DEAL CHECK: Volvo XC40 T5 AWD $454/mo

Got a quote for a Volvo XC40 lease for the first time today, all feedback/thoughts/criticisms welcome :slight_smile:

Numbers below. Calculator numbers are slightly off by a couple dollars here and there because i backed into what the dealer presented to me.

Year, Make, Model, and Trim: 2020 XC40 T5 Momentum AWD
MSRP: $39345
Monthly Payment: $455 (incl taxes)
Drive-Off Amount: $1,045
Months/Mileage: 36/10
MF:0.00095 (edmunds MF is 0.0007)
Residual: 56% (confirmed by edmunds)
Incentives: 2k confirmed by edmunds
Region: norcal bay area
Leasehackr Score: 7.7 (score increases to 8.3 if i max out on MSDs)
Leasehackr Calculator Link: leasehackr.com/calculator?make=Volvo&miles=10000&msd=0&msrp=39345&sales_price=35922&months=36&mf=.00095&dp=0&dealer_fee=175&acq_fee=995&taxed_inc=0&untaxed_inc=2000&rebate=0&resP=56&reg_fee=400&sales_tax=9.75&demo_mileage=0&memo=&monthlyTax_radio=true

oh itā€™s not a demo nor does it have miles - itā€™s new. I meant this is a deal for a lease. will edit title

Take it. Cross shop other dealers and double check, everything seems in proper order. Do 10 MSDs, theyā€™d save you 1200 bucks over 3 years with a 4500 upfront investment. Youā€™d get that 4500 back end of lease.

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Thanks for your feedback! Asking the dealer tomorrow whether thereā€™s wiggle room on MF to get it closer to base or if he can go a pinch lower on selling price. Unfortunately I missed the sign up by 9/30 for the costco deal. Good note on the MSDs, will consider it! Thanks for your time.

Doesnā€™t sound like great value

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Yeahā€¦ Iā€™m finding that Volvos are pricey here in norcal! I spoke to two other dealers and this one was the best offer one made.

Really? Volvo at over 1%? Neverā€¦

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Hi! Can you clarify what you mean by ā€˜over 1%ā€™?

How does it compare to the Marketplace offers in your region?

I will refer you to @mllcb42 :smile:
There is some ballpark ā€œruleā€ that a good lease is 1% of MSRP, so in your case it would be around $390/mo (which you can achieve with 11% pre-incentive discount, buy rate MF and MSDs. On Volvo you should always be well under 1% or keep shopping.

Iā€™ve been combing through this forum and reddit and everywhere else I could think of but Iā€™m not seeing too many XC40 lease related discussions, especially for norcal. My ultimate goal was to get the lowest monthly since Iā€™m not picky about trim/options/packages, and this offer was the lowest one out of three dealerships I spoke to!

Thank you!

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This! Itā€™s a decent deal you have, but itā€™s a poor value because of how cheap these cars once wereā€”due to great stackable incentives.

Odd are they will be cheap again, if you can be patient.

For $60 Costco membership they are still good. But people are still thinking if it worth to pay $60/year and possibly save a few thousands on a new car later on.

yeah i dont even go to costco but i wouldā€™ve gotten the membership just for the 1250 discountā€¦ except i was a dummy and didnā€™t realize there was a sign up date limit. there goes 1250 down the drain

Unless I am mistaken, I believe this broker is roughly $10/mo cheaper, which is not much if you have to travel across the state; HOWEVER, note that his deal is a 2021, while yours is a 2020.

Appreciate your sleuthing! Yeah the travel required to pick it up is probably going to be more than the savings haha

For the same money, you can get a fully equipped v60cc with advanced package(adaptive cruise control, 360 camera, etc)