Here’s my calc link. This uses a 10% discount off MSRP (which is on the low end of signed deals I’ve seen), incentives of $14,500, and a MF of 0.00359% (higher than signed deals I’ve seen, and half way between the Volvo MF of 0.00319% and my current offer of 0.00389%). RV of 54%.
What does everyone here think of the above target? I am not trying to strike an “aggressive” deal. I have little kids and a busy life – I will happily settle for average just to avoids the headache of traveling hundreds of miles away to find a dealer that will bite. I’m just trying to avoid “terrible” and “atrocious” which was said of my original offer.
What’s frustrating is that I was basically laughed out of the room by the two dealers I sent this target to today. They won’t budge unless I can prove someone has already offered me similar terms in writing. And there’s only 4 dealers in my metro area (DFW), so it feels like I’m starting to run out of options.
Compounding my frustration is the fact that these dealers hardly put anything in writing. Here is the “best and final” offer I just received from one of them a minute ago. Any thoughts or advice how to reconcile this with my calculator target?
I recently got an in-person appraisal at CarMax and was quietly told that 7 days is sevenISH.
Sure, part of the deadline is risk of the market changing and the number of additional miles you may put on, but it’s also to create urgency.
If you go in on day 9 or 10, some guy isn’t going to spend 45 minutes on another encounter with the onion rings and used Plackers in your door pockets.
I do, but I’ve learned my lesson about letting it fall out of warranty! It was a great car for the first 4 years honestly. All my problems started happening once it fell out of warranty. With this lease I’ll just keep it for 3yrs (with all service fully covered) and then get rid of it, especially now that I understand how the Texas double taxation works.
Anywho… any feedback on the latest offer I shared? $879/mo with 0.00352% MF is obviously better than where I was at, but the problem is this dealer won’t even send me a detailed breakdown so I can’t compare it apples-to-apples with my other offer or to the calculator I linked above. I’m not entirely sure where to go from here.
I wonder if it is a better option to just look around the marketplace forum and hire a broker? If the broker cannot secure a decent deal in your area, then I do not think you are likely to get one with those dealers. Also, a broker can save you from all the pains doing the calculations.
I hired a broker and get a 700/month, 5k DAS deal on a ~90k xc90 earlier this year. I was having the same mindset as op - not trying to get a crazy deal but get a good/average one.
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?)
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
Also, keep in mind that incentives change every month. So, a deal you saw posted from July may not be replicable now. All you can do is look at the dealer discount, PRE TAX, then use the current MF/RV/Incentives and your TX taxes. You may get wildly different numbers than previous deals even if you get the same dealer discount.
I’m sorry but it’s hard to take this question seriously
A 10yr old platform should lease at anywhere this price? A car that leased for 300-400 plus tax last November should lease anywhere at this price? Relative to an Infiniti QX60 this month or whatever is the flavor du jour leasing below $500 for a relatively brand new product, should an obsolete dinosaur lease anywhere near this price point?
This community is awesome, I really appreciate all this feedback. I just negotiated an offer that’s much better than before. The dealer won’t put it in writing until I come in person, but the numbers he quoted over the phone are reflected here in the calculator.
TLDR: 10.8% dealer discount plus $15,500 of incentives, with a money factor of 0.00321. Unlike the other offers, here it’s a true “zero drive off” with all taxes & fees captured in the monthly payment. $884/mo with zero drive off is equivalent to $684/mo without (according to the calculator).
Is this an acceptable deal? I’m not looking for a home run, I will be happy with good and fair. And regarding the platform, personal preference but I still like the XC90, and it got a decent refresh with the 2025.5 model. One note though is the car I’m looking at is a previous dealer loaner with 1500 miles; they don’t have anything brand new in stock.
I feel like that is too much but its your money. Not a great deal but if you are comfortable with that payment and not get upset when people start posting better deals towards end of the year, go for it!
not get upset when people start posting better deals towards end of the year, go for it!
With the $7,500 EV credit expiring at the end of this month, do you really expect holiday deals to beat that? Am I overvaluing the significance of the EV credit?
You never know, just to move inventory, I feel like companies are scaring people to buy before 9/30. I am almost certain Mercedes will continue their incentives on EQ cause no one wants to buy those cars. I think Volvo had a big credit last year for 2024’s to move them.
They might lower the MF to balance out the EV credit too
I think the dealer should be more worried about the incentives vanishing than you should be. Is this with/washing your trade?
Also keep in mind $0 DAS here means you’re paying ~8% rent charge on everything INCLUDING 6.5% sales tax on full msrp. I am the king of $0 DAS and this makes me throw up in my mouth
Also keep in mind $0 DAS here means you’re paying ~8% rent charge on everything INCLUDING 6.5% sales tax on full msrp. I am the king of $0 DAS and this makes me throw up in my mouth
Oh that’s an interesting point! Would it actually be better for me to pay the taxes and fees upfront in that case?
Yes but given the high MF and the upfront tax situation in TX I’ll take the @trism argument- it’s highly unlikely you total it that early (I heard ’s neighbor just had an oopsie in their XC90).
I would at least do MSDs but I’d pay the upfronts on this deal to avoid paying tax and rent on the upfront tax.
In OPs shoes I’d be asking every Volvo dealer in TX if they have tax credit - that’s easily $3000+
’s neighbor just had an oopsie in their XC90).
