Volvo XC90 T5 MOM AWD PNW ($620/mo pre-tax, $3K DAS)

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Year, Make, Model, and Trim: 2021 XC90 T5 MOM AWD. Minimal packages which is what we wanted - climate, navigation, 20" wheels
MSRP: $56,675
Selling Price: $51,975 (8.3% pre-incentive discount before MF markup, 5.5% after - see below)
Monthly Payment: $617/mo pre-tax, $680/mo post-tax. Seattle taxes suck
Drive-Off Amount: $2,973 (acq fee, doc fee, TTL, 1st mo pmt)
Months: 36
Annual Mileage: 7,500
MF: .00216 (buy-rate is .00166, so the mark-up cost me about 2.8% in pre-incentive discount. adjusted pre-incentive discount is around 5.5%). wasn’t interested in MSDs
Residual: 59%
Incentives: $2,750 total ($750 A-plan, $2,000 lease cash). Dealer said that A-plan changed recently and is no longer invoice pricing. Instead it’s now only a $750 incentive. Signed yesterday using May numbers (I saw that XC90 wasn’t included in Costco and didn’t care to wait to see what June numbers looked like).
Region: WA
Leasehackr Score: 7.2
Leasehackr Calculator Link: Link

Certainly not a good deal by any means but with the current conditions and being in the PNW I was ok taking it. Mostly sharing as a data point for others in the area. My goal going in was around 7% pre-incentive discount, knowing PNW dealers don’t negotiate much. I was ok taking 5.5% since it’s the color (thunder gray) and trim we wanted. I tried every dealer in WA and OR, as well a few in CA and AZ. I also checked a few broker deals. I did compare to one of the better broker deals and it looks like i would have saved ~$35/mo effective payment after considering $400 broker fee + ~$1,800 shipping across the country. Wasn’t worth it to me for the savings to wait roughly a month for the car. Here’s a link for the broker deal i compared to, where i added in broker fee & shipping into dealer fees.

So far loving the car and way fancier than anything we’ve had before! Originally liked the 6 passenger version of the car which forces you into the T6/T8 engine, but didn’t like the price increase when the T5 engine felt like plenty for our needs. Glad we ended up going this route!

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IMG_95704032×3024 2.05 MB

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Congrats and thank you for the detailed write up. Did you consider MSDs to bring down the monthly?

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No problem! I did consider it, but wasn’t interested in tying up $6,500 when I’ve got it invested in the market.

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Congrats! Nice looking car.

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Thanks! The thunder gray is amazing. Looks a bit different at various angles or in different lighting.

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Congrats. Great color.

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Great write-up, looks very nice!

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Now that June numbers are out i re-ran the calc - like most predicted, numbers did get worse. Residual dropped 2 points from 59% to 57% and money factor decreased, but not enough to make up for the RV drop (MF went from .00166 to .0015). Lease cash is still $2k. Assuming a-plan is still $750 incentive and the dealer would have used the same MF markup, my payment would have been ~$20/mo higher. Link

Update: Urus shared below that A-plan decreased from $750 to $500. New link

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Thanks for reporting back

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It dropped to $500 on all models. And Volvo removed all traces of invoice pricing on a-plan

The Authorized Volvo Car retailer determines final sale price, base MSRP does not include packages, options, destination charge, port installed accessories or dealer accessories (if applicable).

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Just a quick question… do we have a conclusion if A-plan applies to T8s or Recharge?

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No idea, but there is no T8 or XC40 Recharge trims/models under eligible vehicles. Rules are pretty clear, though:

The A-Plan by Volvo program is intended for the purchase or lease of new Volvo’s.

  • Visit the [Vehicles] section on the A-Plan website to review current vehicle eligibility and incentives.
  • Some new models or models in limited supply may not be program eligible. Vehicles may be ordered from production or may be selected from the inventory of the retail facility.
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Interesting, thanks for the update. Guess my “gamble” did pay off.