How much does a dealer pay (on average) for a lease-end vehicle?

Looking at buying a CPO Volvo which came off a lease and trying to figure out about how much the dealer would’ve paid for it. I assume they don’t pay the full RV, but maybe I’m wrong? Thanks for your help.

It doesn’t matter what the seller paid. Same way it doesn’t matter what the seller of your house paid. Market values don’t change based on whether the previous owner overpaid or underpaid.

Your job is to look for value within the current market. Based on current market values, an off-lease XC90 may not even be the best vehicle to target.

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Of course I understand that market dynamics are involved, but having some idea of the margin the seller is working with on a given commodity puts you in a better position to negotiate. A homeowner is unlikely to sell below what they’ve invested unless there are exogenous circumstances pushing them to do so. I do appreciate your input

Unless it went through auction and you can see the results, no way to be sure. A Volvo dealer couldn’t buy it out until it was grounded (on schedule or early) so RV from original lease program is going to be your best guess.

It really doesn’t, for multiple reasons. Don’t overthink it.

My sales manager friend has said it isn’t uncommon for them to lose money on CPOs on the sales end. Something about service making money.

They’re priced to move. Either pay the price they’re asking or move on.

No it doesn’t.

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If you are a local customer who will actually service there. DOL is going to be the only metric I’d pay attention to.

Put the Vin in Carmax and look at their offer, that’s probably close to what they paid for it. UNLESS you have someone give you the current MMR which is probably closer

What does that stand for?

Days on lot

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Is this learned or did you deduce this from past experience?

Knowing what the seller paid for it gives you no negotiating power. There are many factors that will give you negotiating power that you’d need to understand, but this is not one of them. Don’t stress about what the seller paid, only stress about how much you value the vehicle. If you think it’s too much, then look for something else.

I’m dealing with this myself, now. Found a Macan GTS I really like, but dealer is asking 5 to 6k more than I value it and they won’t budge. I have an idea of what they gave for it (bought at auction), but that doesn’t give me leverage at all in the negotiation, they have their targets they want to meet and they’ll try to meet it.

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