Rate my 2025 Volvo XC90 Ultimate - never leased before

Ask the Hackrs
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Never leased before. Drove to a dealer in NH to test drive a 2025 XC90 Recharge Ultimate without any add ons and really liked it. Got a no-haggle offer that seems good but would greatly appreciate your thoughts. I did not get an MF and when I put the below into the calculator I got different monthly payments so must have entered something wrong:

MSRP 81,765
Selling Price 75,633
Rebate 8,000
Total Savings 7,132
Proc/Doc Fee 370
Acq Fee 995
Gross Cap Cost 76,023.01
Cap Cost Reduction 7.044.10
Adjusted Cap Cost 68,978.91
Residual Value 51,511.95

36m/7500 (including MA sales tax in monthly amount):
0 Down - 956/m
2500 Down - 875/m
5000 Down - 795/m

With the LeaseHackr Calculator, I am getting a residual value of 63% which seems crazy high and makes the buyout less attractive (I think?)

Also the NH to MA seems like a bit of a pain and so, depending on your thoughts on this deal, I may take it to the more local dealer and see if will match unless it’s not as good as I hope and then see if can/will beat.

The NH purchase becomes much easier if I trade in our current car as they said they can simply swap plates rather than having to drive straight to the RMV. I know trading in for a lease is usually frowned upon but I expect 20k for the trade in so welcome thoughts on that as well (otherwise planned on doing the CarMax/Carvana thing to sell)

Thank you!

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This is an ancient model that desperately needs a replacement. There’s no good reason for anyone to pay nearly this much on it.

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Thanks. Just saw about the 90/90 announcement on 9/4 so will wait on that and, if not enough changes for my wife to car, will push back on this deal.

What would you aim for and can you figure out the MF backwards from the above?

Like I said, when I put the above into the LeaseHackr Calculator, I’m sure I did something wrong as the payments I got were hundreds lower.

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If you post your calculator link we can help identify the issue

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Without loyalty or BMW conquest I wouldn’t even look at a XC90. With either one, I’d target a deal like this.

Leasehacking requires knowing what cars are hackable given one’s personal situation.

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I made up the MF as it was not listed and didn’t want to negotiate/haggle

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I assume Loyalty is if have Volvo and BMW Conquest if have a Beemer?

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Either get an offer you can’t refuse on a 2024 or wait until the announcement next month.

For reference, with bmw loyalty and aplan I just signed an ultimate 7 seater 2024 for 606/month with taxes and fees DAS.

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You can join super supporter here to get MF/RV info or google Edmunds lease forum for your year make model to get. Making up #'s results in a meaningless payment/DAS.

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Correct

10 min characters

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What is this line? Trade in?

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The $8,000 rebate is allocated to $956 first month payment and the rest to CCR.

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Thanks everyone!

I hadn’t gotten the MF from the dealer but did see it is 0.00314 on Edmunds so plugged that in and the numbers are closer to what is on the paper but still a bit lost on whether the 8000 is taxed/untaxed.

Thanks for the info on the cap cost reduction (I was just jotting down what was on the sheet).

So after reading here and elsewhere, it seems this 2025 model year will likely be the last before the major refresh being announced on 9/4. I have some guesses on what will change but my wife (primary driver) really loved the XC90 as-is including Google, etc and is VERY excited about getting her dream car. She also has a very specific color combination she wants.

So I would greatly appreciate your thoughts on how this deal looks and where I can push back especially if a major refresh does get announced. At that point, I have to believe dealers will think of this as a ‘lame duck’ and we may be able to get closer to the closeout 2024 numbers? Maybe??

Oh and can anyone explain like I’m 5 how to ask dealers about MSD and what that looks like on the calculator/where it goes?

Updated calculator but sill doesn’t get to the 875/m with 2500 down.

Thanks again!

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Rebates are not taxed in MA. The majority of Volvo incentives are paid directly to the dealership, so rebates end up being untaxed in many states (numerous states do not tax rebates paid directly to a dealership).

They are likely marking up the MF.

There is a drop-down for MSDs. All you have to do is ask a dealership to apply multiple security deposits.

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Thanks Ashleigh!

Moving the 8k to untaxed and adjusting the MF until the monthly (after tax) hits 875 for 2500 down gets me an MF of .00377 (9.05%). Checked on Edmunds and current MF/RV on the 2025 XC90 Ultra 7-seater in MA is .00314 MF and 63% residual.

So not a very good deal after all. 8.72% off MSRP seems decent for a brand new car but MF could be better.

If my wife still wants to go with this 2025, would my target be around the same percent off but trying to get the MF lower with additional MSD payments to push it down more?

Figure unless there are huge changes she loves, this gets her in an established model and moves to the refreshed one in 3 years rather than dealing with the potential first year issues.

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I’m not sure what the market is on the 2025s but you wouldn’t be out of bounds to ask for 10%.

I would honestly email Mike (@Bostoncarconcierge) at Mike@bostoncarconcierge.com and ask him what he can do, since he’s local to you and has a great relationship with his dealerships there. He may save you both money and some back and forth with the dealership.

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In your calculator you need to move the $8k from taxed to untaxed. If you can afford to, put down MSDs. By doing that you’ve got a decent deal. Is there a dealership out there that might give you 10 or 11% off MSRP? Maybe, but you won’t know until you try.

If you’ll do a 2024, look on CarGurus.com and you’ll see a bunch that have been sitting on dealer lots for a long time. You might be able to score a unicorn deal on one of those.

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Thanks again

This post was more of a means to educate me on leases and how this ‘no haggle’ deal might have been. Now I see all the ways to get taken advantage of and will definitely turn this over to Mike as above.

Gonna wait til 9/4 to see what is announced for the XC90 Recharge but may jump on a 2025 model since wife loved it, wants specific color combo and can skip any first year issues.