Does anyone have any ideas as to what a good target sale price before lease incentives would be for a demo/loaner 2017 XC60 T5 Inscription FWD? Seems to be a base model with a listed MSRP of $42,695. Been on the lot since August 2016.
Also, with the new models coming out and dropping residuals, is this even a good car to target?
Thanks to everyone involved in the forums, been researching the last week or so and have seen a ton of great information. Appreciate any help!
After doing some more research and a brief inquiry to the dealer, their offer for this particular vehicle is as follows. This was my third attempt to get them to actually breakdown the costs associated, and this is how far I have gotten.
2017 Volvo XC60 T5 Inscription FWD
Demo/Loaner with 12,700 miles
I was initially looking for a 24/10k lease and my calculations/offer are showing as follows if it’s possible to incorporate all of the lease incentives on a demo/loaner car. In scouring the other threads, I have seen different feedback regarding the application of incentives to demo cars.
Sale Price: $32,428 (25% off MSRP ($8,573 + $1,944) 20% msrp + mileage adjustment)
$3,550 Volvo Allowance
$475 24 month lease credit
$2050 Lease Bonus
Residual: 51.47% (Originally 56%, adjusted 4.53% due to mileage)
Money Factor: .00001
Monthly payments: $225 after tax
First time leaser here and trying to figure out this maze, does any of this seem reasonable or do I need to lay off the pipe?
Just judging from initial e-mail exchanges, they aren’t very forthcoming with information at all. I am thinking it is a bit of a stretch, but just wanting to check my thought process. Will continue the discussions and post back once I hear more. Before I send in my offer to them, I wanted to try to get some clarification as to whether or not they could even apply lease incentives to a demo car.
Some previous forum posts were indicating that once the car is set to demo, they take the manufacturer incentives at that time.
So, sent my breakdown to the dealer on Friday with no response. Decided to drop in the dealership today to talk through the numbers and here is what I came out with.
The Internet Manager I was dealing with through e-mail was not in the office today, and I talked with his assistant manager and another Sales Manager. They were unable to understand my calculations…
Essentially, they were giving me a sales price of $36,875 (10% off MSRP) and then adding the $6,075 in incentives to come to a Net Cap Cost of $30,800 with a residual value of $23,049 (came out to 53.66% after mileage adjustment). After looking at the structure sheet on the computer, the payment was going to come out to $447/mth after taxes … a full $40 higher than I was quoted online from the Internet Manager.
The Sales Manager indicated that was the deal that there was nothing else they could do on the sales price because they were already losing ~5k on the car… I shook their hands and walked out. May attempt to speak with the Internet Manager this week when he comes back because I am not sure that the other folks I dealt with had any idea what was going on.
Another interesting thing that came up was the fact that they are not allowed to lease a vehicle with >10k miles. Their loophole for this was to indicate that the car had less than 10k miles, quote me on a 24/10k lease, but give me 12k miles per year to make up for the 3,000 mile difference so that when I turned the car back in there wouldn’t be a mileage penalty.
if I had to guess, the internet sales manager was including said incentives in the price quote he offered you and the numbers were double counted in the original quote.
It was something I struggled with communicating with sales people when I was looking for my lease. I tried to make clear that I’m negotiating a single number and that’s the sale price of the car on the quote sheet.
of course then when I actually come in they mark up the MF (sort of felt it was a middle finger to me, but that’s a different story, lesson, get all the numbers if they say they can get the sale price number)
Welp, that doesn’t sound good at all. I believe there was some additional money that they were required to pay as part of the overage, but I am not 100%. That was just my understanding of what was being communicated by the Sales Manager, she may have not even really knew what she was saying. Definitely don’t want any part of that.
The MF was .00001. As part of the mileage overage, I believe there was an additional $2,000 being added to the Cap Cost to get to a Net Cap of $32,800.
If I plug those numbers in the calculator along with a residual of 55% (I am guessing this is the standard RV for 24/12k lease), I get $449 after tax. I didn’t get a copy of the structure sheet, but this was my recollection of what was being entered into the computer.
Don’t think I am going to exhaust any additional time on this as it just doesn’t seem close to worth it. Especially when I saw a lease for a brand new XC60 on the forums with MSRP of $45k being grabbed for $375+tax.