kendo - welcome to the Volvo leasing dojo. You will need to train to lock in a great deal. So its time for the Kenshi to remove the “not” and become a “sophisticated” lease negotiator. Consider yourself lucky, The Volvo Sensei here are as good as they come. A few of them have already guided you away from signing a 36 month financial liability. Listen to what they have to say but you need to put in the work. (extended Martial Arts metaphor ends here).
Not interested in work (not everyone has the time), do yourself a favor and find a broker here and happily pay up to $500 to get a great deal. They will save you from a bad deal and your fee will be paid back approx 3-5x.
You can learn a lot in a short period of time - if you accept the challenge. Heads up, a Volvo lease carries a higher degree of difficulty than other badges. Here are some concepts you must wrap your head around.
A. Volvo’s go-to-market strategy makes heavy use of direct-to-dealer incentives. Dealers account for this incentive in their selling price offer to you. You must really understand the concept of PRE-INCENTIVE Discount vs Dealer Incentive to negotiate a good Volvo deal.
B. Would you pay the same price for a demo car and a new car? No, you negotiate a higher PRE-INCENTIVE discount on a demo.
C. Since a demo has a small number of miles on it, it will be worth less when you turn it in. New leases will have approx 30K miles on them when they get turned in, your demo will have 30k+3k. Volvo will adjust the RV of your lease. Volvo uses a unique method to adjust for demo miles. Research here to figure it out. Do me a favor and post your acquired adjustment knowledge here - and we will be even. I haven’t figured it out yet.
My earlier comments still apply. Go do your homework. It will pay off.
He gave me selling price which he said was $36,500 so about $1k off from @mllcb42 's suggestion.
His offer has improved to $412 inc tax with $2k DAS
This is what my lease calc looks like after inputting everything I know. He mentioned a dealer fee of $995 and a $995 bank acq fee. I’m hazy on the other fees involved. The calculated payment doesn’t match what he’s offering.
I would recommend to start talking to a GM rather than a salesperson.
Also, I think you need to build the deal yourself using information available through Edmunds, LH, Volvo’s website before you talk to any more dealers.
Speaking to “New Car Manager” now. Latest offer is $389 (inc tax) with $2k down.
This is the deal in the calculator, using info from Edmunds (52% RV, .0007 MF, $1500 lease cash). I subtracted $900 from the RV because of the miles (it’s a demo). So that takes us down to about a 50% RV. Calc is giving me pretty much what they are offering.
Should they be giving me more than 16.9% off of MSRP for the demo?
That’s the offer but they lowered the down to $2k with $389. All I see is a $799 fee and a gov fee. Wasn’t sure where to put it but does it matter as long as the total amount is in the calc?
@kendo I find Volvo deals a little tricky. One step you need to nail is to properly calculate your pre-incentive discount. Volvo gives money straight to its dealers to lower your selling price. Dealers usually net it into your selling price offer. Can you clarify - where do you think the dealer is reflecting the $1,500 dealer cash. In your calculator you are showing a Pre-Incentive SP of $33,074. Please make sure its accurate. If not, here is my hunch in how the dealer is treating the dealer cash.
If my assumption is accurate, 13.2% pre-incentive on a demo is outside a discount range most people will settle on (under normal market conditions, unlike today).
It would be helpful to determine where they’re hitting you with the loaner mileage penalty too. Some dealers just include it in the sales price, so the pre-incentive discount is better than it would appear to be.
You have a few problems with your calculator. I suggest you review the calculator tutorial, there is a lot of good stuff in there. Here are a few quick observations:
It looks like you have Dealer Lease cash in taxed incentives - it should be untaxed.
Your Pre-Incentive Selling Price (called Selling Price in the calculator) maybe overstated. You should not have the Dealer Cash in the calculator SP.
Your deal sheet shows a cap reduction. That needs to be in your calculator.
You dealer is capitalizing govt and doc fees. Make sure you read how to handle this.
I’m sure I am. Not contesting that. Are you suggesting that I ask them what the acquisition fee is? If so, is the purpose of this to see if they are marking it up? How do I know what it should be?
The main purpose is to get all the numbers in the right spot so when you run the calculator, it outputs the right numbers. When you have that sorted out, you can accurately see what improvements to the deal do.
