I'm coming to the end of a 3 yr lease on a 2006 XC90 (3 yr, 36K mi @ $3K down + $400/mo). Sticker was $42K.
Is the residual ($22K) based solely upon original sales price minus the total of my down/monthly payments? or are they basing the residual upon current market value, etc? Just wondering, cuz I feel my residual is a little low, and it might be worth it to me to just buy it at the end of the lease.

I recently spoke my Volvo dealership, and they 'hinted' that they might negotiate a little on that $22k residual price if I decided to buy it.

Lastly, If I decide to buy it out at say $22K, what other fees am I subject to? Tax on $22k and ?
There should be no 'delivery' or 'dealer prep' charges, etc.

 

Hi,
I am not sure about the whole lease thing, but I last weekj I bought a 2006 xc90, V8, AWD, Nav, dual DVD, basically loaded. The original sticker was almost 55k, I got it for 22K, taxes, tags, total 24K.(also a 100K warranty included)I think I got a great deal.

 

Wow. That is a great deal.
What's the milage on yours?

If this is any indication of the current market for these cars (as if Wall St isn't giving us a hint), maybe I'll have more room for negotiation when my lease is up, if I still want to buy it.

 

I would hope for your sake the dealership & Volvo would try to negotiate a good deal on the end of lease buy-out, given the market and lower value on SUV's in general since the gas prices spiked through the summer.

 

If you like your car and feel like $22k is a good deal, it may be the best thing for you to do. The residual is an amount that was predetermined at the beginning of the lease based on what the lender thought the car would be worth today. $22k for an 06 that you know everything about isn't bad, in my view. The only other fee you'll likely have to incur is the "disposition fee", whichought tobe around $300. When you get to the end of the lease you'll need to call the lender and schedule to have someone come inspect the car. Soon after that's done, your dealer will be able to check and see what they can buy it for. Occasionally, they canbuy it cheaper than you can, certify it (100k / 6 year Volvo CPO warranty) and sell it back to you for the same or less money than you could've bought it for without certification. Each case is different, but the first step will be to call the lender's number for lease end services and have someone come inspect it.

Best,
Alan Edwards
http://autobahnvolvo.blogspot.com

 

Autoworld of Springfield is selling 2006-2007 Volvo XC90's Directly off Volvo lease return. They have acquired over 3 truckloads at special purchase pricing. They range from $3000-$8000 below NADA wholesale. You can call them toll free at 1-800-505-8004 between 9am-6pm CST. They are located in Springfield, mo. They can also ship anywhere in the U.S. at very reasonable prices. If you want to save thousands over your Volvo dealer, give them a call before these are gone.