XC90's going for $5000 over list price in CA

[Mr. P]

I just talked to a friend who wanted a XC90 for his wife, but ended up with a MDX in stead. Poor wife, huh??

He said the dealers in the East Bay, San Francisco area were asking $5000 over list price, due to the fact that supply is low and they are selling everything they can get their hands on.

Here in Nashville I got a good deal, and a good trade in value for our 850-T, so I consider myself kind of lucky.

Mr. P

[coachhomer]

Great googaly moogaly! I am in Florida, what do you think I can expect to pay? Why the shortage?

thanks

Scott

[Mr. P]

I think they're still feeling the impact of losing the entire first shipment of XC90's into the North Atlantic, along with a bunch of BMWs. It was a huge shipment, and the ship is now sitting on the bottom.

That, along with the supply and demand of a trendy good looking vehicle, thoughtfully designed, and durable as the day is long, will drive up the price. Here in Nashville I didn't seem to see any gouging, but things are different in Alameda County (a LOT different).

In Florida you'll just have to check out the list prices and see how far you can go. I got three rejections from the manager of the dealership before I finally settled on a model, color, equipment, and trade in value.

Mr. P

[rf_Engr]

Sorry Mr P,

Your friend hasn't done much research at all. I Live in
the Bay (SJ) area. I bought a red AWD 2004 2.5T XC90,
premium, versatility, climate, xenon, wood steering,
reverse warning, and leather shift knob three weeks ago.

I paid Invoice + $500 - $1806 (Factory to dealer
incentive for versatility package). Also at the time, cars
direct price was origionally listed at approx $1300 above
invoice for the car (on the web site with the same
options as above), but if you called them and placed
an order, they would also throw in the versatility
incentive after they confirmed the car you wanted met
the requirements, resulting in a cars direct net price of
invoice + 1300 - 1806, which is approximately
invoice -$500. (This is something I did to confirm cars
direct would give you the versatility incentive, because
it was not listed or factored in to the price). I didn't
end up using cars direct, but I certainly used the
information in negotating my deal (which was $806
lower than the cars direct price).

I also wanted some accessories and the dealer
agreed to order them for me at cost. I immediately
placed the order for the accessories and have received
everything as promised.

Now the versatility incentive was going to expire at
June 30th. I haven't read anything whether it will be
extended or not by the factory.

For pricing experience on the XC90, Edmunds.com
has a whole thread of pricing info for people to compare
what is a good deal or not, and what people are
paying in a particular area. I reccomend that your
friend begin his research there.

[rf_Engr]

More info.

Three weeks ago when I bought my car, details in last reply,
there were over 100 new 2004 XC90's in inventory across the
Volvo Bay Area dealerships. There are around 8 dealerships
or so in the SJ to SF surrounding area. Inventory was certainly
not scarce.

[Mr. P]

Interesting that your ID is "engineer", as the guy is an engineer in Hayward, CA on the East Bay. He ended up buying a MDX, sadly. He was looking for some kind of competitive lease term or whatever, and indicated to me that he just couldn't swing the deal. Poor wife, now she gets a MDX.

All I'm doing is repeating what the guy told me the other day when we were going after a 70-million dollar project.

Mr. P

[superbeagle]

In the D.C. area, xc90's are selling at invoice less any incentives.

[Mr. P]

I've checked myself, and I found I could lease a XC90 for ONE DOLLAR more than a MDX. I don't know what the guy was talking about, dang, and I'm entrusting a lot of engineering to this guy.

Anyway, check my posts, I'm going to post something to make up for this one
regards, Mr. P

[rf_Engr]

There is a $2000 dealer cash incentive for leases. You can
do this instead of the versatility incentive which is $1806.
I don't know much about leases though, I would presume
that they would try to get some of that back in the
nitty gritty details of the contract. I know there are
alot of ways they can hide these things in lease contracts.

For my deal, I did cash only and no trade in.

By the way, just because a person is an "engineer" doesn't
mean they make good decisions in all areas. I know plenty
of colleagues that make some pretty dumb decisions in
areas that aren't related to their degree. :) I am quite
sure there are plenty of areas in which I do the same
thing :) I know my wife would agree!

[superbeagle]

For those of you interested, here is what I just was able to negotiate in the D.C. area:

Here are the details:


2.5T AWD Ice White
Premium Package
Climate Package
Versatility Package
Reverse Warning
BiXeon Lights
Wood Steering
Cargo Net


Price was invoice ($41,092) plus ($250) ad fee minus $2000 dealer cash for a sale price of $39,342. Note that I couldn't get the free versatility ($1806) because I opted instead for the $2000 dealer cash.


SUV is fresh off the Baltimore port (arrived from Sweden on June 28).

Money factor is .0021, residual is 54% and MSRP is $44095. Lease is 36 months, 15,000 miles a year.


Monthly lease (through Chase) is $587.78 plus tax ($1972), tags/title/registration ($161) plus assignment fee ($795) for total of $654.50.


Walked out of the dealership only having to make the first month's payment of $654.50.


Dealership also bought my 2001 XC70 from VFNA so I didn't have to worry about disposition fees or Wear and Tear fees.


Very smooth transaction.

[Mr. P]

Good price, but somehow I don't think they would do that on a purchase, due to being able to get a piece of you on the lease, and the car back at the end.

Mr. P

[superbeagle]

Agreed that the $2000 dealer cash was not available if I didn't take the lease. However, had I purchased the 2.5T, it would have been invoice minus $1556 ($1806 free versatility package credit minus the $250 ad fee). Also helps negotiate in the D.C. area where you have 7 dealers to choose from (Don Beyer Volvo, Fairfax Volvo, Martens Volvo, DarCars, Herb Gordon Volvo, Anapolis Volvo, Koons Volvo).