buying a 2020 xc90 volvo

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Topic Author
drhkulkarni
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Joined: Sun Aug 23, 2015 12:37 pm

buying a 2020 xc90 volvo

Post by drhkulkarni »

We need to turn in our 2018 xc90 T5 Volvo after a 3 year lease. my wife likes the Volvo....we are considering either leasing a 2021...but after my first lease, it turns out I dont enjoy leasing.

Our dealership was offering us a new 2020 XC90 T5 for 46K....which sort of handles the massive first year depreciation. I know Volvos are not long-term reliable options...but I was thinking even if I drive it for 3-4 years and sell it after that...it would probably sell for 32K (https://caredge.com/volvo/xc90/deprecia ... =3&m=10500). This turns out to be < $400/month over that period of time, which is 2/3rds the cost of a new lease.

Am I missing something here? Or is this a good deal? Volvo has a 4 year 50000 mile warranty....so that would take care of the reliability issues in the 4 years.

Any thoughts?
Annabel Lee
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Re: buying a 2020 xc90 volvo

Post by Annabel Lee »

Sounds like a pretty good deal to me. See if they’ll do $44k?

Following as I am likely going to do the same thing around Christmastime. I’ve had nothing but extremely positive experiences with my 1st gen XC60 with the possible exception that this time, I’ll spring for AWD.
onourway
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Re: buying a 2020 xc90 volvo

Post by onourway »

I think you should buy if you want and consider holding it a lot longer than 3-4 years. We have owned Volvos long-term for decades and while they aren’t generally Toyota levels of reliability, they are generally just fine. One of our current vehicles is a ‘13 XC70 with every option, now approaching 130k, and it has required exactly zero repairs outside of regular maintenance (oil, tires, etc).

That said, how are you figuring that $400/month is 1/3 of the cost of a lease for a T5 (Momentum I presume?). You should be able to lease one of those for somewhere around $550/month all-in - taxes, fees, everything. If your dealer will actually sell it to you for $46k, you should be able to lease the same vehicle for a whole lot less than even that $550 number.

Go to leasehackr.com, put in your region and choose Volvo, then look for the google doc link from each broker which will show you their list of typical current prices.
Topic Author
drhkulkarni
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Joined: Sun Aug 23, 2015 12:37 pm

Re: buying a 2020 xc90 volvo

Post by drhkulkarni »

Thanks for the inputs

One reason I probably won’t hold onto it long term is I would switch to a hybrid car when there are more options. Right now none of the hybrids are very good in 3 row suv category but looks like a bunch of new ones will come out in next 2-3 years a

For your xc60, how much do you usually end up spending each year on your maintenance/repairs once it crosses the 4 year mark? That’s the part I’m worried about, compared to something like a Toyota.
onourway
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Re: buying a 2020 xc90 volvo

Post by onourway »

We currently have 2 older Volvos; a 2010 and a 2013. Looking over the past 4 years of expenses which is what I can easily pull up we've spent an average of about $200/month in maintenance for both of them ($100/month each). This includes everything - oil, tires, repairs, etc. This is heavily weighted towards the older vehicle which has required some expensive maintenance in the last 2 years as it's approached 10 years old. Some of this is specific to our location (expensive exhaust work primarily due to the heavy salt use here), and also includes a big expenditure on tires after some very expensive tires lasted us just over a year and the manufacturer wasn't willing to fully honor their warranty. Note that these expenditures are lumpy - many months require zero. Other months we've spent $1500.

Like the '13, the '10 really required very little prior to that - really nothing other than oil, tires and brakes until about year 7.
Jack FFR1846
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Re: buying a 2020 xc90 volvo

Post by Jack FFR1846 »

Have you considered buying the leased vehicle? Much cheaper and you know there's not some skeleton hiding in there from an incident not reported. You mention the big first year depreciation hit. Well, you've gotten beyond that (you paid for it already in your lease payments), so why not take the lower cost part now? I don't know if Volvo offers a factory extended warranty, but if they do, maybe pay that now and not worry about the car going forward.
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onourway
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Re: buying a 2020 xc90 volvo

Post by onourway »

Buying the leased vehicle may or may not be a good deal. For most brands, the buyout price is fixed - there is no negotiation allowed - and for luxury vehicles the residual value is often inflated by the manufacturer in order to make the lease payments competitive. That said, it's just a phone call to find out what the buyout price is and you can compare that to the used market.

One other factor may be that the 2018's were only the 3rd year of the new platform - I would expect a new '21, now 6 years into production, to be more reliable long-term.
Topic Author
drhkulkarni
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Re: buying a 2020 xc90 volvo

Post by drhkulkarni »

What the poster above said.

I only put 19K miles over 3 years on my leased Volvo, so technically it makes sense to buy it. But there is no negotiation, and I think the safety components seem better in newer models.

Does anyone know how well do used volvos sell (for example if I sold mine in 5-7 years)?
onourway
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Re: buying a 2020 xc90 volvo

Post by onourway »

If you drive that little, you could arrange a 7500 mile/year lease which will lower the price further from the prices I mentioned above.

As for used prices, you'd just have to see what's on the market in your area at that age. For the XC90 it's a bit hard to estimate as it was switched to the new platform about that long ago, with the last models from 2014 being on an 11 year old platform at that point. However probably something around $20k for a 7 year old, well kept, low mileage model is a reasonable estimate.
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queso
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Re: buying a 2020 xc90 volvo

Post by queso »

We rolled the dice after 15 years of nothing but Hondas and bought a 2020 XC90 last July. Haven't had it long enough to deal with reliability and thanks to COVID it still has less than 2000 miles on it. Maybe one of these days I'll get to drive it into the office. :happy
hi_there
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Re: buying a 2020 xc90 volvo

Post by hi_there »

drhkulkarni wrote: Fri Mar 19, 2021 8:04 am What the poster above said.

I only put 19K miles over 3 years on my leased Volvo, so technically it makes sense to buy it. But there is no negotiation, and I think the safety components seem better in newer models.

Does anyone know how well do used volvos sell (for example if I sold mine in 5-7 years)?
A Volvo XC90 will depreciate 65% after 5 years and have a 5 year resale value of $21,661.

https://caredge.com/volvo/xc90/depreciation
FoolStreet
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Re: buying a 2020 xc90 volvo

Post by FoolStreet »

drhkulkarni wrote: Thu Mar 18, 2021 9:42 pm We need to turn in our 2018 xc90 T5 Volvo after a 3 year lease. my wife likes the Volvo....we are considering either leasing a 2021...but after my first lease, it turns out I dont enjoy leasing.

Our dealership was offering us a new 2020 XC90 T5 for 46K....which sort of handles the massive first year depreciation. I know Volvos are not long-term reliable options...but I was thinking even if I drive it for 3-4 years and sell it after that...it would probably sell for 32K (https://caredge.com/volvo/xc90/deprecia ... =3&m=10500). This turns out to be < $400/month over that period of time, which is 2/3rds the cost of a new lease.

Am I missing something here? Or is this a good deal? Volvo has a 4 year 50000 mile warranty....so that would take care of the reliability issues in the 4 years.

Any thoughts?
I love that Volvo's come with electric plugs. See if you can find one with a plug so that you can save $$ on gas.
sk2101
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Re: buying a 2020 xc90 volvo

Post by sk2101 »

You can lease a 2021 XC90 for $450-500 (maybe less if you do 7,500 miles/year). Add the taxes to your purchase price and it's about the same monthly cost as buying. It's an easy decision in my mind.
Last edited by sk2101 on Mon Feb 21, 2022 3:37 pm, edited 1 time in total.
Topic Author
drhkulkarni
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Joined: Sun Aug 23, 2015 12:37 pm

Re: buying a 2020 xc90 volvo

Post by drhkulkarni »

FoolStreet wrote: Fri Mar 19, 2021 2:38 pm
drhkulkarni wrote: Thu Mar 18, 2021 9:42 pm We need to turn in our 2018 xc90 T5 Volvo after a 3 year lease. my wife likes the Volvo....we are considering either leasing a 2021...but after my first lease, it turns out I dont enjoy leasing.

Our dealership was offering us a new 2020 XC90 T5 for 46K....which sort of handles the massive first year depreciation. I know Volvos are not long-term reliable options...but I was thinking even if I drive it for 3-4 years and sell it after that...it would probably sell for 32K (https://caredge.com/volvo/xc90/deprecia ... =3&m=10500). This turns out to be < $400/month over that period of time, which is 2/3rds the cost of a new lease.

Am I missing something here? Or is this a good deal? Volvo has a 4 year 50000 mile warranty....so that would take care of the reliability issues in the 4 years.

Any thoughts?
I love that Volvo's come with electric plugs. See if you can find one with a plug so that you can save $$ on gas.
Yes if we lease we plan to lease a Volvo XC90 T8 (the plug in version). Now if we buy - thats another issue...hence the discussion.
Topic Author
drhkulkarni
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Joined: Sun Aug 23, 2015 12:37 pm

Re: buying a 2020 xc90 volvo

Post by drhkulkarni »

sk2101 wrote: Fri Mar 19, 2021 2:41 pm You can lease a 2021 XC90 for $450-500 (maybe less if you do 7,500 miles/year). Add the taxes to your purchase price and it's about the same monthly cost as buying. It's an easy decision in my mind. Also, after owning 2 Volvos that I kept 8-9 years, the only way I will ever consider another one is through leasing.
Good to know, why do you say that? Also good to know about $450-500. I didnt realize its that cheap....I felt its at least $600 or more. If we lease it would be a T8, which is probably more expensive than a T5. What are the issues that came up in your 8-9 year ownership that made you feel that way?
trufflepig
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Re: buying a 2020 xc90 volvo

Post by trufflepig »

We bought a 2 year old XC90 T6 Momentum with 10800mi for $42k - love it. There is an emotional aspect of buy v. lease that you have to judge for yourself, I've done both. Financially it seems like the breakeven point is about 4-5 years of ownership - if you keep cars longer than that it's usually better to buy.
sk2101
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Re: buying a 2020 xc90 volvo

Post by sk2101 »

drhkulkarni wrote: Fri Mar 19, 2021 2:55 pm
sk2101 wrote: Fri Mar 19, 2021 2:41 pm You can lease a 2021 XC90 for $450-500 (maybe less if you do 7,500 miles/year). Add the taxes to your purchase price and it's about the same monthly cost as buying. It's an easy decision in my mind. Also, after owning 2 Volvos that I kept 8-9 years, the only way I will ever consider another one is through leasing.
Good to know, why do you say that? Also good to know about $450-500. I didnt realize its that cheap....I felt its at least $600 or more. If we lease it would be a T8, which is probably more expensive than a T5. What are the issues that came up in your 8-9 year ownership that made you feel that way?
Yes, the T8 will be more to lease.

All of these are things I had to pay for (out of warranty). I did not include issues covered under warranty.
Last edited by sk2101 on Mon Feb 21, 2022 3:36 pm, edited 1 time in total.
Annabel Lee
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Joined: Sat Nov 24, 2018 8:18 pm

Re: buying a 2020 xc90 volvo

Post by Annabel Lee »

drhkulkarni wrote: Fri Mar 19, 2021 7:01 am Thanks for the inputs

One reason I probably won’t hold onto it long term is I would switch to a hybrid car when there are more options. Right now none of the hybrids are very good in 3 row suv category but looks like a bunch of new ones will come out in next 2-3 years a

For your xc60, how much do you usually end up spending each year on your maintenance/repairs once it crosses the 4 year mark? That’s the part I’m worried about, compared to something like a Toyota.
Late response as I haven’t been on BH this week. We just crossed 4 years last year on our XC60 and spent $700 for various little things in December. I bought 4 new Michelins the year before for $900 installed from Costco.

It has really been an excellent vehicle - despite low miles, we’re hard on it (multiple 1-2 mile trips per day).
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