Hi all! I am looking at leasing a 2020 Volvo XC40 T4 Momentum in TX - it’s a loaner/demo car with leather seats, moonroof, Nav system. MSRP is 42,520 and the current sales price is 37,880. The car currently has 1,400 miles on it. I am looking at the LH calculator and for what I could put down, the monthly price should be $200 less than what they currently offered. I’ve looked at other dealerships and haven’t had much luck with them being very flexible. Any assistance would be appreciated as I’m new to this:-)
The XC40 is a great car, but I would consider reading the “Leasing 101” articles before you keep reaching out to dealers. One thing that you will see is to put as little down as possible ($0 is better) since that money will most likely not get recuperated if the vehicle is considered a total loss by the insurance for a little while after you sign the deal. Instead, put that into MSDs (refundable), which can lower the Money Factor (MF) and provide Monthly Payment savings over the course of the lease.
A current sales price of $37880 probably includes the Volvo allowance. You are already at a bare minimum discount for a new car, not to mention a loaner. Also, check Edmunds for buy rate MF and RV. If you are a Costco member, you get an extra $1,250 off (this is dependent on region, so look it up on the Costco Auto program’s website).
Oh, yes, I did read some of the Leasing 101 articles - and saw in one of the videos that it’s best not to put anything down. I had never heard of a MSD - thank you for that suggestion!
Can you expand on what you put into the calculator?
Take @volvo1’s advice here to heart. You shouldn’t be talking to dealers until you already know what the car should lease for and what makes for a good deal. If you’re talking to dealers before you have this squared away, you’re putting yourself at a huge disadvantage.
Remember, talking to dealers about pricing is for finding someone that will do your deal, not for determining what a car should cost.
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Thank you!
Here are the updated numbers since the $1800 credit was already included in the price.