Not right now, but in a few hours. Advertising does vary, and I’m pretty sure the commission is on base MSRP.
FWIW I wasn’t getting much off any loaner V90CC, I just gave up after repeated 800+ quotes.
Cool, thanks. Yes, commission is on MSRP, 2% of $58,925 on this car.
A-Plan is calculated on invoice (including advertising) minus incentives minus A-Plan incentive. I’ve seen advertising range from $0 to $750. On the OP’s V90 T5CC it’s $200, assuming the car was invoiced originally to the dealer he’s talking to. If his dealer has $0 advertising and got the car on trade, I could see the A-Plan price being $49,662, as they probably netted it out of their cost in the trade because the car they gave the other dealer had no advertising.
The commission is 2% of base MSRP, not $58,925. Let me know if need proof on that. It’s really not relevant to a buyer/lessee, anyway.
That doesn’t make sense then. The a-plan price is not calculated, it is set by Volvo and, according to you, it would be different based on regional advertisement fees ($0 to $750) but it is not, as far as I know. If you login into a-plan, you will see the same a-plan selling price on the same car. A-plan price on V90CC T5 is the same in NY and CA, for example. Do I miss something here?
Not sure what you mean by “base” MSRP, but the dealer will not lose $3k in any case, as you stated, but 2% of MSRP.
If you have the “proof”, post it by any means. You are the one with the first hand knowledge.
It is relevant since you mentioned advertisement and the dealer’s 3k commission loss in the context of the current a-plan deal.
We covered the advertising issue before in this thread on 8/6:
If one dealer pays $500 more for a car than another, how is it fair to them to sell at the same price?
Base MSRP is before destination and options.
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I see what’s happening. They’re advertising the car for $49,662. I’m certain that’s intended to be on a purchase, not a lease. The purchase incentive is $4,000 higher than the lease incentive. The $49,662 isn’t the A-Plan lease price, it’s just super close. The A-Plan lease price should be $49,862 based on the invoice, but it wasn’t invoiced to them. The dealer that has the car has $250 advertising, only $50 more. I’m not sure how a dealer would handle that and I doubt Volvo cares.
The incentives will update on Nov 1st, so maybe the $2,750 lease incentive will get better, or maybe it’ll get worse. You’ll need a dealer willing to dig fairly deep to make a loaner worthwhile to overcome the loss of the $3,000 A-Plan incentive that they’ll lose on a loaner, plus they will have to overcome the lower residual on a loaner that will be reduced by $0.20/mile.
You should able to buy the car for $9,750 below invoice through A-Plan, which would be about $45,862.
So, if the base MSRP is $54,000 (for example) and with options/freight it is $58,925 then dealer gets $1,080 instead of $1,178? Ok, but I still don’t understand why you said the dealer will lose $3,000 (that would be $150,000 base MSRP). I guess you were thinking about 3k a-plan customer cash? Did you mean that Volvo claws it back plus dealer loses 2% a-plan commission?
The A-plan is what the pdf says, yes. Yet, it is safe to use 6% off in calculations to get to the a-plan price without that pdf. Correct?
I now remember seeing the a-plan breakdown with advertisement fee and destination, thanks! Makes sense.
This is what I said earlier, so we are in agreement here, I guess.
Agree on the $1,080 commission based on your example vs $1,178.
The dealer (and the customer) loses the $3,000 A-Plan incentive if the customer gets a loaner- that has nothing to do with the 2% commission, other than they both come together or not at all. If a dealer sells a loaner, they’ve got either the $1,500 or $2,100 loaner incentive to work with plus whatever amount the wrote the car down for being a loaner. The 2% commission is just gravy. Essentially, the dealer is selling or leasing the car for invoice + 2% on an A-Plan deal.
The base A-Plan price is invoice including the advertising, so the 6% amount is only accurate with an invoice that has no advertising. Most advertising is around $500, so most base A-Plan prices are more like 5% off MSRP. When you look at the Volvo invoice, there will be an A-Plan amount shown on it which is identical to the invoice amount, which includes the advertising.
Yes- we agree on the $49,662 number. It’s almost coincidental with what should be the correct amount, $49,862, which is invoice (base A-Plan) minus $5,750.
Can you please explain why leasing through A-Plan is a favor for a dealer?
I have a quote sheet from dealer for 2018 S90 Inscription with $19000 discount, I told them that I have an A-Plan PIN number before requesting the quote. A-Plan showed total $10266 savings from MSRP for lease. How can you explain that?
Curious, why block out so much information from the sheet?
What much info are you talking about? I blurred payments only and VIN for dealer competition 
Because (at least on S90s and V90s) the selling price the dealer gets is higher than they would have otherwise taken, plus they get a 2% bonus. On those cars, it’s a win-win, with the customer getting a bigger discount than they would have gotten (plus a 5th year of the On Call app) otherwise.
I can’t tell what’s going on with your S90 quote from what you provided. Is $63,940 the MSRP, or is it a pumped up number? The A-Plan lease incentives should total $8,250 below invoice (assuming the lease incentive for the dealer you’re working with is $1,500- maybe it’s higher). The $10,266 looks like the discount on a base S90 T6 Inscription with no options and isn’t reduced for advertising.
Go to Volvo’s website, build and price a 2018 S90 T6 Inscription, go to summary, go to calculate payments and see what the incentives are for a lease. Maybe it’s more than $5,250 (the website won’t show the $3,000 A-Plan incentive).
If that car is a demo or loaner, that would explain a discount as large as $19,000. If it is, the A-Plan incentive is not available.
Or you never know what kind of mistake a dealer might make and wind up eating.
That was a brand new S90 with several options (BW sound, 20" wheels, HUD, metallic paint). Even with 19K discount the payment was in upper 500s for 39/12K all in, I expected $100 less.
I know that, but we are talking about new car here and you said:
So my question was:
Or you mistakenly wrote $3,000 instead of $1,080 (2% commission)?
The dealer will lose both the $3,000 A-Plan incentive and the 2% commission if they discount the car below A-Plan, which is invoice minus incentives minus A-Plan incentive, which is $3,000 in this case. I didn’t mistakenly write anything.
Well, you said they will lose $3,000 A-Plan incentive and nothing about also losing their 2% commission. But thanks for clarifying that they will lose both.
What has the 2% commission got to do with the payment or anything? The dealer only gets it if they do an A-Plan deal. I need to specify a dealer loses the 2% if they lose the $3,000 A-Plan incentive???