First-time looking into leasing so please be gentle!
2018 Volvo XC60 T5 Inscription (with some packages & options)
MSRP: $51,390
Cap Cost: ~$47425 (reverse-engineered based on the monthly payment they gave me)
Months: 39
Annual Mileage: 12,000
MF: 0.00046
Residual: 54%
Acquisition Fee: 695.00 (probably going to roll this into the lease)
Registration: 350.00
Taxes: 1,864.00 (probably going to roll this into the lease)
1st Month Payment: 539
Total Due at Delivery: 3,448
Zip Code: 11378
Sales Tax Rate: 8.875%
Leasehackr Score: 8.2
It seems like an okay deal to me but I could be absolutely wrong. If I roll the acquisition fee & taxes into the lease, it would bring the payments up to $606/mo with $956 due at delivery. Iām also thinking that the selling price may have a bit more wiggle room which would also bring down the taxes a tad.
Appreciate any thoughts that you hackrs may have!
Edit: Had to reduce the RV by 1% for 39mo instead of 36 but then that brings down the Cap Cost of the car to ~$47,425.
XC60 is still a fairly new model so dealer discounts will be limited. If you can wait until late Summer early Fall (when the 2019s start rolling in) you can probably do a lot better than this. Also keep an eye on the ex-loaner cars, there are already a few 2018 loaners in my area available for leasingā¦
Completely agree but I am on a bit of a time crunch for a new car. Without knowing exactly how much I could save by waiting, Iām looking for the best deal that I can get within the next month or so.
Not a bad idea but I should clarify that I do own a car at the moment. The urgency is because my better half wants to upgrade to a nice SUV (sheās leaning heavily towards Volvo) before she is due in April. I probably shouldāve started looking into leasing towards the end of 2017 as it seems there were slightly more incentives at the time. I was hoping there would be better incentives for Presidentās Day.
I am in a similar situation, our first one is due in July and I am shopping for a mid-size SUV. Already took my wife out for some test drives (XC60, V90CC, Subaru Outback, Acura MDX, Kia Sorento, Mazda CX-9) and went by myself to test a few more options (Lexus RX, Toyota Highlander). We both really liked the XC60 and it is high up on our list but I would recommend checking out couple of other options. Well-equipped RX350 can be leased cheaper than the XC60 quote you posted if your better half is dead set on getting a luxury SUV. If non-luxury brands are ok then the CX-9 is a very impressive SUV for the money and would be cheaper stillā¦
An RX that is similarly equipped will be about the same amount at this time. You have a monthly payment of $539 (assuming it includes tax). If you lease an Rx350 with MSRP of around $54 and get 10% of it, it will be around the same price.
Yes but that RX lease would be with zero due at signing, the XC60 quote is with $3,448 due at signing. Almost a $100 difference in monthly payment over 36 monthsā¦
Sheās definitely wanting a luxury SUV. We also looked into buying a CPO car from various brands but couldnāt find anything to her liking. She likes that the outer aesthetics of the XC60 donāt look drastically different year over year and holds up better over time.
Lexus RX350 - Went for a test drive and she thought it was just okay.
Lexus NX300 - She was concerned it would be too small.
Acura MDX - She thinks it is too big.
Acura RDX - With the 2019 redesign coming up, she is concerned that a 2018 or older model looks too old, relatively.
Infiniti, MB, BMW and Audi are all out for similar or various other reasons.
Iām okay with a nice Honda or Toyota myself but as they say - happy wife, happy life. The only reason Iām looking into leasing is because she very much likes the Volvo more than the rest and thereās no telling how reliable the redesigned 2018 model is just yet.
I agree that no money down is better based on what I have researched but other than a special promotion where they waive the first monthās payment, are there any true no money down leases?
You can structure the deal any way you like. Just think of the lease ads as a suggestion. It is the same money, paid either up front or over the lease term.
@wallabingbong, Iām sure you have heard this before, but buying an SUV/minivan isnāt a requirement with 1 or 2 children. It really doesnāt become a huge issue until you have multiple children and have to haul their friends around at the same time. (And then 3 rows is more important than SUV vs minivan)
The exception would be if your current vehicle cannot accommodate a rear facing child seat.
Disclaimer: [I have 3 children, we bought our 1st 3 row vehicle 6 months before my 2nd was born and have had at least 1 3 row vehicle since then]
Completely agree - I think that we would be able to manage just fine with our current car ('08 Toyota Corolla). The extra space and new safety features would be nice, though.
Blockquote. She likes that the outer aesthetics of the XC60 donāt look drastically different year over year and holds up better over time.
Blockquote
The XC60 just had a major redesign, so yes it wonāt change drastically most likely by the time your lease is up, but it is also brand new as folks have mentioned. The problem is everyoneās wife loves it a quick look online and some dealers are marking over MSRP by a couple hundred & true care has it at 1500 off MSRP as a nationwide average. Very similar to the Q5 when it came out.
On reliability, the XC60 is built on a scalable platform that is used for S90 V90 XC90. Itās reliable.
Leasehackr wise -
MDX, people canāt get enough of them right now. Demo/loaners and high volume dealerships with old ones on the lot.
RDX, possible opportunity when the 19ās come out for 18ās. 17ās lost lease support supposedly this month.
Whoever said you donāt need an SUV was right for one kid even 2 (think s90), but there are always other factors like being high up whilst driving.
This appears to be a demo/loan unit with 7k on it and its less than a 10% dealer reduction 2018 XC60 this is slightly more than your 50k one % wise and could be used as leverage.
Here one that is 8% off. Bonus its the T6 with 316 hp vs t5 250. 8% XC 60
Also, it looks like you are dealing with them in terms of monthly instead of the purchase price. Change the narrative politely.
Now you have 3 places to get quotes from that you can round robin against each other. I believe there are presidents day incentives also.
Iāve read that the turbocharged engines on the new XC60 havenāt quite passed the test of time just yet.
The other cars that you mentioned were considered but are out for various reasons.
Being seated high up while driving is definitely a factor in why she wants a SUV.
How would I go about using cars from CA and SC as leverage for negotiations with dealers in the northeast (Iām located in NYC)?
I understand that dealing with them based on the monthly payment is mostly a marketing gimmick but as long we both agree on the total upfront costs, MSRP, RV and MF, wouldnāt it be okay to deal using adjusted cap cost or monthly payment since either one remains as the last variable to arrive at the other?
Also not aware of any Presidentās Day incentives on the XC60 other than a lease offer which doesnāt seem all that great.
Oh NYC, lemme make this easy for you. Contact @nyclife heās a broker with an excellent track record on these forums. There are a couple other guys also, but he can help you and simplify your life and based on your questions I think heāll be worth the price. Heās not going to get you a āhackrā deal on the XC60 but he handles everything and will, in all likelihood, find you the best tri-state price
I reached out to him yesterday but other than one round of back and forth, I have yet to hear back (probably just busy). His services are a bit pricier now ($100 deposit + $300 service fee) but I still think that it could be worth it.
It really doesnāt become a huge issue until you have multiple children and have to haul their friends around at the same time. (And then 3 rows is more important than SUV vs minivan)