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<b>Initial Residuals Values Leaked For XC90!</b><p><BLOCKQUOTE>quote:<HR>From: <b>Auto Spies</b><p>The upcoming XC90 will try to do some damage to Mercedes-Benz, BMW, Acura, and the others when the new XC90 goes on sale in November.<p>Not only is the new SUV better than all the existing offerings from these manufacturers, they intend to give the XC90 <FONT COLOR="red"><b>class--leading</b></FONT> residuals and money factors, to help further the pain they hope to instill on the others, in this class.<p>On launch, the XC90 will have a 63% residual on 36 month leases, and that is with 15K miles allowed, not just 12K like the others. The residual becomes 65% if you only need 12K miles per year. The Spies believe this is a winning recipe to steal market share from the leaders in this pack.<p>We can almost guarantee you that they will. Mercedes-Benz, BMW, VW, Lexus, Infiniti, Nissan, and Porsche engineers, you'd better get a third seat in your SUV's toute de suite, or these guys are gonna eat your lunch for a long time in this segment.<HR></BLOCKQUOTE><p>-Drew
 

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Re: Initial Residuals Values Leaked For XC90! ([email protected])

Your residual numbers are accurate given the lease estimate given me by my dealer last week. However, the money factor (.00355) equated to an interest rate of 8.5% which is way over what I think is reasonable in today's economy. Add to that a refusal to move off sticker price, and I had a lease payment of well over $800 a month for a nicely equipped T6 5-seater. I've kind of cooled off on the idea of an XC-90, although I think its a great car..
 

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Re: Initial Residuals Values Leaked For XC90! (JBFO3)

<BLOCKQUOTE>quote:<HR>Your residual numbers are accurate given the lease estimate given me by my dealer last week. However, the money factor (.00355) equated to an interest rate of 8.5% which is way over what I think is reasonable in today's economy. Add to that a refusal to move off sticker price, and I had a lease payment of well over $800 a month for a nicely equipped T6 5-seater. I've kind of cooled off on the idea of an XC-90, although I think its a great car..<HR></BLOCKQUOTE><p>Ask your Retailer to quote you a lease payment from another bank. They are using Volvo Finance's rates which are ridiculous. They are <B> <U>OUT TO LUNCH!!!</U> </B> Who the heck knows what they have been smoking! <IMG SRC="http://www.stopstart.fsnet.co.uk/smilie/pimp.gif" BORDER="0"><p>We are using other banks and their payments are about $85/mo LESS then Volvo Finance's. If they are such morons as to give the Retailers rates of 8% or 8.5%, let them sit on the sidelines and fall asleep while the other banks steal all the business from them <IMG SRC="http://www.mansun-nl.com/smilies/sleeping.gif" BORDER="0"><p>Yannis
 

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Re: Initial Residuals Values Leaked For XC90! (GrecianVolvo)

Yannis, of course the rates are out of line. My dealer suggested other financing, but the fact remains that depreciation (which is unchanged by the money factor) drives 2/3 of the lease cost in my example. Even if I drop the money factor to 5%, the payment is still in the mid-$700 range with depreciation carrying 75% of the load. I think Volvo recognizes this and the high lease cost is the primary reason they have jacked the residual a few points. Bottom line is, I've never paid sticker for a car, and I'm not starting now. Its a nice car, just overpriced at the time that I need it. Add to that the insurance costs being high due to (i) twin turbos, and (ii) limited parts availability at launch ... and I just can't rationalize it. <IMG NAME="icon" SRC="http://********************/smile/emcocktl.gif" BORDER="0"> <BR><BR>
[Modified by JBFO3, 4:48 AM 10-20-2002]
 

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Re: Initial Residuals Values Leaked For XC90! (JBFO3)

While I agree that the lease rates are too high I do take exception with the statement that the XC90 is overpriced.<br>I think that if you look at the competition and how they are priced and equipped, you find the Volvo is in the middle of the pack.<br>ANY $40,000 car isn't going to lease cheaply.<br>The residual is very strong, Chase has a .00230 money factor, which is 5.5%, this is reasonable given the market.<br>Finally, we have a car that we don't have to apologize for, or give away<br>This car can stand on its own merits and justify its price point.<br>I realize that this will price some people, especially long time Volvo people out of the market for this car. I feel that we will still be very successful with the XC90!
 

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Re: Initial Residuals Values Leaked For XC90! (VolvoMax)

I think Volvo will be successful with the XC-90. But at $45,000 (not $40,000) I'm just not going to pay sticker and I think the prospective purchaser market is thinned somewhat, especially for people who want a well appointed SUV but don't need seven seats. And if Jaguar can afford to offer a .00099 money factor, then so can Volvo. <p>Yes, other vehicles in its segment are overpriced too, and that is precisely where Volvo lost its ability to really make some competitive inroads. Nice car, just not worth it to me. Enjoy yours.
 

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Re: Initial Residuals Values Leaked For XC90! (VolvoMax)

<BLOCKQUOTE>quote:<HR>Chase has a .00230 money factor, which is 5.5%, this is reasonable given the market.<br><HR></BLOCKQUOTE><p>Wow...you guys are lucky. Our Chase factor is 0.00275 (which is still much better than VFNA's factor...they are totally out to lunch; they are going to lose so much business it is not even funny!).<p>Yannis
 

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Re: Initial Residuals Values Leaked For XC90! (JBFO3)

Jaguar is also losing money for Ford as well.<br>The point of building the right car is that you don't have to give it away!<p>You can always buy a 2.5t for $38-40,000<br>IMHO however its silly to spend 40k and not get what you want, when you can spend 45 and get everything.<p>If the other SUV's in the segment are overpriced why are they selling for all the money? BMW-Acura etc.
 

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Re: Initial Residuals Values Leaked For XC90! (JBFO3)

<BLOCKQUOTE>quote:<HR>I think Volvo will be successful with the XC-90. But at $45,000 (not $40,000) I'm just not going to pay sticker and I think the prospective purchaser market is thinned somewhat, especially for people who want a well appointed SUV but don't need seven seats. And if Jaguar can afford to offer a .00099 money factor, then so can Volvo. <p>Yes, other vehicles in its segment are overpriced too, and that is precisely where Volvo lost its ability to really make some competitive inroads. Nice car, just not worth it to me. Enjoy yours.<HR></BLOCKQUOTE><p>What do you mean that "Volvo lost its ability to really make some competitive inroads"? I understand that you, as a consumer, would prefer to see this car being hugely discounted right off the bat (like the rest of Volvos -- but I will blame Volvo AB's OVERproduction for that, first, and some idiotic Volvo dealers next). But that is what the <I>TRUE MARKET VALUE</I> of this car is at this present time. There are plenty of other cars that sell for <B> <I>OVER</I> </B> MSRP and people do not utter one iota of a compaint; Mercedes SLs sell for well over $30,000 over MSRP, Mercedes E320 and E500 sell for at least MSRP, Nissan 350Z sells for <I>at least</I> MSRP, same goes for the new Infinity G35, Honda Odyssey sells as much as $3,500 over MSRP, same goes for the Pilot. Acura MDXs are not discounted at all, while several other lower priced cars sell for that much also. <p>I udnerstand that you may have a problem paying MSRP for a vehicle but I do not understand what <I>drives</I> you to not want to do that. If you can answer with a "yes" basic questions such as "does the XC90's safety features impress you in a way that you would like to own one", "does the XC90's style appeal to you in a way that you would like to own one", "does the XC90's new technology impress you in a way that you would like to own one", then why be concerned with the MSRP and not focus on the car itself? Especially since the supply is not forecasted to exceed the demand, all you are doing is you are excluding yourself off owning an XC90 just because. Most likely, you are going to pay MSRP when you buy a house, a boat, a top of the line kitchen stove, the latest electronic gadget that you were so impressed with, etc. Or if not MSRP, the profit percentage will be tenfold of what you would pay for an XC90.<p>You like the car and there is no prospect in the near future of being discounted (and you can afford it)...BUY it!<p><br>Yannis
 

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Re: Initial Residuals Values Leaked For XC90! (GrecianVolvo)

<BLOCKQUOTE>quote:<HR>But that is what the <I>TRUE MARKET VALUE</I> of this car is at this present time. There are plenty of other cars that sell for <B> <I>OVER</I> </B> MSRP and people do not utter one iota of a compaint . . .<p> If you can answer with a "yes" basic questions such as "does the XC90's safety features impress you in a way that you would like to own one", "does the XC90's style appeal to you in a way that you would like to own one", "does the XC90's new technology impress you in a way that you would like to own one", then why be concerned with the MSRP and not focus on the car itself?<p>Yannis<HR></BLOCKQUOTE><p>Yannis: <p>1. <B>TO ME</B>, the true market value of this car to me is not sticker. I might pay $40k for it, not $45. I also don't appreciate Volvo gouging me on the price or the financing. And yes I can go elsewhere to finance, but why should I have to???? IMHO, and looking on various Volvo boards, I'm not the only one who thinks the XC-90 is overpriced. Short term gouging because that is what the market will bear currently does not help you to get new customers into Volvos and make inroads on people's perceptions of them as stuffy and overpriced.<br>2. People pay a lot of money for different things. Why is someone else paying $30k over sticker for a Mercedes relevant to my purchasing decision?<br>3. In regards to your "if you like it, buy it" argument, the safety features are nice and were part of the reason I bought my S80 T6. The styling of the XC-90 is ok, but IMHO the interior is nowhere near as nice as it should be for $45k. <p><br>Let's just agree to disagree. Out.<br>
 

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Re: Initial Residuals Values Leaked For XC90! (JBFO3)

<BLOCKQUOTE>quote:<HR>Let's just agree to disagree. Out.<br><HR></BLOCKQUOTE><br><i>Whooooaa! Not so fast, "Trigger"! Arguing my point is one of my favorite hobbies! <IMG NAME="icon" SRC="http://********************/smile/emwink.gif" BORDER="0"></i><p><BLOCKQUOTE>quote:<HR><br>1. <B>TO ME</B>, the true market value of this car to me is not sticker.<HR></BLOCKQUOTE><p><i>May I ask why? True Market Value is definitely governed by supply and demand. At this point, it does not matter if you don't like it or if I or anyone else likes it, this is what it is. There is an "x" amount of XC90s going through the assembly line adn three times as many buyers. The rest takes care of itself.</i><p><BLOCKQUOTE>quote:<HR>I might pay $40k for it, not $45.<HR></BLOCKQUOTE><br><i>You can easily get a well equipped 2.5T for this price. Are you ready for it? <IMG NAME="icon" SRC="http://********************/smile/emsmile.gif" BORDER="0"></i><p><BLOCKQUOTE>quote:<HR>I also don't appreciate Volvo gouging me on the price or the financing.<HR></BLOCKQUOTE><br><i>How is Volvo "gouging" you on the price? Since when MSRP is gouging? It is a "suggested" price. If you don't like it, you can go buy an MDX or an X5 4.4 or 4.6 wher they will charge you anywhere from MSRP to MSRP+... As far as financing, yes, Volvo's rates are ludicrous but guess what? You don't have to go with them. There are many other banks begging for your money!</i><p><br><BLOCKQUOTE>quote:<HR>And yes I can go elsewhere to finance, but why should I have to????<HR></BLOCKQUOTE><br><i>What do you care? Are you going to have to walk to ten different banks? Either do it from the convenience of your home computer or let your local Volvo Retailer "take you" somewhere else...you do nto have to do anything strenuous.</i><p><BLOCKQUOTE>quote:<HR>IMHO, and looking on various Volvo boards, I'm not the only one who thinks the XC-90 is overpriced.<HR></BLOCKQUOTE><br><i>Come on now, let's stop kidding around. Where did you see that? In the BB where whining is the king? How is the XC90 overpriced? It offers tremendous amount of room, at least 5 technological firsts, great engines, tremendous safety features...overpriced? When its competitors cost at least that much or more and offering less?</i><p><BLOCKQUOTE>quote:<HR>Short term gouging because that is what the market will bear currently does not help you to get new customers into Volvos and make inroads on people's perceptions of them as stuffy and overpriced.<HR></BLOCKQUOTE><br><i>That is truly a preception at best, overreaction at worst...but you are entitled to your opinion.</i><p><BLOCKQUOTE>quote:<HR>People pay a lot of money for different things. Why is someone else paying $30k over sticker for a Mercedes relevant to my purchasing decision?<HR></BLOCKQUOTE><br><i>it is not...it was just a <U>small</U> part of an example I wrote but you also chose to focus on the extreme...why not bring up the other "more reasonable" cars?</i><p><BLOCKQUOTE>quote:<HR> The styling of the XC-90 is ok, but IMHO the interior is nowhere near as nice as it should be for $45k.<HR></BLOCKQUOTE><br><i>Altough I totally disagree I respect your opinion on ths but then the XC90 is not the car for you so do not get any grey hair about its price, etc., etc. There are plenty of other SUVs out there that are better "values"... </i><p><BLOCKQUOTE>quote:<HR>Let's just agree to disagree. Out.<br><HR></BLOCKQUOTE><br><i>Is that it? No more? <IMG NAME="icon" SRC="http://********************/smile/emsmilep.gif" BORDER="0"> </i><p><br>Yannis
 
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