Volvo XC90 Buying Guide: Pricing, Deals, and Market Trends
If you’re in the market for a Volvo XC90, there’s a mix of good and bad news. By the time you finish this guide, you’ll have a clear understanding of how to negotiate the best deal, whether leasing or buying is the right choice, and how the XC90 stacks up against its competitors.
Why the Volvo XC90?
The Volvo XC90 has been a strong contender in the luxury SUV market, with a steady increase in sales over the years. Initially selling around 10,000 units annually, the model saw a significant rise to 30,000-35,000 units following its redesign. In 2024, it achieved its highest sales ever—just under 40,000 units. A key factor driving this success is the plug-in hybrid (T8) model, largely thanks to the $7,500 federal EV lease credit, which may not be available for much longer.
Despite strong sales, the XC90 still trails behind its competitors. BMW and Mercedes-Benz sell around 70,000 X5 and GLE models, respectively, while Lexus dominates with a staggering 120,000 RX units sold. However, the XC90 stands out in areas like safety, back-seat protection, and inventory availability.
Inventory & Negotiation Strategy
One major advantage of shopping for an XC90 right now is its high inventory levels. While Lexus and BMW have around 15-20 days of supply, Volvo dealers have 50-60 days, making it easier to negotiate a better deal. Of the 6,600 XC90s available, about two-thirds are gas-powered (B6 models), and one-third are plug-in hybrids (T8 models).
Target Discounts
A good strategy is to aim for a 7-9% discount off MSRP. Here’s an example using a B6 Plus Bright Theme with an MSRP of $71,295:
8% off MSRP: $66,171
Additional Volvo incentives: $1,000 (70th anniversary discount) + $1,500 purchase allowance
Final target price: $63,671 for gas models, $62,671 for plug-in hybrids (which have a $2,000 purchase allowance)
Incentives & Financing Deals
Volvo is offering a 3.99% APR for up to 72 months, which is competitive in today’s market. While the lease incentives are slightly lower than purchase incentives, they are still attractive.
Leasing vs. Buying
For lease customers, here’s what the numbers look like based on 8% off MSRP and paying fees upfront:
B6 Gas Model: $822/month (36 months, 12,000 miles/year)
T8 Plug-In Hybrid: $975/month (36 months, 12,000 miles/year)
The total lease cost for 3 years would be around $33,573, including all fees and taxes. Given the high depreciation rate (57.5% over five years), leasing appears to be the smarter financial move compared to purchasing new.
Resale & Depreciation Outlook
Volvo XC90s tend to depreciate heavily, with a projected 53-62% drop in value over five years. A $71,000 new XC90 could be worth only $30,682 in five years. Compared to competitors like Lexus (which retains value better), this makes leasing or buying a used XC90 a smarter option.
For reference, 2020 XC90 T6 models with under 60,000 miles are currently listing for around $29,000, with well-maintained models available for as low as $25,000.
Final Thoughts: What’s the Best Move?
Lease it if you want the newest model without the risk of poor resale value.
Buy used if you want to save money and avoid the steep depreciation of a new XC90.
Negotiate aggressively, as Volvo dealers have high inventory levels, giving you leverage.
