Hi All - been following for a while now and find this to be a great source for information and learning. Thanks to all who contribute!
Below is the initial lease offer from a Volvo dealership in the SF bay area, whats peoples verdict?
I think there should be some more room to negotiate here, but from my forum search I didn’t find much for 2018 XC90, so not sure if there really is…
Lease Offer:
XC90 T5 AWD Momentum, 3rd row, Convenience package, heated front seats & steering wheel with leather seats
MSRP: 55,830
Sale Price: 51,830
Residual: 56%
MF:0.00123
36 months
10k miles
3k down = 698 inc tax/mth
4k down = 669 inc tax/mth
Don’t really want to put down more than 3k, I feel that is a high out of pocket amount.
I expressed i want to put down MSD, but the sales guy kept brushing it off, saying in his experience MSD’s don’t help much and I am better keeping my money. This made me hold back and think maybe i should visit another dealer… They have a similarly equipped XC90 on manager special lease for 544+tax/mth but with 5,700 down - that is more than i want to put down!
I am looking for a larger car than my current Q5 to accommodate 2 infant car seats and all the stuff that goes along with 2 infants! I inquired about a 2018 QX60, but was getting quoted $600 inc tax/mth with $4,500 down - felt that was too high.
Not a good deal at all. Almost 800 a month when you figure in the 3,000 down payment. There are volvo experts that can help you here better than me. I will say, he’s avoiding MSDs for a reason. Your interest rate is about 3% and you can reduce that significantly with MSD’s. Your 3k down payment would be much better used that way instead of applying as CCR.
Don’t forget the A Plan which will give you another 3k off. I had to join Sam’s Club but well worth it obviously. Think there is even a groupon that offers a discount on the membership.
You need to negotiate a larger discount off MSRP. Expand your radius to find a hungry dealer. The MF is marked up, it should be .00099 on AWD model. Most importantly, 24 months is the sweet spot on this lease for March as long as you only pay tax on the monthly. 24/12 residual is 67%.
Hi guys, newbie here. I was hoping to get some feedback on a deal.
XC90 T5 MOM AWD
39 mos / 12K miles per year
MSRP $56230
$1294 Drive off (DMV fees + 1st mo payment)
$590 monthly payments which includes 8.75% sales tax
Good deal or getting ripped off? I’m in Northern California.
You want to shoot for 10% off MSRP before the $2000 Volvo allowance is applied, make sure they aren’t marking up the MF and are charging 695 for acquisition fee. Also, 24/12 RV is ~67%, see if payments improve compared to 39 months.
Multiple security deposits- pay a REFUNDABLE security deposit in exchange for lowering the money factor/interest rate
CCR - Capital cost reduction (down payment on a lease), generally frowned upon for a lease unless the deal is structured to fund it out of rebates.
Bring that closer to sub 600 and nothing down, and you’re in a ballpark.
Ours was $56k msrp and about a 560 payment, and last 2 months of bmw lease paid. Screwed up and forgot to do MSDs too. Was in FL though.
Just curious, I’ve been reading a lot about MSDs. Aren’t you better off putting your money in the equities market and get a better return on investment? ie - if you can make 4-7% in equities, aren’t you better off doing that rather than putting down MSDs?
