I am looking for strategy/info to negotiate a more aggressive discount on a $56k Volvo V60 CC that has been RDR punched, but has <100 miles on ODO. More detail below.
Long time lurker and first time poster. I am in the market for a V60 CC, and knowing that deals are somewhat tough to come by have been focusing in on punched loaners. I am targeting a tri-state area of MD/PA/NJ (car will be registered in MD). Preferred configuration is $56,xxx, and early email solicitations have produced some decent dealer responses.
I have read this thread 2020 Volvo V60 Cross Country. It appears a discount in the range of 15-18% before incentive and rebates is reasonable. Does this hold true even when punched cars have no signifcant mileage?
I am trying to better understand how Volvo compensates its dealers for RDR loaner/demo cars over time to value an appropriate discount. I believe there is an initial payment (holdback), then a second payment at time (6 mos?) or mileage?
Thanks for the input. I will post a deal check after I narrow down the field a bit
@HersheySweet Thanks for the reply and link. I read Quentin’s @nyclife post and that demo is actually what got me more interested in the Volvo. We are shopping the deal as much as shopping the car (within certain parameters set by the wife). So I am keeping his deal in mind as we go through the process.
I probably should have said ‘three state area’ instead of tri-state. Sorry about the confusion. I am aware of the demarcation of the regions - travelling 50 miles north to PA/NJ/DE/NYC gets me higher incentives.
But doesn’t this info from Bruce seem to contradict this point? 2020 Volvo V60 Cross Country
He indicates an total discount of >20% on a punched low mile. I acknowledge this was a brokered transaction, but it does appear to indicate there is more discounting available the longer the car sits on the lot from its punch date.
One really rare deal is a rare deal. I got my loaner at 4000 miles under contract, so 4K free miles for me, and less than 2k on the odometer. This stuff happens, and it shouldn’t be expected or counted on.
I was told by a Volvo dealer earlier today that the dealer takes a $0.20 per mile hit from VFS on loaners. It’s up to them how they handle that with the customer as the mileage doesn’t affect the RV directly like BMW.
As for the compensation from Volvo to dealership for providing a demo, I’d love to know those numbers as well. One of the dealers locally advertises Loaner “rebates” of varying amounts. In the disclaimer, it says the car must qualify for the “rebate”. Once we got into paperwork, the “rebate” is never specifically designated and just gets lumped into the total discount of the sales price.
I’ll keep an eye on this thread and update if I gain additional insights as I continue my quest for an XC90.
You may be right but here is the direct quote from a Volvo dealer earlier today.
"At the moment, this is the only loaner available to receive the loaner rebate.
There is no change in residual for the loaner vehicles vs non loaner. The XC90 currently has just under 6,000 Miles. So there is an extra .20/mile charge from VCFS amounting to $1,200.00 charged to us as the dealer. I have not passed that charge to you as you can see in the adj cap cost. "
While it’s a “victimless crime”, remember that because of the Federal OD tampering laws, falsifying an odometer statement and the title on a new car deal is almost always a state crime (IANAL and it varies by state as I understand). So asking a dealer to do this is VERY different than both of you looking the other way if it results in better incentives from Volvo.
In short: don’t ask them or expect them to do this. There are still 1 or 2 Boy Scouts in the car business.
That is very bizarre. Every Volvo loaner lease I have seen has had a reduction in the residual value as a result of the mileage. I don’t know how they’re managing to do this differently here unless they’re under reporting the mileage on the contract. I’m not an expert though, although the idea that in some loaner calculations the RV would change and others it wouldn’t is odd to me.