We’ve been working with a dealership over the last 4+ months to secure a 2025.5 XC90 Ultra PHEV. Finally found an available car with the spec we want coming in at $91K MSRP. Dealer gave us 16% discount for a $76K selling price, with $3.4K in fees. Then cited $10K in rebates… I was ready to sign. And then they presented the deal terms:
For a 24/10 they quote $1389/month. They even provide a Residual Value of $59K. This makes no sense to me as even if I ignore the rebates, $76K-$59K = $17K over 24 payments, even with generous money factor, gets you to ~$800/month.
Using LeaseHackr, I arrived at about half the monthly payment that I was quoted by the dealer: for the 24/10 deal → monthly payments of $622 pre-tax, $686 post-tax using the same DAS. Link to Leasehackr Calculator here
It’s clear they just ignored all discounts and rebates in their calc. I’ve tried asking 3 different reps and they all said it’s “simple pricing” and the $1389/mo is the deal.
Can someone please confirm I am not crazy? What would you do? I really want the car and think the deal is great, just feels like no one at the dealership knows how to do math (OR they do and deliberately scam customers). FWIW this is a reputable Bay Area dealership.
For what it’s worth, I tried Autonation Volvo in San Jose just now and they quoted $1842/mo on a $3K DAS, 24/15 with $9K in rebates. Car is $94K MSRP with $5K discount. How can this even be mathematically right?
Good to know… it’s insane to me, because it just implies they have a money factor that is essentially loansharking on steroids, since they’ve given me the cap amount and residual value…
Keep in mind we really recommend on here the exact opposite approach where you put together a target deal and submit it to a dealer.
When a dealer shoots for the moon and then cones down, psychologically you feel like you won, then many people will accept the still crappy deal and still be paying way more than they should.
Admittedly there aren’t a lot of data points on the 25.5 yet, but according to the forum it was far more advantageous on the 25’s in Nov / Dec.
Back to the original point, this could be avoided by restarting with a completely separate dealer group and making an offer. It’s unlikely this is coming down $500 month to get it into this stratosphere.
Keep in mind as a super supporter you have access to rate finder which gives you the base mf and rv for the term you select. No need to get these figures elsewhere.
Assuming the residual and MF are correct, I can guarantee they are not giving you 16% PLUS 10k in rebates. That sounds more like what the 25’s were getting a few months back. I would assume their discount includes any rebates. There probably was a misunderstanding of terms.
As others have said, put together an offer based on data points in the marketplace.
And yes, I only discovered Leasehackr last week (thank god!!!), but if I can get a BMW iX for ~$700/month as one of the prenegotiated deals has, I can pretty much have two of those for the price of one XC90. Makes zero sense but I guess it is what it is.
Of course it does lol
No one gives 16% off on 25s, even loaners, let alone 25.5. MF must be crazy as is and they bumped it to the max, I’m sure. Talking about max - agree with Max_g that this is exactly the same car as 25, but with a tablet and new grill. Just saw it in person.
Full disclosure: I did not even bother looking at the calculator
In the table - but even if you assume the $76K includes discounts and rebates, it’s still hard to reconcile the delta between that and the $59K residual coming to $1400 a month.
