Deal Check for 2020 Volvo V60 Cross Country T5

[Update]

Hi all,

I just got an updated quote, I feel the discount price is not ideal, I would expect the selling price <35k. Please help me check on that.
They are okay with rolling the $3000 DAS into my monthly payment which will bring it up to around $420 with tax.

Please share any of your thoughts. Thanks!!

------------Original Post-------------
Hi all,

I’ve got an initial offer on a new 2020 Volvo V60 CC T5, the dealer said the sale price is without incentives

BASE MODEL

$45,100

Packages and Options

$1,360

  • Heated Front Seats & Heated Steering Wheel

$750

  • Protection Package Premier

$610

Premium Colors and Trims

$645

  • Crystal White Metallic$645

Manufacturer

Destination Charge

$995

MSRP (STICKER PRICE)

$48,100

Dealer Discount

−$4,074

Volvo Lease Incentive

−$5,750

WESTON VOLVO CARS PRICE

$38,276

Term

36 months

Annual Mileage

10,000

Residual Value (54%)

$25,974

TOTAL DUE AT SIGNING

$3,000

  • First Payment$385
  • Capitalized Cost Reduction

$1,004

  • Estimated Registration & Fees$1,457
  • Sales Tax$154

MONTHLY PAYMENT

$385.31

Registration & Fees include $999

documentation fee

, $199

electronic filing fee

, $15 tag agency fee, $175

DMV fee

and $68.50

tire, battery, Lemon Law, and Rental Surcharge fees

.

Security deposit waived. The capitalized cost of your lease is the Volvo Cars Price plus $995 lease

acquisition fee

.

Payment subject to approval of credit with a credit score of 700 or higher and includes all taxes and fees and any manufacturer rebates. The monthly payment includes $25.21 sales tax and $995 lease

acquisition fee

paid over 36 months.

10,000 miles per year with 25¢/mile overage charge.

Please also take a look at the leasehackr calculator I put in with the information dealer provided, I am not sure if I put everything right.

leasehackr.com/calculator?make=Volvo&miles=10000&msd=0&msrp=48100&sales_price=38276&months=36&mf=0.0007&dp=1004&dealer_fee=1281.5&acq_fee=995&taxed_inc=0&untaxed_inc=0&rebate=0&resP=54&reg_fee=175&sales_tax=7&demo_mileage=0&memo=WESFL%20volvo%20V60%20CC%202020%20&monthlyTax_radio=true

Based on the above, it looks like they are only at 8.5% pre-incentives. I’ll try to push that to ~12% and add MSDs. Any other areas for improvement you see? Thanks!

Do you have Costco? If so, that is an extra $2,000 in incentives.

Check Volvo’s website to see if you are in an area with the $5,750 in incentives for the V60CC.

Thank you. I have Costco and should qualify for the new grad incentives if they have that as well. I live in south florida and I will check the website to see if the $5750 incentives are available here

Didn’t see the picture, but it says so. That $999 doc (dealer) fee is not helping you either.

wait, I think the dealer mentioned the $5750 lease incentives in the email.( infor also in the picture but I am not sure why you could not see that.)

BASE MODEL

$45,100

Packages and Options

$1,360

  • Heated Front Seats & Heated Steering Wheel

$750

  • Protection Package Premier

$610

Premium Colors and Trims

$645

  • Crystal White Metallic$645

Manufacturer

Destination Charge

$995

MSRP (STICKER PRICE)

$48,100

Dealer Discount

−$4,074

Volvo Lease Incentive

−$5,750

WESTON VOLVO CARS PRICE

$38,276

Term

36 months

Annual Mileage

10,000

Residual Value (54%)

$25,974

TOTAL DUE AT SIGNING

$3,000

  • First Payment$385
  • Capitalized Cost Reduction

$1,004

  • Estimated Registration & Fees$1,457
  • Sales Tax$154

MONTHLY PAYMENT

$385.31

Registration & Fees include $999

documentation fee

, $199

electronic filing fee

, $15 tag agency fee, $175

DMV fee

and $68.50

tire, battery, Lemon Law, and Rental Surcharge fees

.

Security deposit waived. The capitalized cost of your lease is the Weston Volvo Cars Price plus $995 lease

acquisition fee

.

Payment subject to approval of credit with a credit score of 700 or higher and includes all taxes and fees and any manufacturer rebates. The monthly payment includes $25.21 sales tax and $995 lease

acquisition fee

paid over 36 months.

10,000 miles per year with 25¢/mile overage charge.

Don’t do down payment, you should be ~$60/mo lower with Costco, anyway. So, around $355/mo with 0 down, but still looks a bit high with $2,000 DAS. Ask what MF they use, looks like marked up. Should be 0.00029.

Edit: so, looks like around $352/mo including tax and $995 acq fee with 0 down, first month and all other fees (~$1,300) DAS

Dealer fee is extremely high, but it is FL so wouldn’t expect anything less. Calculating overall pre-incentive discount (dealer discount - doc fee) you are at 6.39%. Usually easier to just negotiate a higher discount. This is a new car, so don’t expect loaner discounts.

Don’t confuse him with this BS. Dealer fees are part of life, dealer discount has nothing to do with it.

1 Like

Dealer fees are all a part of the car business, but I am sure we can both agree that $999 is quite excessive. I am just telling him that the discount he thinks he is getting is getting mitigated by profit over the dealer fee. The calculation itself is not BS, it is just another way of looking at the deal so that he doesn’t get overwhelmed by all the numbers being thrown at him.

You are also going to find people coming in here and asking him to ask the dealer if they can take off the dealer fee. This will have him end up wasting more time trying to negotiate an idea that dealers are married to.

It is not that confusing

Don’t fall for that dealer BS

What you are telling him is that he somehow needs to target 12% before incentives vs. 10% in NY where dealer fee is limited to $75. How does that help?
Granted, he should be targeting another $700-750 on his current offer.

No I am not. I am just breaking down the deal for him. Discount is going to widely vary, but there should be enough region-specific data on LH to formulate a reasonable discount.

Pre-incentive discount is the only constant. Now you can start talking about including state tax into target discount? No one is talking about total lease cost, just pre-incentive discount.
Our 17-years old told me that he didn’t like the offer of only 14% off on a loaner, but it was INCLUDING mileage penalty. So 16% was not good enough for him. So, where do you stop?

See above. Deals will never be apples to apples. Only pre-incentive discount is. Everybody pays $999 fee in FL. And if they think don’t that means they did not get big enough discount.

1 Like

Sorry :sweat:, I genuinely found every single contact you sent pleasant, polite, and helpful. I thank you for your help!

However, I got obligations to meet to my father, he said you have xxxxx.xx for 36 months, do this. I did get 19% on the one I posted accounting for mileage, and given current market conditions I feel that was fine.

That was not my point lol
You do what’s right for you.
I mentioned it in context of the conversation above - when one starts adding dealer fee to dealer discount (different from counting it in evaluating a deal as a whole) then one may as well start adding mileage penalty when calculating discount on a loaner. So - add dealer fee + penalty and you are at about 10% on a loaner :slight_smile:

Totally understandable, more variables than calculus, which ones do we consider, carry over in each equation, etc.

I’m honestly surprised Weston gave him that much off. The Volvo dealerships in South Florida are some of the worst. It’s probably better for OP to pursue a car elsewhere and ship it. Looks like there is now $5,750 in lease incentives for the region though. That’s interesting. There’s no first responder though, for those who would want to use it.

2 Likes

Using the calculation purely for evaluation metric. If this helps the guy better understand the numbers, then so be it. There isn’t one correct way to evaluate a lease, but rather a combination of factors (some are better than others i.e. the 1% rule).

4 Likes

FL is tricky - incentives vary by zip. But with all the incentives his deal is still good even with ridiculous dealer fees and relatively low discount. @HersheySweet got only 8% in MD also. Dealers know well what they have on their hands in V60CC
p.s. there is no time left and inventory is low for OP to shop and ship. How much (if anything) will it save him, anyway, if he also has to pay broker fee on top of shipping? Extra 1.5% to make it 10% is $700-750

1 Like