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Discussion Starter · #1 ·
My brother's 2013 XC90 3.2 will be off lease in a few months.

Never a mechanical problem, dealer maint by the book, 33K miles, residual buy out $22K.

Seems like a great deal to me.

Any thoughts?
 

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I'd look at comparable vehicles and see where the price falls, and decide if you want to keep it.. Its really up to you lol.. Have you tried to haggle them down? My gf haggled with Toyota and got her lease for really cheap.
 

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I know nothing about the used market in the US but certain things are the same wherever you are. If you know the car, you like it and the price is fair to a bit on the high side then buy it. You're buying peace of mind apart from anything else.
 

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For reference, I picked up our '09 V8R-D w/ 60k, sight unseen, for just under $24k in Dec. Even though there are two less cylinders, for four years newer and half the miles plus knowing everything about the history, all for $2k less compared to my purchase? I'd say go for it. You should definitely try to negotiate on price, or try to get them to CPO it, but at the end of the day, if they don't budge, it feels like a decent deal. Peace of mind is nice.
 

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$22k? I say do it.

The dealer certified XC90s with under 35k miles are $29-$35k. IMO, certification is not worth paying an extra $7k. If you can tack on an extended warranty for not too much extra, then you would be getting a really great deal. I wouldn't pass it up!
 

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Extra 7k? The CPO is only 2k and carries the car to 100k miles... Even with it added, 24k is a great price. I got mine at 5yrs and 60k miles for 20.
 

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Discussion Starter · #7 ·
Thanks guys, I will see what I can work out with Volvo finance and report back in a few months.
 

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Extra 7k? The CPO is only 2k and carries the car to 100k miles... Even with it added, 24k is a great price. I got mine at 5yrs and 60k miles for 20.
You cannot have the CPO added UNLESS the car goes through the dealership ... that means the dealer has to own it, e.g. they buy the lease return from the leasing company, CPO it and then retail it. Guaranteed it will not be at $24K anymore.

Make sure your brother's lease contract allows a private sale. If so, $22K is an excellent price, but I have a feeling that price is reserved for use by the leasing company. After all, that "residual" price was the result of a calculation that resulted in a lease payment that your brother was willing to pay! They will first shop the car around for the highest bidder at various auctions. Manheim auction prices are currently at $24K to $26K, depending on miles, condition and features etc. Suggested retail is around 20% higher.

If you can purchase it from your brother, shop for a CPO like warranty from Route 66. Highly rated, excellent coverage and readily available from your local credit union.

GL
 

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$22k is a really good deal, BUT what are the options that come with the car and is it AWD?
 

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You cannot have the CPO added UNLESS the car goes through the dealership ... that means the dealer has to own it, e.g. they buy the lease return from the leasing company, CPO it and then retail it. Guaranteed it will not be at $24K anymore.

Make sure your brother's lease contract allows a private sale. If so, $22K is an excellent price, but I have a feeling that price is reserved for use by the leasing company. After all, that "residual" price was the result of a calculation that resulted in a lease payment that your brother was willing to pay! They will first shop the car around for the highest bidder at various auctions. Manheim auction prices are currently at $24K to $26K, depending on miles, condition and features etc. Suggested retail is around 20% higher.

If you can purchase it from your brother, shop for a CPO like warranty from Route 66. Highly rated, excellent coverage and readily available from your local credit union.

GL
Good point!
 

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Discussion Starter · #11 ·
You cannot have the CPO added UNLESS the car goes through the dealership ... that means the dealer has to own it, e.g. they buy the lease return from the leasing company, CPO it and then retail it. Guaranteed it will not be at $24K anymore.

Make sure your brother's lease contract allows a private sale. If so, $22K is an excellent price, but I have a feeling that price is reserved for use by the leasing company. After all, that "residual" price was the result of a calculation that resulted in a lease payment that your brother was willing to pay! They will first shop the car around for the highest bidder at various auctions. Manheim auction prices are currently at $24K to $26K, depending on miles, condition and features etc. Suggested retail is around 20% higher.

If you can purchase it from your brother, shop for a CPO like warranty from Route 66. Highly rated, excellent coverage and readily available from your local credit union.

GL
Nice, will look into Route 66.

$22k is a really good deal, BUT what are the options that come with the car and is it AWD?
AWD, BLIS, folding mirrors, sonar parking, and a couple of other items I can't recall, nothing major. No NAV (Garmin works great) and no rear camera which I will add.
 

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Make sure your brother's lease contract allows a private sale. If so, $22K is an excellent price, but I have a feeling that price is reserved for use by the leasing company. After all, that "residual" price was the result of a calculation that resulted in a lease payment that your brother was willing to pay! They will first shop the car around for the highest bidder at various auctions. Manheim auction prices are currently at $24K to $26K, depending on miles, condition and features etc. Suggested retail is around 20% higher.
I dont think the lease company cares who gives them the contracted residual when that price is about all they will get elsewhere. 22 is about all its worth.
 

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Discussion Starter · #14 ·
Manheim pricing trumps all ... currently at 24 to 26. The lease company will shop there first.
The lease company does not have the option to shop unless the car is turned in by the lessor.

If the the residul is $22K and the car is worth $28, the owner buys it and sells for profit. My dad did that with his Odyssey and my associate did it with his E350. Both sold to Carmax who paid off the lease and cut checks for the balance of positive equity.
 

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original lease terms were likely not good ?

I have turned in a lease, non-volvo, have dealer cpo it for 1495 (standard rate), written a 1000 "profit" for dealer, and kept the car
my price was below lease end buy out.

Market prices change and manheim is the way to go to figure it out. someone here should be able to give the manheim price for the xc90
 

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Discussion Starter · #16 ·
original lease terms were likely not good ?

I have turned in a lease, non-volvo, have dealer cpo it for 1495 (standard rate), written a 1000 "profit" for dealer, and kept the car
my price was below lease end buy out.

Market prices change and manheim is the way to go to figure it out. someone here should be able to give the manheim price for the xc90
If the market drops, one can buy it below the lease end buy out. I just turned in my Leaf and Nissan offered me $5K off to buy it out. I did not.

Chase begged me to buy out the '99 Saab 9-3 (my first lease) and called several times to remind me that the buy out was negotiable.

Of course, if I can negotiate below the $22K buy out I will but that is unlikely if Manheim is showiing $24K+
 

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Below is the current month Manheim pricing for a 2013 XC90 base (premium, platinum and R-design versions are all higher).

I also entered Manheim's price with 33K mi.

In Nov 2015 it is still at $26K+ ...

 

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Discussion Starter · #18 ·
Awesome. My brother still has 5 months on his lease so these prices will come down over that time. $22K is a no brainer in 5 months. His payoff today which includes all of his remaining payments is less than these auction prices.
 
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