Getting around 17k in rebates from dealer on 88k MSRP XC90 Recharge model with lease. My plan is to just get the car as lease and then buy it in 1-2 months at ~71k + taxes to take advantage of the rebates. Does this plan makes sense with the following terms? Anyone else went through a similar process with Volvo and can share more details on pay-out calculations, is it adj cap cost or more than that? Details below:
XC90 Recharge 7-seater ultimate trim
w/ Packages: B&W, Air Suspension, Lounge package, Protection Premium
A lease-then-buy gets you around that horrid money factor (equivalent to 12% APR!) assuming you have more favorable financing terms lined up or plan on paying cash.
On the downside, you’re on the hook for depreciation. Volvo often inflates their lease residuals to make their leases more attractive, and I wouldn’t be surprised if this XC90 were worth closer to $40K after three years instead of the lease RV of $51K.
What’s the plan for this purchase? Are you keeping it for the long haul, and have you considered other options?
Thanks for the reply. Since I plan to buy, I did not negotiate much on monthly lease payments but instead try to get as much rebates as possible to lower the cap cost for buy out. My plan is to keep the car for next 6 years or so and then trade-in for an upgrade.
If you plan lease to buy then you need to negotiate not only rebates but also dealership discount. You should be able to get all rebates at ANY dealership.
Then when you buy - financing for lease buyout isn’t cheap - 8% retail.
Are you sure you are winning in the end if you account for finance charge?
Aim for 10% discount before applying any lease incentives. Dealers will say no at first, but you’ll see a few dealers may actually do it or at least come close to it. GL
