2021 XC90 T8 Inscription deal, ehh it was okay!

It was alright of a deal, maybe borderline bad. But, what I did was I traded in my current end of the lease XC90 to call it a good deal, I know some of you will not agree :slight_smile:
My thought process was that I got a good deal 3 years back and I’m enjoying some fruits of that in terms of good equity.
So, I had 6k in equity and dealer gave 3k after tax (I know they don’t have to pay the tax, but they wouldn’t budge on this and I was happy to not do any paperwork or DMV stuff by myself).

Not much to celebrate for me, I was just happy I was able to get a trim I liked in this market at monthly payment I was comfortable with.

Year, Make, Model, and Trim: 2021 XC90 T8 Inscription
MSRP: $73,395
Selling Price: $63,962
Monthly Payment: $796 w/tax ($700 with trade in credit applied as cap cost reduction)
Drive-Off Amount: $3000
Months: 36
Annual Mileage: 10,000
MF: .00120
Residual: 55%
Leasehackr Score:
Leasehackr Calculator Link: CALCULATOR | LEASEHACKR

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Congratulations and enjoy your XC90

Why would they give you $3k “equity” when they could get the car at your payoff? “Trading” your end of lease car = lease turn-in (with the dealer’s option to keep the car) :slightly_smiling_face:
Does your contract actually show the trade?

Yes, there was an actual trade-in. They insisted as lease return, but I showed my intention to sell it outside with actual quotes and they agreed to match the quote.
I’m assuming they make lot more money with it since they don’t have to pay the sales tax.

Was this in addition to your trade or this is the trade equity?

Yes, in addition to the trade-in equity, hence it was a meh deal.

What was the trade equity that they gave you towards the DAS?

If so, your drive-offs are way above $3,000.

Looks like there was $6k in equity but the dealer agreed to giving $3k.

I would consider this a $9k das deal ($3k cash plus $6k equity)


Volvo dealer’s payoff is the same as yours and includes the tax, if yours also does. The only difference is $350 disposition fee that they don’t pay. So, there is no point for them to pay over payoff, they just reclaim this $3k from the deal on the new car.

it has to now. volvo rules changed in june.

I figured it would only be $6,000 DAS since that was the dealer’s offer. Not sure if he calculated the difference between Carvana and dealer payoff or customer payoff, which wouldn’t be possible.

@leaseitt enjoy the Volvo!

i wouldn’t. there’s no other way to monetize the equity, unless you actually buy the car and then sell it. also this whole “equity” thing is about to end. mannheim took a massive dump this week.

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Any public reports on this or just based on auction values?

Also, the only equity that would be monetized is the $3,000, which any dealer would have probably given him for walking in with a lease return.

based on auction values from wholesalers.

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Seems like a way to do it. He’s in CA too, so there’s a path around the taxes.

I thought I shared the Bloomberg article, but maybe not

I negotiated a pre trade-in deal with $3000 DAS with $796 monthly. And then used the $3000 equity as cap cost reduction with monthly $700 payment. So, right, the final deal would have been $6k DAS, but it would been a long path for me to buy and sell and DMV etc paperwork.
Hope I have not confused you guys :sweat_smile:

You mean if dealer buys the car? Obviously, it would show as trade. Was it different before? How?
In his case, I asked because they could have just grounded without buying it.

dealers can no longer take people out of volvos early unless the customer gets a new volvo and the old car is shown on the deal as a trade.

i.e. cannot buy a Volvo without selling a Volvo? Got it :slightly_smiling_face:

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