Original Post:
I’m looking at 2020 Volvo XC90’s and the dealer has a couple of appealing demo/loaner options. On their website, they list demo rebates ranging from $2,000 to $6,000. I’m unsure of if this is an actual rebate or if it’s just a discount being offered. Either way, what’s the additional incentive I should look for on a demo over a traditional?
Are there other factors that effect Volvo demos i.e. BMW?
Rebates listed don’t mean much. They sometimes list buy and lease rebates on the same car. There aren’t 6k in rebates.
A good discount on a brand new volvo is over 11% dealer discount prior to incentives. So for a loaner you should push for a higher dealer discount than that. But residual will be effected by the miles the car has. Some dealers can do better deals on new inventory than loaners.
I’ll second this because Volvo does let you lease cars above the 5,000 mile threshold. Unless there’s a MAJOR discount, the residual hit is generally not worth it, and a new car will almost certainly have a lower monthly, all other things equal (but obviously with a lower discount).
I’ve been offered a 14.5% discount (post incentives) on a 2020 XC90 T6 (6 Passenger) MOM loaner with almost 6K miles. MF and RV are correct according to Edmunds. They are “eating” the .20 per mile hit from VFS for the demo miles without changing the RV. Fees are in line. I’m getting an additional $500 rebate on top of 14.5% for Loyalty. I saw similar discounts achieved on new XC90 T5 MOM’s this month in the forums.
Post incentive discount is irrelevant. Pre-incentive discount is what you want to care about. On a demo with 6k miles, you should be doing better than 14.5% pre incentives, much less post.
I’m very confused, however, by the residual value side of this. Are they not putting the correct mileage on the lease?
I am under the impression that they are reporting accurate mileage. No discussions otherwise have taken place. They are simply stating that the mileage hit is $0.20 per mile charged to the dealer and doesnt effect the RV. This seems to mirror what Aronchi’s dealer listing as well. I’ll add link to that post.
Well, with all that said in the other thread regarding RV adjustments, you’re at 10% pre-incentive. Id be pushing for a little more on a brand new one, much less a demo.
@mllcb42, I agree with the pre-incentive discount part of the comment. I would typically agree with your conclusion regarding a much deeper discount on demos as well due to the hit to RV for mileage. In the case of Volvo though, it seems like there is no direct hit to the RV but instead a $ cost to the dealer for mileage. If it doesnt effect the RV like BMW for example, the discount doesnt have to compensate for the lower residual in addition to the not quite brand new factor.
I’m trying to get an idea of what that additional should be…pre-incentive ;)?
Well, let’s look at it this way: the RV knock down that normally would be there is about $1200. Thats basically 2%. On a 6k mile demo, normally people would be saying shoot for 16-18% pre-incentive. Pull that 2% off, and you’re at 14-16% pre-incentive.
Now az isn’t as competitive of a market and it is a 6 seater vs 7, which haven’t seem to have leased quite as well
I think you’re sitting post-incentive where you should be sitting pre-incentive.
The best 2020 XC90 deals I’ve seen on the forums are 14% or 15% post-incentive. Aronchio has a $63K full demo T6 (6 seat) MOM listed with a $9,500 post-incentive discount. I haven’t seen any deals beating 15% post-incentives ( or 11% pre) on 2020 XC90’s. Am I missing some closed deals or offers?
