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"Volvo enthusiasts", I have to admit that this thread kind of irks me.

I have been a Master Certified Volvo Sales Professional for 9 years and have worked my butt off to ensure that my clients have the best possible OWNERSHIP experience for the entirety of that ownership. In those 9 years have, Volvo has had some excellent vehicles, but never have they had a vehicle that holds its own (and then some) compared to the competition as well as the XC90 does. I bet 75%+ of every new Volvo I've sold in the last 9 years has been sold from near invoice price less all incentives. I love my job and truly have a passion for the brand and helping my clients make the best decision for their families. I also take pride in the delivery process, which often is followed up with a 2nd, or 3rd tutorial and however many more it may take for the client to be confident and sure of all of the techy gadgets that (especially the new XC90) these cars have.

To everyone that purchased their $50k-80k vehicle at invoice, you should congratulate your salesman on his $150-$250 minimum commission... on a $50k+ vehicle that is in high demand...that (likely) required multiple test drives, visits, emails, and a 2 hour delivery...and not to mention his/her future help when you have challenges or questions.

And to the ones that call every dealership in a 700 mile radius just to undercut your local guy that will take care of you with a smile when you need help, that's not the coolest thing to do.

On MANY occasions (in threads here) I have heard a LOT of chatter from people about how their dealer experience wasn't great, or just downright poor from a sales or service standpoint...well, case and point, you get what you pay for and that includes service. The XC90 is not a cheap vehicle by any means, bit it is a tremendous value in its segment without a doubt.


I'm not here to hate or troll on anyone, but guys, come on... these cars are between $50k-$85k even at MSRP these XC90s are very fairly priced (and no, I know they won't all sell at MSRP forever) but dealers should be allowed to make a fair small profit when deserved.

Sorry to thread-jack...rant over!

:)
You forgot the holdback factor. The more cars you sell, the more money you'll get from corporate. It's exactly why every single Hyundai is sold at "invoice pricing" here in Toronto. Even in the advertisements they state that their dealers get a kickback for moving a certain amount of cars. If you don't like it, don't be a car salesman. This is simply how the industry works.

Also there's no such thing as invoice pricing. There's an invoice pricing that the public knows about, and then a confidential invoice pricing that only management knows about.
 

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There's an invoice pricing that the public knows about, and then a confidential invoice pricing that only management knows about.
I've heard this referred to as the "tissue" price, which I believe had to do with multi-part carbon paper forms.
 

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"Volvo enthusiasts", I have to admit that this thread kind of irks me.

I have been a Master Certified Volvo Sales Professional for 9 years and have worked my butt off to ensure that my clients have the best possible OWNERSHIP experience for the entirety of that ownership. In those 9 years have, Volvo has had some excellent vehicles, but never have they had a vehicle that holds its own (and then some) compared to the competition as well as the XC90 does. I bet 75%+ of every new Volvo I've sold in the last 9 years has been sold from near invoice price less all incentives. I love my job and truly have a passion for the brand and helping my clients make the best decision for their families. I also take pride in the delivery process, which often is followed up with a 2nd, or 3rd tutorial and however many more it may take for the client to be confident and sure of all of the techy gadgets that (especially the new XC90) these cars have.

To everyone that purchased their $50k-80k vehicle at invoice, you should congratulate your salesman on his $150-$250 minimum commission... on a $50k+ vehicle that is in high demand...that (likely) required multiple test drives, visits, emails, and a 2 hour delivery...and not to mention his/her future help when you have challenges or questions.

And to the ones that call every dealership in a 700 mile radius just to undercut your local guy that will take care of you with a smile when you need help, that's not the coolest thing to do.

On MANY occasions (in threads here) I have heard a LOT of chatter from people about how their dealer experience wasn't great, or just downright poor from a sales or service standpoint...well, case and point, you get what you pay for and that includes service. The XC90 is not a cheap vehicle by any means, bit it is a tremendous value in its segment without a doubt.


I'm not here to hate or troll on anyone, but guys, come on... these cars are between $50k-$85k even at MSRP these XC90s are very fairly priced (and no, I know they won't all sell at MSRP forever) but dealers should be allowed to make a fair small profit when deserved.

Sorry to thread-jack...rant over!

:)
Would you help me/us understand with a bit more clarity how your compensation would differ from selling an XC90 at invoice (assuming that is the $150-$250 you referenced) vs. at full MSRP? If a buyer were to also purchase an extended maintenance agreement or accessories how would that impact your compensation as well if any?
 

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Discussion Starter #44
I've heard this referred to as the "tissue" price, which I believe had to do with multi-part carbon paper forms.
Ok lets get back to pricing and leases. I agree with gentlemen that works for a dealership. But I also know the games dealers play as well. I will say that so far my experience with the 2 dealerships I have visited have been pleasant and offered a lot of advice and information. But from a consumer stand point we all want to pay the best price, the car is in high demand but I have purchased lots of high demand cars and got the best price.
 

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Would you help me/us understand with a bit more clarity how your compensation would differ from selling an XC90 at invoice (assuming that is the $150-$250 you referenced) vs. at full MSRP? If a buyer were to also purchase an extended maintenance agreement or accessories how would that impact your compensation as well if any?
Sure,
Most sales associates get paid based on a commission basis.
For example, let's say that a dealership's pay structure is based on profit and a sales associate's commission is 25%.
Most dealerships ONLY pay their sales associates on front end profit, not financing, warranties, or accessories.
Let's also say a particular XC90 is $55,000 and would have about a $3,200 markup from invoice to MSRP. If that vehicle sells for MSRP, that associate would earn $800.
If the deal is negotiated to split the difference between MSRP and invoice, they would earn $400.
If a vehicle sells at invoice or a loss, most dealers have a minimum commission (known as a "mini" in the business) to be paid to the salesperson typically ranging from $75-$200 depending on the dealership. The only cash incentive on the New XC90 is $1,000 owner loyalty to current Volvo owners and yes, the manufacturer pays that, not the dealership.

Some dealerships will pay a small spiff if the salesman helps sell a warranty.

Again, sorry to get off topic!!
 

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Well, if the majority of sales people didn't treat the potential buyers like an idiot maybe we the buyers would be more reasonable. I know there are some great sales people but the majority move from dealer to dealer and know little to nothing about their product. These types of bad sales people really hurt the reputation of the professional, honest, long term sales people.

I just emailed a dealer in Austin regarding an XC90 I'm interested in. I purchased my previous S60R at this dealership back several years ago. I got an email reply that was just beyond ridiculous stating that "as of right now it's available so when are you coming to pick it up"? I emailed asking a confirmation of all of the options and I wanted a lease quote for both 12000 and 15000 miles. I just received another email informing me of the sales price which is MSRP, still no lease quote, and then he asks if he can answer any more questions. This is the third time I've asked for a lease quote. Where do they find these people? Sorry, off topic I know.
 

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Well, if the majority of sales people didn't treat the potential buyers like an idiot maybe we the buyers would be more reasonable. I know there are some great sales people but the majority move from dealer to dealer and know little to nothing about their product. These types of bad sales people really hurt the reputation of the professional, honest, long term sales people.

I just emailed a dealer in Austin regarding an XC90 I'm interested in. I purchased my previous S60R at this dealership back several years ago. I got an email reply that was just beyond ridiculous stating that "as of right now it's available so when are you coming to pick it up"? I emailed asking a confirmation of all of the options and I wanted a lease quote for both 12000 and 15000 miles. I just received another email informing me of the sales price which is MSRP, still no lease quote, and then he asks if he can answer any more questions. This is the third time I've asked for a lease quote. Where do they find these people? Sorry, off topic I know.
You are 100% right unfortunately and the negative stereotype of the car business (especially the revolving door of salespeople) as a whole is absolutely true.

You guys all need to find a dealer as awesome as mine!! My 3 service writers have all been with Volvo for 10+ years each and without them, I'd NEVER have repeat business. My GM for 30 years, shop foreman for 30, assistant GM for 15, sales manager for 5, and 3 of the 5 salesguys over 5 years.
 

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You are 100% right unfortunately and the negative stereotype of the car business (especially the revolving door of salespeople) as a whole is absolutely true.

You guys all need to find a dealer as awesome as mine!! My 3 service writers have all been with Volvo for 10+ years each and without them, I'd NEVER have repeat business. My GM for 30 years, shop foreman for 30, assistant GM for 15, sales manager for 5, and 3 of the 5 salesguys over 5 years.
That's impressive but it says a lot about how they are treated I'm guessing also. I firmly believe if you treat your employees well the ones in the business for the long term will stay around and do a great job. My local Volvo dealer has a great sales guy that has been with them since I moved here 13 years ago. He's the guy we ordered our V8 XC90 from years ago. He's the only person in sales I believe that has been there any length of time. They also have lady in service that has been with them for several years and she was the only person I'd deal with on the XC90 and my S60R.

I finally got a lease quote but at $1293 per month, zero down, MSRP was $70,010, it's just not an option for me. They would not budge one dollar on the MSRP and I never did get the money factor even though I asked for it several times. Residual was 53% which isn't very good but I'd be willing to negotiate if the price was a little better. All I got was a very lengthy reason why the XC90 was way better than their competition, the awards it had been given, and how it was priced cheaper than any of the competition. I agreed I absolutely liked it and it was my favorite appearance wise and interior wise but overall it was quite a bit more expensive when every other manufacturer is discounting their vehicles. Oh well, I really do like the XC90 and Volvo did a great job with it but no way I'm giving MSRP on any vehicle. I was hoping to get back in the XC90 but it's looking like it's not going to happen this time around.
 

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let's not forget that Volvo has already done a at least one or two price increases since the XC90 has been out. As someone who is seriously considering purchasing the Inscription T6, my MSRP went up because Volvo got greedy and decided their car was hot and should command more money. In fact, the way I am pricing it out now, I could get a similarly equipped Audi Q7 which arguably has the superior luxury badge for a similar price. My local dealer already told me that he has seen people get 4K off more than once and not on the most expensive model. If I go with Volvo, I want the best price and let the dealer worry about how to fairly compensate its staff.
 

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I finally got a lease quote but at $1293 per month, zero down, MSRP was $70,010, it's just not an option for me. They would not budge one dollar on the MSRP and I never did get the money factor even though I asked for it several times. Residual was 53% which isn't very good but I'd be willing to negotiate if the price was a little better. All I got was a very lengthy reason why the XC90 was way better than their competition, the awards it had been given, and how it was priced cheaper than any of the competition. I agreed I absolutely liked it and it was my favorite appearance wise and interior wise but overall it was quite a bit more expensive when every other manufacturer is discounting their vehicles. Oh well, I really do like the XC90 and Volvo did a great job with it but no way I'm giving MSRP on any vehicle. I was hoping to get back in the XC90 but it's looking like it's not going to happen this time around.
And that's the thing...just because the MSRP is less than the competition doesn't mean that the XC90 is a better deal. You need to look at the entire package, not just MSRP -- especially if you are looking to lease. If the competition is willing to sell the car for $xxxx below MSRP, with a higher residual value, and lower money factor...your lease payments will be much less than a car that simply has a lower MSRP.
 

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And that's the thing...just because the MSRP is less than the competition doesn't mean that the XC90 is a better deal. You need to look at the entire package, not just MSRP -- especially if you are looking to lease. If the competition is willing to sell the car for $xxxx below MSRP, with a higher residual value, and lower money factor...your lease payments will be much less than a car that simply has a lower MSRP.
I tried to explain this to the Volvo manager but he didn't want to discuss it. He just kept telling me the Volvo was priced cheaper and was a much better vehicle. We brought a new X5 home today to test drive and see how we like it. I'm not crazy about the back seat leg room at all otherwise it's okay. I still like the interior and exterior of the XC90 more but I'm guessing I can easily lease the X5 for $200 less per month for the exact same MSRP. I'll find out for sure tomorrow or Saturday.

I just can't bring myself to pay that much more for the XC90. I've done quite a bit of business with both my local Volvo dealership and our current BMW dealership. There's no comparison in customer service, my BMW dealership is much better and they are willing to negotiate significantly to keep my business. I did see a new XC90 on the way home from the dealer and it's my favorite SUV on the market.

Just signed a 36 month lease on a 2016 X5 with an MSRP of $72,000. The XC90 Inscription had an MSRP of $70,000. 0 down on the X5 is $881 per month at 15000 miles per year. 0 down on the XC90 was $1325 at 15000 miles per year. $444 per month difference, no way that makes any financial sense to me. Love the XC90 and really thought I'd be able to get one now that they've been out for a while but gave up. Discount on the X5 was over ten grand.
 

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Inscription, climate HUD, vision, convenience, BW sound, metallic paint, air suspension, 2nd row booster, 21" 8 spoke + $995 destination = $67,955 sticker. Paid $65,347, this was December 2015 in NY. Only issues were third row belt that was twisted and some foam that was behind the speaker grill in second row. 6k miles, no problems.
 

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Just brought today. $500 under msrp. I didnt like the price, but I wanted the car. It was like pulling teeth just to get $500 off msrp. Only dealer willing to take anything off in a 300 mile radius. In California, San Francisco bay area. Very limited supply and wait times of 4 to 5 months if you order.
 

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6% under MSRP good?

I have access to a deal where I can get 6% under MSRP for any Volvo car. Is that a good deal or should I try to negotiate something better for the XC90?

Thanks,
PB
 

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Just a couple quick points.

1. t6 with 20" tires, convenience, vision, carplay, momentum plus, $3300 off MSRP. We're in the mid south region of america.
2. My wife and I literally got into an argument about rather or not we should shop the number around to other dealers. There are about 5 biggerish dealers within a 500 mile radius. Once we picked out the exact car we wanted, my wife wanted to call other dealers and see if they could beat the price we couldn't get the local dealer below. I have no problem doing this if the guys aren't going to work with you, but i liked the salesman and felt he was being honest when he said they (the small local dealership) just weren't going to go any lower. Plus, I'd rather buy local and have a person to work with on any issues. I think we were maybe $1k or a bit less above invoice. And, we didn't have to drive/fly to pick it up. I wouldn't blame people for doing it. If bottom line is your main concern, obviously it makes sense to do that.
3. Volvos lease terms are absolutely ridiculous compared to other luxury brands. Apples to Oranges regarding the cars, but apples to apples looking at costs: a lexus rx 350 with sales price of roughly $55k is about $610/month to lease after taxes and I think that was for 12k miles. Volvo with sales price of $55k is roughly $850 for 12k miles. Absurd that there's that large of a difference.
 

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Just a couple quick points.
3. Volvos lease terms are absolutely ridiculous compared to other luxury brands. Apples to Oranges regarding the cars, but apples to apples looking at costs: a lexus rx 350 with sales price of roughly $55k is about $610/month to lease after taxes and I think that was for 12k miles. Volvo with sales price of $55k is roughly $850 for 12k miles. Absurd that there's that large of a difference.
Those are my thoughts also. They are not putting any lease incentives for the XC90 yet (just like they do with the S60 or XC60).

I guess, once they start piling up on inventory, lower money factors and more lease cash incentives will be added. In fact, for March, the leasing numbers are better; advertised lease payments are like $50 less than January.

I foresee more incentives, maybe towards September 4th. I myself will target for a December delivery, the best time to buy cars IMO. Volvo has thrown all kinds of incentives by that time of the year (hey, who remembers the Costco deal?).
 
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