Deal Check: Volvo XC40

Ask the Hackrs
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1

Hi there!

I know this isn’t much of a hack, but my husband and I really loved the Volvo xc40 and after test driving many a cars, we decided if the deal is fair, we’d go with that one over the hack.

Thoughts on this?
Not many deals on this vehicle as we’re aware, but looking to get into something this month.

I think I broke it out correctly here but attaching the deal as well just in case.

2020 Volvo XC40 Momentum

MSRP: $38405
Selling Price: $33,352
Monthly Payment: $415
Drive-Off Amount: $2,000
Months: 36
Annual Mileage: 7500
MF: .00027
Residual: $20,738
Location: SoCal

Not sure what incentives can be used, but I did see the Volvo offer for $500 bonus drive, so I’ll apply for that.

Thanks for the help!

Screenshot 2020-01-10 11.26.06
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2

Stop everything you’re doing and head over to edmunds to get rv/mf/incentive information for the vehicle. If you’re going into the conversation with the dealer without already knowing what incentives are available, etc, you’re shooting yourself in the foot.

3

Check out brokers’ deals here on XC40 for reference.

4

Thanks for the tips. I haven’t seen any XC40 dealers from brokers on this site in my area, that align with this one unfortunately. If there’s a Volvo broker that might have a comparable deal in SoCal willing to discuss I’d be happy to discuss with them.

5

@Benedetto can help you.

6

Thanks! Will reach out to him.

7

Since you are in SoCal, email out Tony at Culver City Volvo and see if you get a better deal

8

Hi,

Can somebody have a look at the numbers for VOLVO XC40 T5 Momentum AWD:

MSRP - 45570
Incentives and Dealer discounts: 5250
Down Payment - 5000
residual - 56% (25519)
MF - 0.00125
Lease term - 36000miles/36 months
there were some numbers for acquisition fees and registration fees, I am accounting everything into one as $2000

The number dealer gave me was 461/month including taxes.
My state tax is 7.75%

I am a noob, I want to make sure if these are correct numbers and I am not being ripped off.

It would be great if someone could show the calculation of how this number come out.
Thanks!

9

First step, head to edmunds to get RV/MF/Incentives for this trim in your zip code.

Then separate out the dealer discount from the incentives.

Then plug the numbers into the leasehackr calculator to baseline the deal you have in front of you. Once you have that worked out, you can focus on where to make improvements. Without knowing what the incentives are and if the mf is being marked up, we can’t really help you determine just how bad this is. I can tell you, however, it isn’t good. With that huge down payment (is that down payment or due at sale? There’s a difference), you’re looking at $600/mo. You can get a very nicely equipped xc90 for that.

10

I would suggest $0 DAS and put that money on MSDs.

11

XC40 T5 Momentum

MSRP: $38700
Selling Price: $33,550
Monthly Payment: $400 (inc taxes)
Drive-Off Amount: $5,000
Months: 36
Annual Mileage: 12000
Location: NoCal

Good deal?

12

Not at all. This is horrible. You can get a nicely equipped XC90 for less.

If you want to actually break what you should be targeting, you’ll need mf, rv, and incentives from edmunds.

13

I keep thinking EVENTUALLY these have to lease well…

For the dealer? Yes

You are paying $19,400 to drive a $39k XC40 for 3 years. I’m paying $3k less over the same term to drive a $52k XC60.

You need to get the details from Edmunds and run the numbers yourself, see if it’s the dealership or the car you need to adjust.