Wanted to get a few opinions on a quote I was given today after getting a very low quote from a dealer that yesterday tried to lease me a car with a grinding noise coming from the rear (and pretending they didn’t hear it - that quote was $499 + tax with $2500 towards inceptions, 10 MSDs - 36/15 on a $61,520 msrp but the car was clearly broken).
XC90 T6 Momentum with Advance Package
MSRP: $61,080 Selling Price: $50,570 (backed into this number using the pre-tax payment i was given - includes the $2k dealer cash and $1k Costco cash
Monthly Payment: $576 tax in
**Cash Due at Signing: $8,000 (including $5,500 for MSDs (per sales manager but calculator is telling me $6,250 for MSDs)
MSD: $5,500 (10)
Fees: $2,500 DAS for inceptions (including $999 dealer fee & first month)
Thank you for the quick response! I figured the MSDs were wrong - I think he got confused when he didn’t realize it was for 15k per year instead of the 12k he had initially calculated.
The extra 500 for the MSD is fine. Don’t want to regret getting one now if they are giving massive discounts next month, but also don’t want to miss out on a color/option combo I actually want because I wanted to save a few dollars a month.
As for the R-Design, I have an infant and want full “leather” seats (as nice as the other seats look). The inscription with the advanced package has a much higher selling price even with the 4k vs 2k incentive, and the RV is lower.
I believe you are correct. @Ursus would know better than I do, because I have only leased Volvo in NY. As far as I know, it’s rounded up to the nearest $50, and each MSD is equal to one payment. So a $576 payment would be $6,000 for max MSDs… however, if the $576 includes tax, the MSD is likely calculated pre-tax. What county are you in? Now that Broward, Palm Beach, and Dade all have tax of 7%, while most of the state is 6%, I can still work backwards from 6% and say that the payment is less than $550 pre-tax (and luckily Florida taxes the payment and makes the calculation easy).
Oh wait, you said 7%…what dealer is this? Gunther, Weston, Deel, North Miami, Schumacher?
I know South Florida dealers well because my parents and I moved down there when I was young, and they’re still in Broward.
I would contact Dyer & Dyer in GA and see what they can do for you. Just a 999 processing fee will blow my mind. Welcome to Florida for me. I am on my 7th Volvo but I get them in NC
I think if $576 includes tax (rolled in) then total should be 6k. Otherwise, like you said - $5,500. In any case, it’s possible that the dealer made a mistake, which will be corrected.
Assuming that is the sale price, that would be below invoice, wouldn’t it? The calculator shows 12% off MSRP before the $3k incentives are used. 16.9% off MSRP with incentives.
There’s no need to roll in taxes. If your payment is $300, you pay 6% or 7% based on the county, so it’s $318 or $321. You can’t cap something that’s essentially not based on depreciation directly, but rather depreciation after all capped costs, rent charge, etc. If your payment is $400, you pay $424 or $428, and so on. If your payment is $367…you get the point.
I didn’t say anything about “need.” Maybe I should have specified “can’t.” You can’t calculate the taxes until you have the payment based on all the other factors. Meaning, you can’t cap the taxes, charge interest on them, etc., and if you did cap them, then all you’re doing is adding to the cap cost and will have to pay taxes on them again.
Ok, let me make it simple: can you have true 0 drive offs or only first month DAS in FL? If the answer is “yes”, then you capped taxes, among other things.
Not talking about calculation of taxes nor whether it makes sense to cap them.
This may seem like a stupid question, but is there any pattern you have seen in years past as to how Volvo offers lease cash?
I have a deal in place currently for a car that has an MSRP of 62,630 - same terms as the initial post except it would be $2,750 down instead of $2,500, DAS $8,750 ($6k MSDs) and the payment would be $575 tax in.
Being that we are only 1 week away from the end of the month, is it worth waiting until June to see if additional lease cash is offered? Costco is good through next month so I’m not worried about that $1,000 incentive. Is there any chance that Volvo has less that $2,000 in lease cash for the T6 momentums next month?
I said it a million times here - forget about Costco unless it gives you $3,000 cash OR unless your dealer is willing to go below invoice, in this case at least 8.5% (10% target - 1.6% Costco $1K).
No one knows about incentives, but Volvo always has them and raise them on the cars they need to move. They increased incentives on XC60 T6 this month and I’m pretty sure they will drop them back next month. XC90 T6 MOM had $3K at the end of last year and I haven’t seen them higher.
