As @ursus noted, there are two ways to apply incentives in MD.
As for the “taxed like a down payment” part, it depends on the incentive. I’m not going to look up whether this is to the dealer or not right now (especially since I’m at the gym doing cardio!), but many states tax rebates that are “customer cash” as taxable. If they are paid directly to the dealer and are essentially a discount, they are generally not taxable.
Interesting. So Koons was totally trying to milk more money out of me by lying about the allowances only being able to be treated As shown payments and not to reduce the sale price. I couldn’t even get a handle on what the actual sale price was because they were taking things out and putting others in.
Read about XC60 deals and try to understand how these deals structured. I don’t think you fully understand how leases work, hence Koons tried to BS you.
I understand how leases are calculated - my excel model actually matched their pricing with the numbers they gave me and has matched pricing at other non-volvo dealers as well. I think the real issue was that koons kept using proprietary language like, “Wow pricing” and other words that are unique to koons. When I asked for explanations they danced around it.
At the end of the day, the residual and money factor matched the great deal posted a couple days ago, but I think they were using all these buzz words, as well as deception with how the allowances could function, to drive up the sale price, and in turn the total depreciation to be paid off over the course of the lease.
$4000 is $4000 towards the deal. I don’t know about Maryland but in CA the 4k is taxed. In the end it is still 4k that’s applied to the deal. Think of it this way, say the difference between the agreed upon price and the residual is 20k then they apply 4k as down payment so you need to pay 16k over the 3 years. Or they use the 4k and account it as the initial discount so you still need to pay 16k over 3 years. But the 4k is taxed (at least in CA)
Just went to my local dealer to try to get this deal. I’m in maryland. They’re telling me that the $4000 allowance does not lower the sale price and that it’s treated as a down payment. Also, apparently in maryland, the allowance is treated as a rebate and gets taxed.
They offered me the same residual (59%) and money factor (.00067 before MSD). The price came out to over $600 for the monthly payment…
MSRP was $54,455 and the sale price on their website was listed at $47,310. They said that they included part of the $4000 allowance in the same price.
Felt like they were trying to rip me off royally.
Just got another quote from a different dealer - came in over $3,600 less in total than the quote from Koons.
XC60 T6 Momentum
MSRP: $52,625
-$5,325 dealer price reduction (10.1% discount)
-$4k in volvo allowances
-$1k from Costco auto program
=Sale price: $42,300
Residual: 58%
Moneyfactor: 0.00067
Monthly payment with only first month payment down would be $500.42
Total lease cost: $18,015
MSD up front of $5000 would lower it by just under $1,500
In Maryland you have to pay taxes on the full sale price up front.
Any thoughts on this deal? I’m thinking I’ll try to get another $1,000 off the sale price.
That’s a pretty solid deal given you have to pay taxes on the full price of car. I don’t think you’re going to get another $1000 off, to be honest, but go for it! 10% before incentives is good, unless you’re @Ursus 
Good deal. Keep everything in one thread.
UPDATE! I have tentatively agreed to a deal and put in a deposit on an XC60 T6 Momentum! I’m on the road for work, but will hopefully tie this all up on Thursday - hence the deposit.
Terms: 36 months, 12k miles per year
MSRP: $53,995
Sale Price: $43,064 (47,064 - $4k in Volvo incentives - So 12.8% off MSRP before incentives)
Additional $1K rebate (Costco program)
Residual: 58%
Moneyfactor: 0.00017 (after 10 MSD payments upfront)
Zero down (first month payment only)
Monthly Payment: $446
I don’t think I’ll find a better deal than this. Total cost of the lease comes to $16,056. The deal in the initial post that even got me thinking about this came to about $15K total, but was for 10K miles/year and I believe in a state that only taxes lease payments, not the entire sale price, as happens in Maryland.
Two questions:
Thanks!
Very good discount, 300 miles is nothing. Might be a punched demo.
What does “punched demo” mean?
It means they sold it to themselves as a “demo” to record the sale and potentially unlock a volume bonus, but then just parked it.
Like @28firefighter said, but then they get $3,000 from Volvo and gave you just slightly over 7% discount. But don’t think too much about it, you get a good deal.
I see. Thanks for that insight - you are the best! This forum has been incredibly helpful through this process!
Enjoy the new ride! Post some pictures in the trophy garage!
Will do once I get it!
Very good deal. My total cost was 15,024, without a Costco coupon. But I’m guessing you paid more in taxes, etc. So hard to compare apples to apples. Post some pics when you pick it up! What options?
Yeah - I have to pay tax on the entire pre-costco rebate sale price, and also get taxed on that rebate. Gotta love the state of Maryland!
The car has the premium package, metallic paint (Denim Blue), leather upholstery, navigation (don’t need - but maybe it’s better than google maps?), protection package, child seat (don’t need… yet), heated steering wheel and 20" Momentum Wheels (I actually heard that the smaller wheels make for a better ride).
All-in-all, I could do without the navigation, 20" wheels and child seat, and would have preferred the advanced or multimedia package (I won’t have the 12.3" driver display), but oh well. I got a stellar deal on this one.
As I noted in another thread, I’m underwhelmed by all the hype of Android auto. The good thing about the stock nav is that you can expand it to most of the screen. Google maps doesn’t let you make it larger in Android Auto, and thus it’s harder to use/see.