There seems to be a lot of variation in how it is handled, so I don’t think you’re going to get a definitive answer as far as volvo goes.
@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.
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MD is not in tri-state and is in a different Volvo region with different incentives.
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And if you’re in that general area, why would you skip Union Park in Delaware? My father got his C70 there way back when and shipped it to SC.
As mentioned previously, punched cars with that few miles aren’t getting much in the way of manufacturer support — I’ve heard from several dealers they might take $1000 off which is 1-2%.
I think you’ll be lucky to get 10% off pre-incentive, but that’s just my guess. Good luck.
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.
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But doesn’t this info from Bruce seem to contradict this point? 2020 Volvo V60 Cross Country - #25 by Bruce_Smith
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.
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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)