Need advice on 2016 Volvo XC90 lease buyout

I’m a total newbie to leasing (first time with a lease) and need expert advice. My 2016 Volvo XC90 lease ends at the end of June and I am torn about my options. I am thinking of purchasing the car at lease end but have some questions:

  1. Am I able to further negotiate the price (residual) down with VCFS? The buyout price is actually pretty good (approx. $30K) vs. what I see in market ($32K).
  2. Is there a way to negotiate an extended warranty? I’ve never had issues with the car but want to make sure I have some coverage.

I know this isn’t the best thing to do from a financial perspective but really like the car and don’t want to deal with the hassle of negotiating for a purchase of a new car.

You can call VCFS and ask. Don’t hold your breath though. You signed an agreement that included your buyout price, should you choose to go down that path. Would you agree to 10/month more at month 8 because Volvo wanted more money, even though they are contractually locked in at your current monthly?

What do you mean “Negotiate” an extended warranty? As in price? There’s some wiggle room there, yes. Don’t expect a 6 year/100k warranty for 200 bucks though.

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They’re not going to negotiate the buyout price. You signed a contract agreeing to pay it, and thus that is what you pay.

The only times that I can think of buyouts being negotiated is G1 Volts (and that was an outside bank). Absolutely nothing else.


NMAC was negotiating on first gen Versas too, as they weren’t worth much at the end of the 3 year lease in real world numbers. They were taking a bath.

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How would I go about getting an extended warranty from Volvo via the buyout? Do I contact the dealer for that or VCFS?

I believe this is the 1st year of the newer model XC90 but the value seems to be doing ok, I guess. The car (knock on wood) hasn’t had any issues and I do really like it so performance is holding.

Just lease another one. Much less risky.


Dealership F+I

VCFS is only in the business of structuring/servicing/closing out leases. As other said, highly unlikely they’ll negotiate. The point of a lease is both parties make a bet at signing (what the car will be worth at the end of the term). If it’s worth more than the residual, CarMax or Vroom it, pay it off, and keep the difference. If it’s upside down, hand the keys to VCFS and thank them for their time.

Some brands in some states will ask you to come into the dealer to transfer at buyout - that’s a time to ask about buying an extended warranty. The dealer should be able to sell you something worthwhile (if not a Volvo warranty, JM&A or something that’s near-universally accepted). But be careful, this is an opportunity to get clobbered.

Leasing luxury is a great use of utility, it’s rarely a good financial move to buy it out. You have probably only paid 40-45% of the cap cost of that XC90 in three years, now you need to finance the balance for N years. Here in CA you have to pay tax on the buyout too.

If I were you, I’d negotiate the crap out of a new XC90 lease, get your owner loyalty, and ground that one. There is a redesign coming…


Good point. Unless you want to drive this thing until the wheels fall off, you’re going to take a hit on resale value should you buy once the new one hits the lot.

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I’m not sure if Volvo dealers are able to buy out under residual like other makes. If they can it may work to negotiate XXXX over buy out and have them CPO the car. You would get the warranty and potentially a better deal than just buying out. I would check with a few dealers unless you trust yours to give you numbers if that route works.

Volvo offers them that option and gives 48 hours to decide. My dealer was offered about 4.5k under buyout on S60.

What is CPO?

Certified Pre-Owned

Ahh - makes sense now. I like the idea buster11xx proposed and will call the dealer tomorrow. I didn’t really enjoy the experience when I was leasing so don’t have high hopes they’ll come through but will try. There is another Volvo dealer nearby so can contact them as well.

I was actually planning on keeping the car until it effectively dies so I know in the long-term, I realize this wasn’t the best fiscal decision but honestly don’t want to deal with buying a new car or getting a new lease…Thanks all for the input.

You’re essentially doing just that by attempting to negotiate your buyout.


How are folks doing with negotiating on leasing the 2019 Volvo XC90? There’s one that has been sitting on the lot for 8 months with ~200 miles on it and they’re not willing to come anywhere close to my offer of 13% off MSRP before incentives.