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?
You believe wrong.
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This is the entire email (so it’s not in parts) from the General Sales Manager at a Volvo dealership.
"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. "
I’m saying exactly what Aronchi’s said in his post that you agreed with. I’m not sure what you disagree with in my statement.
Look at Aronchi’s LH calculators and they reflect the EXACT description given to me by the Volvo dealer and what I’ve suggested above.
I can certainly be mistaken but all evidence supports my conclusion.
Read to what I replied to again. I repeat again: RV is adjusted for mileage on the contract for loaners. No idea what your dealer is doing, but the contract is with VCFS (which owns the car), so I’d think they want to know the adjusted RV for a loaner car.
Aronchi just simplified it by halving incentives to adjust for mileage instead of adjusting RV
Read what Aronchi wrote and what the dealer wrote. I’m not saying that VCFS doesn’t know the mileage. I’m saying they don’t charge the customer for it. They charge the dealer. Both Aronchi and the local dealer said as much. Show me proof that contradicts the actual evidence I’ve provided.
“Note full loaners have 6k miles and an extra $3k in incentives (1500 when adjusting for mileage). Half loaners have 3k miles and an extra $1500 in incentives (750 when adjusting for mileage).”
Is this what you’re referring to?
Do you understand what I tried to say?
I’m referring to that quote and Aronchi’s calculators as well. NONE of them show a hit to RV nor is a hit for mileage reflected. The hit (if you call it that) is simply removed subtracted from the incentive for the demo. But this is not reflected anywhere in the paperwork. All you see is the reduction in sales price along with the other discounts into a net discount reflected in the sales price.
I don’t interpret his quote in that way at all. There is a hit, due to the RV change, that cancels out some of the incentives. His calculators just simplify it, just as his calculators don’t show the incentives itemized.
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I do understand. Can you show me a contract on a Volvo demo that reflects that deduction? If it does work that way, why doesn’t the calculator for Volvo operate the same way as BMW?
I could but I won’t. I looked at my contract this morning though.
LH calculator has no connection with how Volvo software calculates leases.
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Of the three of us, Ursus is the only one that’s actually leased a demo volvo
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Then he should have NO problem providing a contract proving his point.
“I can but I won’t.” is ridiculous. I’m happy to change my mind and admit I’m wrong the moment I see contradicting evidence (other than opinion) to support it.
Then prove everyone wrong and go sign for the XC90 you hijacked this thread to ask about. I think everyone has done their best to answer your questions, and it’s clear you’ve made up your mind.
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Relax, I have “Trusted” badge for a reason 
p.s. you can find my XC90 loaner deal in “Share Deals”, if interested
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45 posts in and there’s STILL not a picture of a sexy chunky Swedish wagon!? Pfft.
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The guy is trying to find a fully loaded V60 CC demo/loaner with a big discount and in NE only, so yeah. Good luck with that.
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