New to the site and have been lurking and looking for deals on a new lease. I’m aware that the deal provided via email isn’t great, however my biggest question would be negotiating the discount off MSRP for said car. My question would be what is considered a “reasonable %” discount for loaner vehicles when it comes to leasing. There are 6.5K miles currently on the vehicle. Sales rep sent this to me after they had already closed so i was unable to ask him for the MF and RV of the vehicle.
Original MSRP of $49795 and is listed at $43588
Lease price of $42588
12K miles per year
Drive offs of $1286
Payment is $583 including tax
Be sure to work out what the incentives, mf, and rv should be before talking to a dealer. Based on the monthly here… I’m guessing their sales price has every incentive already included and the mf is marked up
Original MSRP: $49795
Listed Price : $43588
Lease price : $42588
MF : .00067
RV : 55%
36 mo / 12k
Drive offs of $1286
Payment is $583 including tax
Lease cash via volvos website : $1750
When i asked for a breakdown of the discount and incentives his response was the following:
“As far as the incentives, they are figured into the pricing already being discounted the way it is. I hope that helps”
With all that being said i should still be able to negotiate 15-20% off lease msrp for sale price correct? (If the dealer wants to play ball)
@beasly @mllcb42 is wisely guiding you to consider a 15% pre-incentive discount in today’s dealer-friendly market. From your post, it appears you maybe interpreting his comment as a total MSRP discount. He is not suggesting you target a 15% total discount off your MSRP. If I am mistaken, ignore my comment .
Unsure - welcome to the world of leasing. You can wrap your head around leasing, you are doing the homework.
I find Volvo deals a little tricky - for the very reason cited by your dealer: “… the incentives … are figured into the [price] already being discounted.”
Volvo dealers tend to reflect a few things in their selling price offer. One step you need to nail is to properly calculate your pre-incentive discount: the discount from your dealer BEFORE any incentives coming to you from Volvo (not the dealer). This is the 15% discount target @mllcb42 is guiding you to consider.
Your $7,207 total discount is coming from 2 places. Volvo is giving an incentive to its dealers and a discount is coming out of the dealer’s pocket. You indicate your Volvo-to-dealer incentive is $1,750 that means your dealer is giving you a discount of $5,457.
$49,795 MSRP
$42,588 Selling Price
$ 7,207 Total Discount
A 15% pre-incentive discount suggest you end up at no more than a $40,575 offer/selling price. Which translates to a 18.5% total discount from MSRP.
Demo Caution: Where is your dealer reflecting the RV penalty for the demo miles on the car? Make sure you know how all the variables come together in your deal. I do not know Volvo demo deals well, but I believe I read on here where a dealer will reflect the demo RV adjustment in a revised RV or higher selling price. Stay on your toes. I would like to learn how your dealer handles RV adjustment. Please share.
