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
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
Selling Price: $63,962
Monthly Payment: $796 w/tax ($700 with trade in credit applied as cap cost reduction)
Drive-Off Amount: $3000
Annual Mileage: 10,000
Leasehackr Calculator Link: CALCULATOR | LEASEHACKR
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)
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.
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.
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