Hello Hackrs,
This’ll be my first time leasing a vehicle. Could you please help evaluate if it’s a good deal?
I’ve been offered 13.5% off MSRP (no separate lease bonus), plus $2000 rebates (Costco, and A-Plan) at base rate (0.00031%) and 56% residual for 36m/10k lease. LH score 9.5 years
Despite high ROI, I’m not going for MSDs to remain flexible in case I have to transfer the lease (moderate likelihood couple of years from now).
Thanks in advance!
There’s probably some lease cash baked into that discount. What’s the msrp/due at signing/monthly and where are you (taxes)?
Also I don’t think that Volvo financial allows lease transfers at all
Seattle zip has $1500 in lease cash. I assume the rest of WA is the same.
A plan is not supposed to be applicable over about 6% pre-incentive, so it’s worth diving in to the offer to see what is actually going on.
And no transfers through Volvo
Thanks; didn’t know the Volvo doesn’t allow lease transfers. The dealer is a bit resistant to MSDs beyond $1k, but guess I’ll go push then.
The dealer has clubbed the rebates as $2000, but not shown them specifically as Costco / A-plan. The lease bonus is built in the 13.5% discount is what I was told.
With everything capitalized and no down payment, the monthly payment is $575 pre tax on a $62k vehicle, which I think is good.
With a buy rate of .00031, you should be limited to 6 MSDs max. It should be of no consequence to the dealer if you do 2 or 6
Agreed. I will reason out in person. Would this be a good deal otherwise?
It looks like you’re roughly 10.5% pre-incentive, which is a solid deal.
The problem is that with a-plan, it’s a deal that they shouldn’t be able to actually do. At that discount, a-plan shouldn’t be applicable and as such, the $2000 rebate isn’t valid.
I have seen this play out in three ways. You’re rolling the dice as to which one.
The fact that they’re playing games with the MSDs give me pause as to what else they’re going to play games over.
The dealer can also just eat the charge back for $750 after rolling the dice. If they don’t get audited, he gets 2% a-plan bonus and no charge back.
Figured that falls under the first bullet
Well, a-plan under invoice will always get funded. Then the question is whether they get charged back or not. Just ask aronchi.
What was suggested above and I would highly recommend getting this cleared before you head into the dealership. The push back on MSDs and the potential for the deal to fall through, with the above mentioned concerns, smells a little fishy.
Just ask for your full MSDs, unless it’s a cash flow thing, then pay what you’re comfortable for MSDs, and get a finalized quote before you go to the dealership.
And yes, I think $575/mo is a solid deal! Nice work.
Thanks everyone for your feedback. This makes me better informed. I’ll circle back with where I land. Happy holidays!
Here’s the update (better late than never). I leased the car in last week of December.
I missed the Inscription trim by 15 mins; another buyer said yes before I did (got distracted looking at XC90). Ended up picking a T6 Momentum in Pine Grey with climate, premium, and advanced packages, plus Harmon Kardon, bigger wheels, running boards etc. This car had most features I wanted in Inscription (ok, I do miss park assist). The dealer was ready to do max MSDs, but I decided not to, and instead invest that money elsewhere. Dealer’s MF and residual for Inscription trim matched with Edmunds; they showed me the MF and residual table to verify the numbers for T6 Momentum.
All in all, I leased the car for ~$540 per month (pre tax) for 36/10, and $0 DAS. The dealer honored the discounts (13.5% off MSRP, Costco, and A-Plan). This might not be the best deal in the country, but this is WA. No other dealer (Volvo / BMW / Audi) was ready to share any details besides superficially high quotes. Most importantly, I am happy with the car!
I’ve driven 1,600 miles, couple of lease payments have been made, and I received my Bonus Drive check today. 
Thanks once again for your help!
Congrats! Post pics in the shared deals or trophy garage!