I will do full crystal balls and tell you that a 299 Stelvio, 255 Qx60, 225 Rav4 XLE is a far better deal than your XC60. even an X3 can be had for cheaper than your Xc60. However, it is your money, so if you’re happy, that’s great.
I think some may have gotten carried away. Thanks for posting your deal. The more info we have the better.
You are correct, that with a Volvo lease, MSDs do not have the impact on the monthly payment that using the same amount of funds as a down payment. I think the issue/concern here is risk aversion. The overwhelming recommendation here is to never put money down on a lease, because if your vehicle is totaled the day you drive it off the lot, you are potentially out all that money. If you have a lump of cash, there are two ways to use it - keep it in a savings account and use it to payoff the slightly higher monthly payment on the lease or if the manufacturer allows, use it for fully refundable multiple security deposits. In either case, if your vehicle is totaled early on in the lease, you are not out the 4K - as it or its balance would be in the savings account or it would be refunded to you in the MSD situation.
Putting money down as a down payment is basically all risk and no reward. By putting it down up front, all your saving is the interest on the cap cost reduction. With an equivalent apr of about 1.5% (your lease here appears to be at about .00059 MF), the interest savings is about a cup of coffee a year. You’re risking $4k to save $10. That’s all risk and no reward.
On the other hand, with MSDs, you’re not risking $4k to save $1200. That’s all reward and no risk. Now, I understand cash flow has to be kept in mind, but you’d be better off taking a loan out at 10% to put towards your MSDs than you would be to put the money towards a cap cost reduction.
We should have the right info. ie putting a large downpayment is just not worth it, any which way you slice it … No matter how you may “feel” about the smaller monthly …
Thank you everyone besides the one person. I do understand about money down having a potential risk. MSD also is not risk free.
As far as other vehicles being cheaper? If I want to eat filet, I eat filet. If I want to eat chicken, i eat chicken.
We wanted the Volvo, not a out dated QX60 or a RAV 4 lmao. X3 is not bad but I dont think the deal in Florida for a X3 is 1% or less.
Thank you for visiting and for anyone who has questions about this deal please feel free to PM me
What risk are you associating with MSDs? That Volvo FS is going to go insolvent?
I get that $0 down is better than anything down and that in this case, the MSD’s would have been a better option. But if your lease comes with GAP insurance (as I believe Volvo’s do), doesn’t this mitigate that risk?
No, it does not. Once you put that money down up front, it’s gone. GAP insurance basically allows you to walk away from the lease, should the market value be less than your current buy out (as it generally is in a lease).
Don’t forget, that they added “protection package” and “marked up fee of 995” to his cap cost. So once, the car is totaled, these are gone. The 2k down he put just get eaten up. The ACV on a totaled XC60 will be far less than the loan payoff. So the GAP will just cover the loan payoff and the poor sap is left with NADA. So essentially, if he totals the XC60 driving off the lot, he is out 4k…
We are not trying to pick on OP … just that he made the incorrect statement - better put down 2k as CCR rather than MSD since CCR gets me a lower payment. Whilst true, this is not cheapest and least risky way to lease.
Did I say putting money down is “better” or is your head stuck somewhere?
I’m pretty sure I said in my case putting money up front helped where we wanted to be in payments.
Did I say putting money down was not a risk?
I dont understand why you have such a hard on. To much viagra last night?
Who buys a car with intentions of totally it?
It’s a Volvo, it shouldn’t even allow itself to become in a accident.
You do what YOU think is best for you and I’ll do what’s best for me.
At the end of the day I have a badass 2018 XC60 at a payment I’m happy with.
With a heavy discount and additional packages I elected to buy. Omg the dealer made $300 back on acquisition fee after discounting $8k on a new model
Gotcha. I’m just trying to understand the specifics of it for my next lease (I didn’t have any extra fees and stuff, but I did put 2k down after negotiating the $0 down monthly payment). So truly its the extra stuff added on that makes it even worse. Protection package and acquisition fee add nothing to the ACV, but you still have to pay for it up front. Since GAP only covers the difference between whats owed and what insurance pays, this will be lost as you’ve already paid it.
Maybe this is better for another thread, but on those one-pay leases I’ve seen around here, would you lose the entirety of your “one-pay” in a total loss accident off the lot?
I’m not an expert on one-pay leases, but my understanding is that they’re treated slightly differently.
So true. And I even know where vhooloo’s head has been stuck recently.
Funny you should say that. I had a very successful “thrust month” …
Yes indeed - there is a slightly higher risk for a one-pay lease as opposed to a monthly but as stated, one-pay lease is treated differently than a CCR. A CCR is money paid to dealer. A one-pay is a prepaid lease installment
I find this thread very entertaining
OK, now you are just trolling. You very well know that even Volvos can be stolen or totaled.
I think the point here is that is forum is not just about you. We are having a discussion for the benefit of all the people who read this thread in the future so that they know how to make the best deal and mitigate against risks. The deal that you posted (that works for you because you have the payment you wanted) is a great example of what not to do for the reasons discussed.
I will give the OP that he got a good sales price. But an epic hackr like hn308 or senwia or cheapdad would have converted the good deal into an epic one. By using msd. Also looks like 750 extra is now available on Aplan and Sams discount.
Therefore, by the powers of crystal balls, I predict 300 xc60 lease deals will become common next month.