Deal Check: 2020 Volvo XC90 T6 Mom

Good evening everyone

We are located in Socal. We received this quote today and after using the calculator I feel like there is something missing here because the calculator payments are less than what they are quoting me.

36 Month - 10k Mile per year

These are all of the numbers provided by the dealer:

MSRP - $63,625.00
Cap Cost - $56,019.00
Cap Reduction - $963.32
Trade in - $27,800.00 - This is $700 over Carvana offer and $1,200 over Vroom.
Net Trade - $1,849.04
Customer Cash - $500 - I repeatedly said no cash down but they insist this $500 gets a better deal somehow
Drive off - $2,349.04
Money Factor - 0.000950 - They say this is the MF after 5 MSDs.
Residual Rate - 60%
Residual - $38,175.00
Tax Rate - 7.75%
Gov Fees - $7
License Fees - $667.00
Dealer Doc Fee - $85.00
Bank Acq Fee - $995.00

Monthly payment pre tax - $588.51
Monthly payment with tax - $637.06

So they said the 5 MSDs is what brings the MF to 0.00095. With every MSD it would drop 0.00005. That doesn’t seem to add up with the Drive off amount though.

Any help or input on this is appreciated.


Why are you putting your $2,349 drive off in to your down payment section? Where is your $963.22 cap reduction in your calculator?

You should also put the license fees in the calculator in the government section. You are missing them. Is there zero incentive in this car?

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In their form that the provided they added the positive equity in the trade in with the $500 cash down and listed it as Drive off.

I was confused on the cap reduction because I don’t know where that $963.22 is coming from. My understanding is the cap reduction would be money I would be putting down to lower the monthly payment but that number was never discussed. Am I misunderstanding the definition of the cap reduction?

They have no incentives or rebates on the car currently.

Did they tell you that or you assume there aren’t? There is $3,500 Volvo incentives.

You are right about the definition of cap cost reduction. Your positive equity from your trade plus the $500 cash would be your cap cost reduction in this case.

Are you sure they said drive off? It sounds like that’s your downpayment. Which means your drive off will be higher with the gov fees.

I’m assuming because on the print out I have under “rebate” there is nothing listed. That $3500 could be included in the difference from MSRP to Cap Cost though. I didn’t ask that question. I just saw the $3500 incentive on Volvo’s website tonight.

On their print out it says “drive off”. I updated my calculator based off your comments and the monthly payment is now within $10. I didn’t quite understand the calculator FAQ so thanks for the help with that.

Yes, they included this $3,500 in the discount

So you’re in equivalent total of about $700/month for 10k/year? If so, absolutely pass on this.

So at this point other than adding MSDs it’s all about getting the MF lowered correct? Thanjs