Something about the numbers in this lease seems off to me. Dealer kept saying, “that’s how Volvo makes us do it.”
Basically, the math doesn’t seem to line up. See below:
Gross Cap Cost: 61,094
Cap Cost Reduction: 10,999
Adjusted Cap Cost: 50,094
Residual Value: 37,256
Depreciation: 12,837
Rent Charge: 10,566
Total of Base Monthly Payments: 23,403
Base Monthly Payment: 650
Basically, I leased this for 650/ month paying only first month payment at signing. What I don’t understand is how starting with adjusted cap cost of 50,094 + 23,403 total of monthly payments results in a residual value of 37,256. Where’s the other 10,565 difference disappear to?
At the end of the day, I just wanted the lease to be $650/ month with only first month down, which the dealer achieved. I’m just surprised the buyout is so high, given trade-in + other discounts applied.
I’m usually more meticulous in researching these deals. Shame on me.
Thanks in advance for helping me to understand what I signed up for.
It honestly amazes me that so many people lease without having any idea what they are doing and they say the numbers ‘seem off’ or ‘seem high’…dang. RV is solely a percentage of MSRP (and MSRP is not noted anywhere). If you really want to learn something plug your numbers into the LH calc to see how a payment comes about. Post that link.
