2019 Volvo XC90 T6 Momentum R-Design

I’ve never leased a vehicle before so I wanted to post this prior to signing to get some feedback.

2019 Volvo XC90 T6 Momentum R-Design
Advanced package, 22 in wheels, Polestar, Air Suspension

The calculator doesn’t allow you to enter a specific amount due at signing. The only options are zero due at signing or paying the taxes, fees, and first month’s payment, so I’m just going with the latter.

**MSRP: $70,535
**Selling Price: $60,536
**Monthly Payment: $644
**Cash Due at Signing: $3834 (First month payment: $644, Down payment: $0, Government and dealer fees: $1,086, Total Tax: $2,104)
**MSD:10
**Incentives:?

**36 months
**12,000 miles/yr
**MF: 0.00112 (0.00062 after MSDs x 10)
**RV: 57%
**Region: Georgia - tax is on total sum of lease payments
**Leasehackr Score: 9

I am not planning on paying $3834 the day of signing so I wanted some advice. What is reasonable amount to put down in addition to MSDs? First month’s payment only? First month + taxes?

Also, is the 1% rule based on MSRP or the negotiated price?

Thanks in advance! I’m a newbie.

Dont worry about the 1% rule. That’s just a rough guide which you’re within. This is a good deal.

If you’re doing MSDs, I’d pay those and your first payment up front.

With the new interest rate, it’s effectively 1.49%, so I’d roll as much as you can into the payment itself, as you’ll make more than that in a money market account.

2 Likes

Is that the monthly payment before or after MSDs? Either way, I agree with @Bostoncarconcierge that this is a good deal especially bc: 1) Volvo can be hard to lease bc of weak incentives/dealer discount and 2) GA charges tax on the entire sale price (although I vaguely remember hearing that they may have just changed that law to just lease payments?)

Also, again, the 1% applies loosely in some cases. This would be $730 (on a $70.5k car) all rolled in which is close enough for this kind of car.

1 Like

Not to hijack this thread, but I think my question is relevant to the OP. Why does the leasehackr score go down if you just shift payments from upfront into the monthly? I can understand an element is related to the incremental interest needed to be paid over time, but I wouldn’t think that has a material impact esp if the MF is super low.

UPDATE : Georgia passed a revision of its tax law in 2017 that changes the way TAVT is calculated for leased vehicles. House Bill 340 which is effective as of January 1, 2018 taxes only the sum of lease payments, not the entire value of the vehicle as before — a much more fair tax for leasing consumers in Georgia.

So does this mean I select the third option in the taxes section of the lease calculator?

And I believe it’s monthly payment after MSDs. These numbers are coming straight from the lease calculator on this site.

Sorry I completely forgot to add the $995 destination charge. Here are the updated numbers to reflect the increased amount due at signing, although it didn’t change my leasehackr score. Should I still only play the first month’s payment + 10 MSDs on day of signing?
Thanks again everyone!

**MSRP: $70,535
**Selling Price: $60,536
**Monthly Payment: $644
**Cash Due at Signing: $4,443 (First month payment: $644, Down payment: $0, Government and dealer fees: $1,685, Total Tax: $2,114)
**MSD:10
**Incentives:?

**36 months
**12,000 miles/yr
**MF: 0.00112 (0.00062 after MSDs x 10)
**RV: 57%
**Region: Georgia - tax is on total sum of lease payments
**Leasehackr Score: 9

From what I’ve understood and played with, the 39 month option on Volvo is very attractive compared to the 36. On every model I remember looking it up on, it’s basically -1% residual for 3 more months.

Solid deal, phenomenal car.

As little as possible due at signing w a post MSD interest rate like that.

MSDs and first only

Looks like a good deal, and you’re getting good advice… max MSDs and first payment down.

Yes it is -1% for the additional 3 months. I don’t know how depreciation rates are calculated, so I wasn’t sure if 39 was better than 36.

Anyone can feel free to correct me, but think of it like this: With 36 months with a 57% residual value, you’re paying for 43% of the car. On a monthly basis, that’s 1.19444% per month (43% / 36 months).

If you’re doing 39 months, with a 56% residual value, you’re paying 44% of the car. On a monthly basis, that’s 1.1282% per month (44% / 39 months).

Up to you which you want, there’s a ~5.5% delta between those two figures. You can change the figures in the calculator and see the difference on monthly payments/total lease cost and ask yourself what it’s worth to you.

Edit: This hit me when I was taking a walk earlier… it’s probably even more elegant to say something like “on the 39 month lease, you buy the 37th month and get the 38th and 39th free.”

1 Like