Volvo Lease Buy-Out in PA, questions/advice

Ask the Hackrs
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1

Greetings!

Thanks in advance for help and advice on this topic!

I have an early 2020 XC90 lease that still has another 12 months or so left on it. I’m paying $650 w/ tax on a 36/15k term, so a fairly decent deal at the time w/ zero due. This is our second XC90 lease in a row, and while it’s a first world problem…my wife is just tired of the car and wants a new one.

We have a family friend that’s a Volvo dealer and he’s confirmed (along with searching here) that there is simply no other way out of this boat anchor but to buy the lease out. So I’m looking to better understand the process and get some advice.

Here’s what I think I understand…

  1. Buy the lease out, we’d finance via our credit union
  2. Volvo sends us the title
  3. We take the title to PA DMV, pay tax, & registration fees
  4. We now own the car, titled in our name, and can trade or sell for something new

Correct? Or is there a way around this buy using the Volvo dealer to help w/ buy-out? How long does this typically take in PA?

In PA I’ve paid sales tax on the value of the XC90, so trading it on a more expensive car I only pay tax on the difference between the two…correct? So there is a trade advantage and all that tax isn’t pissed away unless I just sell it outright?

Finally…$650 for a XC90 is a killer deal in this market. Should we just be keeping the car another year and wait for things to “cool off”?

2

Unfortunately, with volvo, the only way the dealer can really buy it out directly is if you trade it in on a new volvo.

3

Keep it. You’ll lose the equity you have now, but, hopefully, you’ll have more choices for less money in a year. I traded my $436/mo XC90 and am paying $600 for an XC60.

4

Unless it’s going to impact your finances, just do it. Don’t waste a year just hoping things get better.

Life is short.

5

Volvo was trash for PA. I bought out my S60, they lost my PA mileage form twice, and I had to direct my dad to FAX it to them. ugh, true first world problems.

If you don’t trade it into another Volvo, or opt for an early termination and opt out of equity, I don’t think you have an option.

We can make armchair analyst predictions all day long, it’s hard to tell :star_struck:

6

I personally would not want to encourage my wife to simply get rid of things she is tired of, since I could be the next thing she is tired of. :smiley:

7

It is, and you should. If you want out, you are correct you need to buy it and pay tax on it first.