Currently in the process of trying to lock in a deal for a 2024 Volvo S60 T8 Recharge PHEV. This is my first time negotiating a lease, so I’d love your input and help determining if the offers I’ve received thus far are decent, and so I can figure out which of these (if any, or if both) I should send off to the other dealers I’m talking to as a barometer for them to beat.
Details:
I’m looking at a 36/10 lease. So far from what I’ve learned from all the valuable information here, I’ve indicated my intention for $0 down except 1st month’s payment and applicable taxes/fees. I live in eastern Iowa but there are slim pickings around me, so most of the available vehicles are located in Illinois, Wisconsin, or Missouri. I also qualify for the medical A-plan – is this something I should mention to them now so they can incorporate it into the quote?
Below are the two offers I’ve received so far, both from Illinois dealerships. I tried my best to fill out the LeaseHackr calculator based on the information provided, so please let me know if I got anything wrong! Thanks in advance for any help you can provide!
Option 1:
Note - I plan to request that the $595 theft deterrent “accessory” be removed as their first quote actually included almost $3k in “offered accessories” that I stated I didn’t want. But the sales manager created the second quote and left this one on there.
Thanks! But based on his July deal spreadsheet, it looks like the S60 PHEV is marked as “sold out”
As an update, I sent the offer I received listed above as “option 2” to another dealership I had been in contact with to see if they could beat it, as they have a very similarly spec’d vehicle listed. The salesman came back with a response stating that he discussed with his manager who opted to “take a pass” because they only have one S60 Recharge on their lot and they didn’t want to “take a short deal on it” since it is no longer being produced. He followed up by stating “based on your deal from the other dealership you are getting a very fair deal.”
Ask option 1 what the MF is. Something isn’t adding up. I can’t see how the effective payment would be $45 higher for (when you take into account higher msrp, lower acq fee, and add the accessory) what is basically $875’ish net additional bottom-line. If they are using the same MF as Option 2, it should be an effective payment about $25 more.
Thank you! In the email that I received alongside the lease offer that I screenshotted, they confirmed the MF was 0.00217. But I should still be requesting/confirming that the MF be documented and matches that on the final lease worksheet, right?
As an aside, when I sent the offer from option #2 to another dealership, I was told by them that the dealership that made that offer used the wrong taxes and fees, however he didn’t provide further clarification. I can’t say I fully understand how to calculate the taxes and fees other than understanding that Iowa vehicle tax is 5%, but is it possible that is the reason the monthly payments between options 1 and 2 are $45 apart and not closer to $25 as you are saying they should be?
But I don’t know how it is $1k in up front tax to begin with. 5% of the $10,500 incentive is only $525. Another $30 tax on the acq fee. Doc fee would also be taxed but they lumped the fees together, so I don’t know what that is. Even if all fees were taxed, you still wouldn’t get to $1k. Maybe Iowa taxes incentives differently? Do you have some sort of additional up-front tax on a lease in your state?
Yes I believe Iowa applies a 5% “use tax” based on the monthly payment and the term of the lease… I just can’t seem to get any of my numbers to match the taxes calculated on the offers I’ve received so I seem to be messing up somewhere when I try to confirm what exactly is being taxed
The 5% on payment is already in the final number. 536 base and 563 with the 5% tax. The up-front $998 is what is due on anything paid up front, including incentives, minus government fees.
Edit: oh, this is confusing, but it looks like you may have 5% sales tax but an additional local tax and/or use tax? And I assume that is up-front on total lease cost, so that could be the problem. Still not sure why another dealer would claim you aren’t being charged enough.
Thank you! Not quite sure either. But I’m feeling pretty good overall about the offers from Dealers 1 and 2, so would it be correct to ask the dealer I want to move forward with to provide a lease worksheet after incorporating the $500 cash allowance from the Affinity program discount i qualify for and then verify that everything still checks out? And besides that, is there anything else I need to have them provide me (or that I need to provide them) to ensure I lock down a deal before I drive to the dealership so I don’t get any surprises once I arrive?
