Shopping for an XC90 PHEV to replace my wife’s XC60 lease coming due in Dec. We are in the SF Bay Area
Got an offer on a 2024 Core model for $596/mo with 6K down. Unfortunately the dealer was a little cagey and didn’t give me RV, MF, etc etc just this deal sheet telling me they would go over all the numbers when i brought the XC60 in and was “ready to do the deal”.
I am now shopping for a similar deal at area dealers because I would prefer a different interior color (only '24 on this lot was black interior) and maybe a higher trim level.
This is our second lease ever and i’ve been lurking here trying to get more savvy, figured now is the time to start posting. Thank you Hackrs!
Per the Rate Finder, I plugged in a Sacremento zip code, and you should be getting the $7500.00 EV credit and a $3500 Lease Allowance before you even negotiate anything off the price. If you have a FWD volvo, there is a $1000 loyalty. The MF is hurting you this month at .0035 (equivalent to 8.4%). No one on this forum ever recommends putting money down other than the required tax, title, first month, because if you get into a wreck, you lose all of that equity. Also, it is easier to negotiate with multiple dealers if you simply state that you want nothing down other than the standard inceptions (usually around $2k). If you take out that down payment from the calculator, you’ll see its not that great of a deal - you’ll be paying about $785/mo for the Core model - not even the Plus. Given the high MF, you may be best to wait until September to see what deals are offered.
This was my best stab on the Calculator
Also, found this on a different thread. Given the announcement on 9/4, you may wish to wait, as that could affect pricing and choices.
Thanks, great info. Ya the MF seems high relative to what I was seeing at Mazda for the CX90 I was cross-shopping.
They told me the $7500 + $3500 + $1000 loyalty is factored in the “rebates” portion which lists $12K in rebates above the monthly quote.
I would definitely prefer to do minimum down, credit is pristine.
The taxes on this TX are listed at >$6K, so is my “cash down” being applied there or against the purchase price?
Guess I could use some education on what the minimum “required tax, title, first month” should look like (is this the “around $2K” you mention as standard inceptions?)
Overall it does sound like I should wait until after this announcement.
We have 3 kids under 5yo and I’m scaling a 2yo business. Wanna take some time off for the holidays and not bother with last minute car shopping, so I’m just fitting this in where my schedule permits.
The sales tax on this doesn’t make sense for CA. Is this a quote that shows leasing and finance options on one page? I think they are showing the taxes/fees for a purchase and not a lease. Also, they aren’t showing the Lease Acquisition fee which makes me certain the calculations aren’t for a lease.
Yep, I followed up with the sales rep about this and residual value. Reply was “the breakdown always shows everything included, you will only pay the full sales tax if you decide to buy out your lease”
I’ve gotten a few deal sheets this week from other stores and they look like lease deal sheets. This one is the only odd one, I assume it’s just a dealer/manager idiosyncrasy. I asked them to provide the missing info. They did clarify that the $596 is all in including taxes.
I got another deal sheet today on a '24 Plus, appears substantially worse, but at least it reads like a lease
I replied by asking them to beat the terms I had elsewhere. Clarified to the first dealer and this new one that I wanted quotes with minimum inception costs.
Thanks all for the feedback so far.
It has occurred to me that I should have an ask put together and be shopping that rather than starting with whatever quotes they want to give me.
My suggestion would be to change up the approach. Research this site a bit to see what discounts off MSRP others have received, use the calculator to make sure you get all the incentives you qualify for etc. and present the dealer with something you are comfortable with.
Just asking a dealer to present you a deal is never a good option. It really comes down to how much effort/time you are willing to spend on this. Using a broker can always help if time is a problem.
Just got a T8 Ultimate for 10% off MSRP before any of the rebates/incentives and a buy rate MF of .00275 (yours may be higher in your market). This car was in IL, but at least a data point for you to go after.
They play games with all of the numbers on a monthly basis. The MF is obviously important, but while it may be high, they adjust the RV or add an extra incentive if things aren’t selling. Everything changes depending on the month. So, that’s why time helps. I leased mine last October, and while the MF was high, they upped RV to 73% (on a 2 year lease). You can find my calculator by searching my posts from last October. Then, the following month (of course after I bought), kept the high RV and added another incentive. So, I kicked myself afterward, but still thought I had a decent deal, and I love the car.
Thanks for the info. It does seem like Volvo loves to play these games offer tons of incentives but make up for it with a high MF! We are trying to actually hack our way into buying a car we want. With todays interest rates I was hoping to lease with a reasonable MF and then buy it out at a later date. But these Volvo MF’s are crazy expensive right now.
Then what you would want is high mf, high incentives so you can capture the incentives at lease inception the buy the lease out immediately to negate the high mf.
Is that because the buyout is probably more at the end of the lease than market value. But I’m not seeing very attractive interest rates on car loans right now and if I can find an attractive MF with decent lease incentives it at least allows me to play the fed rate cut game and finance the buyout at a lower interest rate down the road than if I just took out a credit union auto loan right now. I also buy and hold my cars for a long time. My current car is on to 14 years. I thought being a person that drives the car for a long time that this lease to buyout mght be the best way reduce overall financing costs. TBD on if I find that attractive enough lease first though.
Maybe this is a dumb question but if there are $12k in rebates why is the cap cost reduction only $14k? I thought the $12K rebates + $4k cash would make the cap reduction $16k?
