That’s what some dealers do - show higher than actual mileage on the contract to qualify for the loaner cash. But then you pay more for the mileage penalty and get more miles to drive.
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I’m okay with that, more miles = yellow stone trip with my dad this summer! And it was still a really good deal, even with the mileage penalty, kudos, didn’t know dealers did that.
Would be extra $400 in your case.
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.
This is not in line with what I have seen on demo Volvo leases.
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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. "
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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.
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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.
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Aronchis explains it the same way as the dealer did to me in the above email. I agree its unusual but it seems to be accurate.
Hmm, how bizarre. This is definitely out of what how I thought things were done, but perhaps it’s a semantics detail on the contract that was lost to me.
He’s right. Volvo does not adjust RV %. Now, if a loaner does not qualify for loaner cash then dealers do not have to adjust for mileage in lieu of passing that cash to a customer. Dealers can sell loaners that did not meet requirements as “new” with mileage at the lower discount (-$3k), but 1-2% higher than normal. That’s my understanding.
@jthacker48 - you can search @Benedetto’s posts. He explained how demo/loaner cash works. I was told it is 3 months/3,500 miles (I think) and 6 months/6,000 miles.
Edit: to clarify - RV amount does get adjusted, but not the %
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Ok, this didn’t clarify. I’m more confused now.
Is the residual value on a loaner in the contract the base RV minus $.20 per mile or is the RV on the contract the base RV and then$.20 per mile is just added to the cap cost?
This is the data I am driving towards.
@Ursus indicated there is a time / mileage component
I am attempting to understand if this is time AND mileage vs time OR mileage. For example, if a low mileage punched car does not meet the 3.5k/6k threshold, but has sat for 6 mos…does the demo/loan cash support from Volvo get better (and therefore the improve the possible retail discount)
RV in $$ amount is adjusted for mileage in the contract. I guess what I’m saying is that dealers enter mileage and software adjusts RV amount in $$. I suggested before to add mileage penalty to the sale price for ease of adjusting LH calculator.
But I’m getting more and more confused myself 
It’s either or - can time out and be under miles.
Can be pulled out early if at/over miles.
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There are also $2500 3 month loaners Volvo has been pushing and a few year end punch cars with $1000 extra floating around.
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Ok, this didn’t clarify. I’m more confused now.
Is the residual value on a loaner in the contract the base RV minus $.20 per mile or is the RV on the contract the base RV and then$.20 per mile is just added to the cap cost?
I believe it’s neither of those. I believe the deduction for mileage all takes place behind the scenes between the dealer and VFS and is NOT reflected anywhere on the contract between the leasee and the dealer. I believe the RV remains the same as non-demo vehicles on the contract. I should preface all of this with “only on Volvo demos”. My BMW does deduct the mileage hit from the RV.
Here is a screenshot of the backend software and how the lease was being calculated. As you can see, it’s showing no RV hit for mileage despite having 6,000 actual miles.
Bendetto, I want to make sure I understand as well. I believe you’re referring to the incentive given to the dealership by Volvo OEM for demos. In addition to that, I believe there is also a mileage hit from VFS for mileage on demos. I believe it’s $0.20 per mile allocated as a cost to the dealer. We are trying to figure out if that hit reflects on the contract as an RV hit or if it’s on the backend between dealer and VFS.
It has to show up on your lease contract. It can either occur as an actual reduction in the residual value (I agree with everyone that it isn’t and never was a “percentage” reduction in RV, but I thought it was a $ value reduction in RV and showed up in the RV column on the contract) or it is rolled in to the cap cost (be it through a separate line item; #5 on the backened software shown above, or passed on through the dealer discount).
I find it even odder that the backend software you’re showing has a column specifically for this but it isn’t being populated.
I don’t think it was loaded correctly.
This is an estimate, not a signed deal right?