Someone posted a question about the leasing deal on an '07 XC90 with the new
3.2 ltr 6-cylinder engine.  Nice car --- we've used it as a loaner from our
dealer, but we still like our V8 better (it gets better gas mileage).

Anyhow, the lease deal price on the car mentioned by the poster was $45K+,
and I would hasten to point out that this sounds like the dealer's lease
deal.  You need to work your own lease deal, and the first part of that is
negotiating the purchase price just as though you were buying the car.  $45K
for that model is right at the MSRP, which you never pay for a car..  You
then need to evaluate the specs of Volvo's and competitive (banks') leasing
deals which include the residual value (what the car is worth at the end of
the lease period, and consequently what you're paying on the lease, ie., the
agreed-upon price (minus a down payment) less the residual, which amounts to
the depreciation ), and the interest rate which is expressed as a "cost
factor" where the lower, the better.  You also need to be sure that it is a
closed ended lease (no balloon balance or payoff at the end), and that you
have an option to buy the car at the end of the lease period for the
residual value.  You also need to compare the cost per mile for any mileage
in access to the lease-specified mileage for the term of the lease.

We've leased from Volvo when they had a "cost factor" sale, and also from a
bank when they had a better deal.  We've always leased for 36 months for 15K
mi/year (total 45K), and never paid a security deposit or processing fee
(everything is negotiable....).

You can't know if you have a good deal for you unless and until you've done
this homework and negotiations.  In other words, the dealer's deal is
favorable to him, not to you, and you can always do better.  After all, it's
your money. Good luck.

DRawson
mdrawson@cox.net