Automotive

Taking over a lease - am I crazy?

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[OP]
Newbie
Mar 10, 2014
37 posts
2 upvotes
London

Taking over a lease - am I crazy?

Hey everyone. I am considering taking over a lease on a Volvo XC90. I have a spidey sense that I am somehow getting ripped off, but it's a lease so the details are opaque. It is a 4 year lease; 18 months left. Payments are $910 before tax, then buyout in 18 months is $36k. Comes with many many options (some I really wouldn't pay for myself getting new) plus winter tires. Carfax checks out, called dealer and dealer states no repairs. Owner claims he got a $5700 incentive plus put money down (he either wont tell me or forgets how much).

Thing is, when I go to the Volvo Canada webpage and run all the same specs, it tells me monthly payments are 800 per month + tax with 8000 down and a buy out of $ 40, 500.

At first I thought I was getting a deal; now I'm not sure if even breaking even. Anyone have any thoughts? Anyone done something similar? Lot of money, and dont' want to make a mistake.
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25 replies
Deal Expert
User avatar
Jul 30, 2007
30462 posts
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Toronto
Just get copy of lease agreement. All the numbers being claimed can be verified from it
Deal Addict
Feb 16, 2013
1564 posts
1314 upvotes
Toronto
Not a clapped out beige Corolla. So yeah, crazy.
But it's a free country,

900 bucks goes a long way towards mortgage or rental payment.
Also it's a Volvo so depreciation is above average.

It's a subjective matter whether a highly depreciating luxury segment vehicle is "worth it".
....
Member
Aug 28, 2007
244 posts
293 upvotes
Toronto
InOverHisHead wrote: Hey everyone. I am considering taking over a lease on a Volvo XC90. I have a spidey sense that I am somehow getting ripped off, but it's a lease so the details are opaque. It is a 4 year lease; 18 months left. Payments are $910 before tax, then buyout in 18 months is $36k. Comes with many many options (some I really wouldn't pay for myself getting new) plus winter tires. Carfax checks out, called dealer and dealer states no repairs. Owner claims he got a $5700 incentive plus put money down (he either wont tell me or forgets how much).

Thing is, when I go to the Volvo Canada webpage and run all the same specs, it tells me monthly payments are 800 per month + tax with 8000 down and a buy out of $ 40, 500.

At first I thought I was getting a deal; now I'm not sure if even breaking even. Anyone have any thoughts? Anyone done something similar? Lot of money, and dont' want to make a mistake.
Bad deal.

This Volvo XC90 is only $600/m

https://sparklease.com/Auto/Show?autoId=1008682

You probably need someone to translate from Chinese if you were to contact the seller though.

you can use google translate on the website.

EDIT: Oh wait, it's a XC60
XC90.png
But this one that's already sold is only $772/m
Deal Addict
Mar 7, 2010
2612 posts
337 upvotes
Mississauga
Omg why Volvo?
You better off with BMW or Benz
And 900 a month for 18 months it's so expensive
Deal Addict
Jan 15, 2017
4470 posts
4091 upvotes
Ottawa
As you've mentioned the buy out amount, I assume that your plan is to buy it out. So for the remaining lease it's $910 x 18 = $16,380. Add in the buy out amount of $36K (and I am sure it is not exactly $36,000) and you are at $52,380. Add in tax and you are at $59,189. Add in admin fees to buy out lease and get the safety done and you are skirting $60,000 for this vehicle. Is it worth it? We don't know as you haven't shared enough about the SUV to form an opinion.
Member
Aug 28, 2007
244 posts
293 upvotes
Toronto
Actually, I looked over a lot of XC90s on lease take over sites and they're usually around 900-1000/m for leasing.

You need to give a lot more information about the car though. Which year, what trim? How large are the wheels? I think it's probably a 2017-2018 since there are 18 months left on the lease. And I think these come in 19" or 20" but the wintertire package price would differ on the wheel size. 20" winter tires is probably around $1700 from costco.

On Leasebuster.com there are quire a few XC90s that are around 900-1000/m for leasing BUT some of them come with incentives as much as $2500 which will bring your effective lease (if you divide the cashback throughout the term of the lease) down to around $600+.
eg.
https://leasebusters.com/en/details.asp?ID=323634

Anyway, if you're planning on buying out at the end of the lease, the monthly payments aren't really a big issue but if you're only going for the monthly payments, you should literally just buy a new XC90 since it's cheaper. Why would you ever take a lease that's more expensive than new?

You should make this fact apparent to the seller and get him to give you an incentive (cashback) that will AT LEAST make it even to if you leased a new car.

The thing with lease buyouts is that you aren't dealing with a dealer, you're dealing directly with an individual seller, there is a WAY bigger wiggle room depending on how badly the individual wants to get rid of their car. Use it to your advantage.
Deal Guru
User avatar
Jul 12, 2003
12186 posts
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Toronto
booblehead wrote: Just get copy of lease agreement. All the numbers being claimed can be verified from it
Exactly.

Check how much downpayment he put down
What was the incentive, is it really $5700
What was the lease rate?
How many KM allowace left for that 18 months left on the lease?
Did the person get The lease protection plan? To cover any dents or damage of the car if there are any on the car already.

From your number 800+ tax 8000 down. for how many months? How many KM allowance?
You have to compare apple to apple.

It is a lease take over, not buying out a used car. You have to look at it differently to see if make sense to take over this person's lease.

BTW, XC90 is a big SUV, equivalent to X5, GLE and Q7.
It is a very luxury SUV, not sure why people keep dissing Volvo, I wouldn't mind drive one, but lease only.
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[OP]
Newbie
Mar 10, 2014
37 posts
2 upvotes
London
Hey thanks so much. It's a 2018 Volvo XC 90 inscription 6 seater with lots of features (winter wheels, bowers and wilkins stereo). Lease rate is 1.9%. 4 year lease, total 96,000 km on lease; it's got 42,000 km on it right now.

Had no idea leasebuster was even a thing. Thanks so much - will ask to see lease agreement.

Thanks!
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Deal Addict
User avatar
Jan 14, 2007
4074 posts
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GTA
Why are people so against Volvo and the fact that the parent company is Chinese? Do these people not own/use anything that was made in China like an iPhone?

I don't own a Volvo but must admit I like their SUV's and would absolutely consider one in the future, though would likely consider leasing.
Deal Expert
Jan 15, 2006
17045 posts
15658 upvotes
Richmond Hill
Sorry, but what kind of idiot buys a family car and now fears having white leather isn't going to work well with having a kid on the way?
Also I would never take over a lease without an incentive. The owner wants to get out of it early and can't do it with the dealership or it will cost too much. Covering the paperwork is not an incentive LOL
Deal Addict
Dec 22, 2007
1083 posts
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Mississauga
work backwards with the numbers. take how much its really worth and how much it will cost you all in. I would expect a discount as the person who is trying to get out is the one that has the bigger need.
Deal Addict
Mar 21, 2013
3933 posts
5747 upvotes
Canada
EP32k2 wrote: Sorry, but what kind of idiot buys a family car and now fears having white leather isn't going to work well with having a kid on the way?
Also I would never take over a lease without an incentive. The owner wants to get out of it early and can't do it with the dealership or it will cost too much. Covering the paperwork is not an incentive LOL
Yeah this is insane. Put a cover on your backseat and get on with life. your kid will have zero impact on your front seats.
[OP]
Newbie
Mar 10, 2014
37 posts
2 upvotes
London
EP32k2 wrote: Sorry, but what kind of idiot buys a family car and now fears having white leather isn't going to work well with having a kid on the way?
Also I would never take over a lease without an incentive. The owner wants to get out of it early and can't do it with the dealership or it will cost too much. Covering the paperwork is not an incentive LOL
I found that a little suspicious as well; I wondered if it was a lemon, but carfax checks out and service records don't show any repairs. Just wondering.
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InOverHisHead wrote: I found that a little suspicious as well; I wondered if it was a lemon, but carfax checks out and service records don't show any repairs. Just wondering.
carfax may not show many things such as warranty works.
Deal Addict
Nov 16, 2016
1574 posts
1822 upvotes
Edmonton, AB
killer007 wrote: Omg why Volvo?
You better off with BMW or Benz
And 900 a month for 18 months it's so expensive
Anything is better than a Chinese made Volvo. Lol
If you love the Volvo interiors, consider a Lincoln or Benz.
Deal Expert
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Mar 1, 2008
15545 posts
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Toronto, Ontario
I'm one of the biggest Volvo fanboys on this forum but I lost interest in the modern day Volvo for the following reasons:

  1. 4 cylinder only engines. Holy shit 4 cylinders simply do not work in such a heavy vehicle. If it was a good 4 cylinder like the Germans than sure, but the last time I heard from my Volvo mechanic who works at the dealer, you do not want to have a T6 or T8 for years. Mind you this was a few years ago and I'm sure the engine reliability is better now. But still...
  2. Sensus is slowwwwwwww as hell. Also lack of buttons but the whole industry is trending towards all touch cockpits so I have no idea what I'm going to replace my MK7.5 GTI with in the future.
  3. The competition. Honestly, the Germans and even the Koreans and Japanese build much better vehicles compared to the modern day Volvo lineup. I can't remember the last time I've seen a current gen S60/V60/XC60/XC90 on the streets. I see more supercars than Volvo!

For $50k+tax, may I interest you in financing a CPO Volvo XC90 T6 AWD Momentum instead? You get extended CPO warranty and better CPO rates, assuming you buy out that leased car you're talking about.

If you want Inscription, here's one listed at $66k but I think you can get a significant reduction.

Though I'd like to ask, do you need the space and size offered by the XC90?
I spend too much time on this site

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