2018 Volvo S90 T5 AWD Momentum Lease Help

Ask the Hackrs
1

Hello all! I am leasing my first vehicle and am interested to get some thoughts whether my goal here is realistic with the information I have available so far. I am looking at a 2018 Volvo S90 T5 AWD Momentum with an MSRP of $58,005. The November numbers in my region are:

.00031 MF
53% residual
$2000 Volvo Allowance
$5200 lease bonus

This vehicle is listed as a demo/loaner and I have been unable to contact the dealership (closed on Sundays in IN) to confirm mileage, which I understand would likely make a huge difference. IF mileage is low enough to still qualify for incentives, would shooting for under $400/mo, zero drive-off on a 36/10 be achievable? I think this would be the calculator numbers I would be looking at in order to get it done, although anybody that can show me where I’m wrong would be greatly appreciated!

Thanks for your feedback!

2

Expect the residual to be adjusted for mileage.

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3

Yessir. Is this the same adjustment I’ve seen elsewhere on the forums where it has to be under 5k to qualify for manufacturer incentives, and the RV reduction will be $.25 per mile?

4

No, BMW does the 5k. Volvo doesn’t from my experience…looking at one now. There are some pros here on the residual adjustment, best wait for them to chime in.

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5

Great, thank you. Am I correct that ~15-20% MSRP reduction isn’t totally unreasonable for a demo/loaner?

6

I suspect that car has an invoice of about $55K, so assuming they got the $3K loaner incentive (there is a $1,500 program), you’d need a dealer discount of about $3,500 to get to a selling price of $48,500. That sounds reasonable. The mileage adjustment is $0.20/mile, so if it has 5,000 miles drop the residual by $1K = $29,743 = an adjusted RV of 51.28%.

You’re assuming the dealer will write the lease at the buy rate and not mark up the acquisition fee- maybe.

The Holiday Sales Event (which should be in effect in IN) will waive your 1st payment, so checking the zero drive off box will capitalize a payment unnecessarily. I would capitalize the license and doc fees and that should get you close to a zero drive off- or just pay them, since the 1st payment will be rebated.

I think the $7,200 you input should be in the untaxed incentive box, or just net it out of the selling price.

No mileage restriction on incentives. If the car has over 7,500 miles on it, find something else. The RV will drop by 20% before the mileage adjustment is even applied.

Consider putting in 6 MSDs to buy the MF down to 0.00001. Each deposit will be equal to the monthly payment rounded up to the next $50 increment. For example, a $380 payment would have each deposit be $400, for a total of $2,400.

If you qualify for A-Plan, it’s a different ballgame, since you’ll get another $3K in incentives, but it’s limited to invoice minus incentives, so on that car you’re talking about (assuming it was new), your price would be about $55,000 - $7,200 - $3,000 = $44,800 and you wouldn’t have to adjust the RV.

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7

I’m guessing you’re looking in Indianapolis. Good luck… Tom Wood doesn’t negotiate much because they don’t have any local competition. I had a salesman there tell me last week that their cars lease at $800-$1400. When that’s the starting point, I’m not even going to waste my time.

I recommend casting your net up to Chicago if you’re willing to travel. More dealers mean much better pricing. I had a great experience with Volvo of Lisle. Negotiated everything via email, then drove up there to sign papers and pick my XC90 up. Completely painless.

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That’s not what I want to hear! Lol. Were you looking at a demo or brand new? And was there a specific salesperson you were working with that I can try to avoid? Any help would be much appreciated.

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I have been dealing with a lot salesman, though as others suggest on here you may want to go directly to the internet sales manager. I had to test drive to see how the car drove, so I couldn’t just start negotiating online. I’ve looked at demos, used, and new there. They tried selling me on a 2017 S90 loaner over the summer (yes, a 2017 in the summer of 2018, with no lease support available) that was only discounted about 15%. Unfortunately it’s just difficult to get a luxury car in Indianapolis, because there’s only one dealer of each brand (or, if there are two, they have the same owner), and they’d rather sell less cars for higher profit than sell high volume at good prices.

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Fortunately I am about an hour east of Indianapolis which brings in Cincinnati, Dayton, Ft. Wayne, Columbus OH, Dublin OH, etc. I may give Tom Wood a quick check and steer toward the other dealers. Thank you for your input.

11

Wow were you right. They were willing to play ball a little bit but my instincts yelled to me to turn and run. Salesperson was exactly what you think of when you think of slimy car salesman. Glad that most I have encountered other places haven’t been that way.

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Its a loaner, so Aplan cant be applied

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No, it is not. Just like @mani_is_kool said - it’s a loaner. Just in case you will say it was “in general”:

:slightly_smiling_face:
Edit: you did say “assuming it was new”, but why assume if it is not?

14

Feel free to interpret what I said the way you want, but it was for a new car, hence the new ballgame and the non-adjustment to the RV. I’m crystal clear on no A-Plan on demos/loaners and you know that.

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You keep mentioning the a-plan at every opportunity, and quite often out of context on a particular loaner deals. It wasn’t a generic S90 question, so why even breaking down the loaner’s numbers with the a-plan as if it was a new car? Valid suggestion would’ve been just to look for a new S90, if OP had a-plan, IMO. Otherwise, it is just confusing and your valuable information gets buried in unrelated to the particular case things. Peace.

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I mention A-Plan when it can make a dramatic difference in the selling price of a car. Why does that annoy you? You want what’s best for the folks on this forum, right?

I was clear about if a car was new in my post- try reading it again. The first step is if the OP qualifies.

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FWIW I took it as if I qualify for A-Plan, it would maybe make sense to look for new instead of loaner (new ballgame being new car vs old ballgame being loaner car). “So on that car you’re talking about (assuming it was new)” I took to mean that year/make/model/trim I was talking about, not necessarily the exact vehicle.

Seems like there might be priors here that I don’t want to get in the middle of, but I appreciate everyone’s input.

18

Hello all. I’m looking to take advantage of November Volvo lease incentives in my area, with my current plan to try to get the lowest price possible on a 2018 S60 T5 Dynamic (8k lease incentives). I have gotten a few dealers to drop the sale price to their invoice price before taking incentives into account, which makes the monthly payment just clear the 1% rule (MSRP 40k, monthly payment on 36/10 of $395 inc. tax, 0 DAS). However, with lease incentives this sweet and 2019 S60’s en route, would it be reasonable to hope for a dealer to go below (several thousand below?) invoice price in order to clear inventory, or am I being greedy?

Any input on how good this deal is and how to get through this barrier in negotiations would be greatly appreciated!

19

Keep it in one thread, and search - there where many topics on how to find Volvo incentives. 3.7 will also repeat it for you, I’m sure…

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It wasn’t clear to at least 2 somewhat experienced people on the first reading. But what do we know.