So I’ve gotten this offer which seems pretty terrible. It’s an S60 T5 Inscription. Online price is $38,000. After I asked for a price sheet they sent me this. They marked it up $4,250 and then discounted it back down, thereby pocketing the lease incentive. And they added the destination charge in even though it’s in the MSRP. I called them out on both things and the Manager insists “that’s how Volvo handles leases”. This is a Loaner car.
Pretty terrible, right? Or am I really missing something here?
@AnthonyGT Looks like you are jumping between a MB C300 and Vol S60 - its good to be flexible in this market. But, it also pays to do your homework. When the Manager says “That’s how Volvo handles leases” that is his way of saying “You don’t know jack - give me your money”. Be prepared, brother. No salesperson is going to give you a good deal - you need to know one when you see it and turn a bad one into a good one. If you put in the work you can do this.
Last time when you posted your MB 300 deal we talked about identifying/understanding 2 critical lease variables: 1. Pre-incentive discount and 2. know the MF in your deal and the buy rate MF. In your post above did you call out these variables so we could help you? Help us help you.
Not everyone has the time to understand what makes for a good MB 300 or Vol S60 demo deal. If you don’t have the time, work with a broker here. They can help you find a car spec’ed to your preference and get you a fair price. Today’s market favors the dealer and they will take your lunch money if you let them.
3 other Hackrs posted comments already and they are telling you the same thing:
Do you know why this deal is terrible? Hint - start by calculating your pre-incentive discount.
@Ursus is a Volvo deal expert, take all his advice.
Do you know why it’s one of the worst? Hint - start by calculating your pre-incentive discount. And, your dealer is using salesman hocus pocus to steal more of your money.
Straight truth brother - do your homework or go find a broker. We can help, but don’t just throw numbers in a post time after time. Show us you are trying, we will help.
I was pretty confident it was a terrible deal, but in case I was missing something I thought I would post it. And I figured the post would help others with another datapoint.
My mistake here was not getting to the fine print of the online pricing. I expected the lease cash to be taken of the sales price. The additional destination charge was an obvious scam charge.
The MF buy rate was .0002. They used this rate in the quote.
I’ll keep learning and try to find a good deal. Thanks!
Good to see you are on top of the buy rate MF. Always include the MF - and any markup - in your “Deal Check” post. We won’t know if you have a good deal unless you share MF. It’s also a good idea to indicate you verified the buy rate on edmunds.com.
The #1 deal variable you should have a firm grasp on is the pre-incentive discount. As part of your homework look at past Volvo demo deal posts to see what pre-incentive others have achieved/targeted. Do NOT skip this step.
Volvo uses a direct-to-dealer incentive pricing strategy. This means Volvo gives incentives directly to its dealers to lower your offer price. Whenever you get a price from a Volvo dealer it includes the Volvo-to-Dealer incentive (the $4,250 in your quote above is in the “Wow” price). You need to break your TOTAL discount into 2 pieces: 1. Dealer Cash and 2. Dealer Discount aka Pre-Incentive Discount. Please do NOT conflate TOTAL discount and PRE-INCENTIVE discount - they are NOT the same.
In your deal the dealer is giving you an 11.4% PRE-incentive discount. That figure is low for a Volvo demo. The key goal of your homework is to determine a good offer price to target. Your offer price = Dealer Cash PLUS Pre-Incentive Discount.
When you post your next deal, here is how I suggest you call Hackr attention to your pre-incentive discount.
$48,790 MSRP
-$38,000 “WOW” Price
=$10,790
-$ 995 Destination Charge Double Dip = Slimey
=$ 9,795 Total Discount from Koons
