252

In researching new potential vehicles and the current deals, there is really nothing that seems like a deal even halfway decent for the type of vehicle we want/need at this time. Was most looking at the Volvo Xc90 T8 extended range or the BMW X5 45e.

I suppose I could try and leverage the 3rd party values to get Volvo to make me an offer and use the equity to bring down the cost of a new one, however still unsure if that gets me anywhere close to a decent deal/payment.

The above has led me down the path of leaning towards buying out the lease. Seems like there are some credit union rates at 2.19% that I could take advantage of.

If i purchased it, my goal would be to hold onto to it for a bit longer and see if things get back closer to normal and then look for a new vehicle. We don’t use the car to commute as it is basically just to drive kids to school and around town for errands, so don’t anticipate putting a ton of miles on it in the near future.

My only real hesitation at this point is the potential maintenance costs (tires, brakes, etc.) that I might have to foot in the near future as they could add up. I have not been able to get any reliable information about getting the car “certified pre-owned” to give me some extra coverage and doubt that the cost for that is worth it, but would be open to it if it makes sense.

So at this time just looking for a bit of gut check to make sure I am considering and factoring in everything pertinent to make a final decision.

Thank you in advance!

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Not sure what MFs are looking like at Volvo or BMW right now on the models you listed, but probably not worth putting your equity into it just to get a lower payment. This is dependent upon the rate you are being charged, but probably better to put it towards MSDs instead of cap cost reduction.

If you are open to purchasing your current vehicle that is probably the best option. You are effectively getting it with a few grand of equity at your buy out price. I will say used care prices have been trending down recently so you may not be capturing as much of that equity if market trends stay this way.

Volvos do have a pretty bad depreciation curve on their commodity models even nearing 4-5 years old. If you can get a palatable deal on something new at least you’re not having to worry about tires/brakes/etc. and you get to drive a new car under warranty.