You rushed past some of the details in the incentive stack, this month the programs on the XC90 T8s are nearly identical but it usually helps to know which trim you’re targetting (Core/Plus/Ultimate? 6/7 Seater?)
On the incentives, need to breakdown the $14,500…
- $11,500 customer cash (7500 + 3000 + 1000) that everyone gets - taxable
- variety of targeted incentives you may/may-not qualify for
- $2000 in dealer cash which is NOT taxable but could be included in the dealer discount, may get included by them in the pre-incentive discount
Buy rate MF is 0.00319 which is already atrocious, if you’re keeping the lease and not buying it out (strongly recommend as you’ve learned):
- I wouldn’t want that marked-up
- 10 MSDs will bring that down to 0.00309 for a reduction of ~1.2%
- Depending how much cash you’re willing to bring to the lease, paying the upfronts (acq + fees + taxes) and MSDs will mitigate how much of the lease is just rent charge
With MSDs, 9% off and base MF, your calculator looks more like
If you’re chasing this yourself, I’d put together a target deal for TEXAS that asks for tax credits, and a more aggressive deal for outside of TX where you know you’ll have to pay the entire sales tax. Play with the calculator (assume I didn’t fat finger anything else), but for instance:
- 5% pre-incentive discount with 4% sale tax credits, dealer cash the same, total cost of the lease is less than 9% off with no tax credits
So have a target, know your variables, and see what you can negotiate. If you can get a written offer out of state for (say) Dealer Cash + 9% off + buy rate and you’re paying full sales tax, and you find a dealer with sales tax credits, you can negotiate either the dealer cash and/or the discount down.
But if you’re head is already spinning with numbers (because this is all math, and there are many levers to pull) just hire a broker to get you the best deal you can. We always recommend separating the trade (as long as you’re not trading a current Volvo lease, my understanding is you own/financed the one you’re evicting) - you can see to whomever will pay the most