I’m being quoted a money factor of 0.00346 for a new lease on a Volvo XC90 Hybrid. This is the number coming from multiple sources (including Leasehackr calculator), so I assume it’s being set by the lender/bank.
Will dealers negotiate a lower MF if you have a high credit score, or are they obliged to stick with what the lender sets?
Is there a chance the MF will go down in the next month?
I’m already looking at 10% off MSRP and a high residual value (73%), so it’s really the MF that’s driving up the monthly price.
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, I don’t work for Volvo Financial and know their strategy, so nobody knows. If corporate decided to punt more money towards it, it could drop to 0.0001 if they wanted to. Though that’s probably a near zero chance.
Obligated. Lower credit scores get charged a higher rate. You can use strategies or tools like Multiple Security Deposits to reduce the money factor, this includes putting payments up or multiples of payments to reduce the money factor you would receive back at end of lease.
Negotiate more or pick another car or pay up
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If your credit is phenomenal, give it 2-3 months. Subprime is about to be punted by financial institutions.
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MF on Volvo hybrids have always been high. They pass on the $7,500 rebate, so can charge higher MF. The RVs on hybrids are also artificially inflated.
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So sounds like MF may be non-negotiable if it’s set by Volvo Financial and my best option is to push for a higher dealer discount off the MSRP.
Do MSDs as suggested above.
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Especially do MSDs since there’s no way anyone is getting out of a Volvo lease, so you don’t have to worry about anyone paying them on a potential transfer.
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There’s a little more to it.
Does 10% include the factory-to-dealer cash? Volvo deals trip up a lot of people on what the true discount is.
What rebates do you qualify for?
MSD, as already mentioned.
Post a link to an LH calculator of what your target deal is.
no they will not.
I did some more research and it looks like the 24 XC90 hybrid has a lower MF and a slightly higher RV – all of which doesn’t make any sense to me, but so be it.
I think I could get a bigger dealer discount off MSRP for a 24 than a 25 and I’m fine with a 24, so thinking that’s the better route.
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