Thank you again. This deal does not require a security deposit. What is the typical security deposit? Also, I keep a vehicle immaculate. How hard is the security deposit to get back?
Search, there are many topics explaining how MSDs work. But in short - they reduce your MF (interest rate) that you pay on the lease and are unrelated to the carâs condition on return (not connected to wear/tear issues). You get them in full at the lease end.
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That makes sense. I thought the security deposit was tied to carâs condition at lease end (wear and tear). I have researched and glad to know.
From what I gather this is a great lease deal.
I met with the dealer last night. He stated Volvo does not charge a security deposit and no way for him to add one or multiple. He seemed honest and was confused why I asked. I even showed him the msd that is listed on Volvoâs website. Should I push the issue?
Thank you for your help and advice. Is there a way I can help you or donate money to you for your help?
UPDATE - The dealer (manager) told me Volvo does not do security deposits with their lease therefore could not purchase any.
You can donate to the site, which helps defray some of the cost of keeping it running.
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Some dealers donât know about MSDs, some donât want to do it. Volvo does not require it, but this option exists to reduce MF. Just tell them that their finance manager needs to do it and thatâs what you want to do.
Like @max_g said - just donate to the site, thanks.
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From my dealer. He makes a good point. Whatâa your take on this?
I am not sure the security deposit is a good way to go. Currently you are at $548.03 with putting $3,542 due at signing.
The way the Security deposit works is by reducing the lease money factor .00005 by taking the total monthly pament with tax included and rounding it up to the next highest $50 increment. You are able to put up to 10 security deposits making the highest you can reduce .00050. If I remove the money down, it brings your payment to $660.35. Using this scenario, I would need to round this up to $700 lets say you wanted to use 5 security deposits, that is a total of $3,500 that I would be collecting as a security deposit to reduce your Lease Factor by .00025. That is going to take your previous payment of $660.35 and bring it down to $635.88. This is of course with using no additional money down just using all money to the security deposit.
This would be good if the Lease factor was high but it is already low at .00085, or if you do have the expendable income to do the security deposit and apply additional money down but and this is completely my personal opinion from looking at the numbers. I am not sure doing the security deposit with the lease factor already being so lowwould be worth tieing up that capital for it to make sense.
I hope this helped and I will work the lease any way you like me to, just let me know the direction you would like to have it worked.
Calculate the rate of return on your MSDs. Lowering the interest payment is still lowering the interest. It doesnât matter it is low.
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Can you run the calculator both ways? How much of the $3k DAS is down payment and how much is TTL? With $0 down your principal would increase, but should not be $100 more/ month.You canât only look at the monthly payment, what about your total out of packet? If you put $51xxx down, your monthly would be $0. Could you PM me the offer, I am in the market for anxc90 as well, would like to see if I could duplicate the deal in NY/PA.thx
Again - with 10 MSDs ($6K, not $7k as dealer said) and 0 down you will be at $591/mo and will get it all back at the end of lease vs. $548/mo with $3k down (which you will never see after lease end). If you do not pay $3k down and do 0 down and no MSDs, your payment would be around $637/mo, not $660/mo as dealer said. So, 10 MSDs save you about $45/mo.
I wonât even go into losing your $3K down payment if your car is totaled.
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Even though Volvoâs MSD program doesnt get you as much bang for your buck as some other OEMs, it is still a better value than a CCR, no matter what the original MF is.
Take 6 grand, put in the bank. Do you get 45 dollars a month, for 36 months, back as profit?
Do the same with MSDâs, and your return is 9%, or $45 per month.
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Focus on the total cost of the lease, not the monthly payment. See how much lower it is with MSD
Update: I have my figures and looking to complete this deal tonight. I cannot get the calculator to match the figures, but here are the figures from the dealer.
2018 Volvo XC90 T6 AWD Momentum
36 month/10,000 miles per year
MSRP - $61,435.00
Selling Price - $51,293.50
55% Residual = $33,789.25
Money Factor - .00085 (with 5 MSDâs = .00060) / (with 10 MSDâs = .00035)
Capped Fees: Total - $1,341.00
Acquisition Fee - $695
Dealer/Doc Fee - $599
Tag Fee - $47
Total Taxes - $1,545.80
Security Deposit - 5 MSDâs - $3,250
Drive off - $3,869.20
Cash collected - $661
Working cash - $661
Cash surplus - (-$3,208.20)
Next pymt date - 08/25/2018
Base monthly pymt - $619.20
For 10 MSDâs - Security Deposit = $6,500
Drive off - $7,097.21
Cash collected - $661
Working cash - $661
Cash surplus - (-$6,436.21)
Next pymt date - 08/25/2018
Base monthly pymt - $597.21
What do you all think? Good or bad deal? I cannot get the calulator to match.
Thank you in advance.
I am new here and try to look for XC90 lease deal too, it looks good deal with 10 MSDs. Donât know you tax rate, but assuming 7.5%, calculator gives close monthly payment. I couldnât figure out how to roll doc fees into monthly, but if you manually do that, the calculator number is pretty close to dealerâs number.
I did it. I feel like I got a great deal. I asked the sale mgr if they made money and he hinted no, but they are running a special and in growth mode and wanting to sell cars in hopes for to build up their service dept. I would love to name the sales manager and dealership because this was the best car purchase ever!
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