Deal Check Volvo XC40 T5 R-Design

Los Angeles, CA
2020 Volvo XC40 XC40 T5 R-Design
MSRP $50080
Selling @ $43,564.89
Lease 36 months 15k
minimum down $2,289 (first month, doc & gov fees)
*Acquisition fee if $595 is not included in the DAS—IDK???
$510/mo (before taxes)
Money Factor .00092
Residual $27,544 (55%)

Any insight on this deal?

Here is the calculator link:

There’s no way the first month, doc, and gov fees add up to $2289

How much incentives are rolled into that selling price?
Is that buy rate?

This is my first time trying to self educate with the process. Definitely open to the critique.

On the lease calculator, I included the acquisition fee as a part of the drive off amount.

Heres an image of the quote I got from the dealer.

Step one here is to verify rv/mf/incentives with edmunds. Your selling price is not $43564.89, as there is bare minimum $1250 in rebates there (although I’m guessing there is also some volvo allowance/dealer cash rolled into the $44729 “selling” price they’re showing on their offer).

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The rv/mf/incentives based on the quote sheet seems to be consistent with what is reported in the XC40 thread at edmunds. 55%/0.00092/1250(Costco).

I see that there maybe another 1500 lease cash I’m missing through Volvo Affinity for Medical professionals.

And how about for volvo allowance/lease cash?

Did you post and ask for your zip code? Incentives vary by region.

this is what I got from edmunds based on my zipcode:

0.00092 MF and 55% residual
$1500 lease bonus

ok, so they’ve rolled $1500 into the sales price, putting your actual sales price at $46229, for a pre-incentive discount of 7.7%. How does this compare to other xc40 deals you have researched here?

pardon my ignorance, how did you arrive at $46229 number?

I have definitely seen some aggressive pricing offered through the car concierge services. Here’s one for example for a 2021 model:
$44.5K XC40 T5 R-Design AWD $389(+Tax) Per Month with Inceptions and MSDs DAS

Your deal sheet shows a sales price of $44729.89, which has $1500 in lease cash rolled into it. Back that out and you get $46229.

The monthly on the broker pricing is irrelevant, unless it’s in the same region, includes the same incentives, is for the same terms, etc. By comparing pre-incentive discounts, you’re normalizing the values for region, personal situation, lease terms, etc.

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Good point. Here is the invoice price compared to the affinity program deal.

Yes, a-plan locks you in at invoice (plus elite bonus), which usually makes it more expensive to use than not to use.

So after incentives and the rates mentioned above, It’ll be 550/month (tax included). Seems to be an okay deal to me. Any other insights?

That’s a lot of money for an xc40. I’d rather spend less on an xc60.


Thanks for the insights!

Agree that A Plan is probably not a good deal on a 2020 at this point, because it limits the preincentive discount. @mllcb42 asked how 7.7% compared to other deals here. Suggest you search the shared deals section- I suspect you can find a better deal without A Plan.

If you are new to leasing, strongly suggest reading through the Leasing 101 articles here and looking at other signed XC40 deals to better understand Volvo deals and how the discounts work/stack.

This isn’t a good deal, I would do more homework before proceeding. And if you want other deals reviewed, please post those here for feedback before you sign.

Good luck