24 vs 36 volvo lease

Ask the Hackrs
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1

Hi, I hope everyone is having a nice Friday. Currently looking to lease a 2020 Volvo T5-momentum, since the 2019 took a huge hit on MF and RV.

With that being said, I’ve only leased kia’s (creature of habit) and only for 24month leases. What would be the benefit to doing 36months compared to 24? I’ll link 2 different calculations (everything is the same except the RV and months) and the calculator favors the 36month. Is that because it’s basing it off the monthly price and MSRP/selling price??

Here’s the links and yes, I know 10% isn’t much, but I’m trying to shoot for 12 or even 13 if I’m lucky.

2

I think the only benefit is the cost. Most people go with 36 because you can drive much more car for the price. We’d all go 24 if we could. On second thought, we’d all go 12 if we could!

3

Sometimes it can be better for 24 months if there is a big leasing incentive and one can avoid maintenance like tires

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4

Generally 36 month leases are cheaper, so that’s what most people do. Occasionally, 24 months make more sense, so that’s what people do then.

Do keep in mind that the 19s took a big RV/MF hit, however the incentives in some markets are huge. Like $15k on some cars.

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5

Ya, I know they took a big hit and there are some huge discounts… I guess it would be worth it if I could snag one with a huge discount right?

6

You’ll have to run the numbers and see

7

The sweet spot on '19 S60 with $15k (in NE) incentives is 30 months, fyi.
You only need regular 11-13% on new or 16% on a loaner to have a good deal.

8

In my area, costs to register a car are high. Over 36 months, I get an almost equivalent payment, and the difference between the 24 & 36 mos. leases is less than the cost of registering a car again 2 yrs. later.

9

So far 2 dealers have given 10% off before incentives/rebates… I’d love 13% but I think it’s unlikely on a new (I’m in CA). I didn’t know they did 30 months… I thought it was just the traditional 24/36.

Might look at the lease worksheet for some 2019’s.

10

Which dealers are you working with? Some in socal are very aggressive and some hardly discount at all.

11

Everyone within 100 mile radius lol. It’s difficult because they keep showing the lease worksheet either with the rebate/incentives included into the selling price, OR if I ask to see it BEFORE rebates/incentives, they don’t put it on the sheet…

One dealer asked to see the worksheet (I show them but blocked out the stock#) and they’re asking for the stock# and dealer info so they can bring it to their manager to try and beat the deal… Little hesitant because I don’t want them to contact the other dealer or something. What do you think?

12

Why is 30 months the sweet spot for the 2019’s??

13

Because it is cheaper than 24 and 36?

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14

As others have said, it definitely depends on the maintenance costs associated with the car. Its helpful to figure those out and then factor them in monthly try and get an idea of an “effective” monthly payment.

15

Anybody know who would be the most aggressive dealer here in the Dallas or Fort Worth (DFW) area on an XC90?

16

Wondering if this is a good deal on a 2020 Volvo XC90, T6 Momentum, 6 seater in southern california

MSRP = $59,540
Sale Price = $51,000
Title added to Cap = $1,080
MF = .00163
Residual = 62%

36m 10k
$1272.87 drive off
$620/month ($566 + tax)
I have a $1K incentive with USAA insurance to put toward down/driveoff and is included in both quotes
I went to another Volvo dealer nearby and they came in at 640 and 1375 drive off

17

What did Edmunds tell you MF/RV/incetives are?

18

.00163 and 62%
$2500 incentives

Thanks!

19

That puts you at 10% off pre-incentive. In socal, on an xc90, you can probably push for another percent or two.

20

They gave a dealer discount of 1k and 4K in dealer allowance. Not sure if it matters but one for 1500 and another for 2500. Thx