I’m looking to lease a Volvo XC40 Recharge, and while the expected depreciation is decent for a luxury car ($5k per year), the MF is atrocious at .00193
How much interest over the life of the lease can I save by doing one pay upfront?
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It totally totally depends on the money factor discount the particular leasing company offers in exchange for doing a single pay. The discount amount varies dramatically bank to bank.
EDIT-Does Volvo even offer a single pay? I’m not sure they do. If not you can look at doing multiple security deposits. See @jeisensc post below.
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You can (because this is unlikely the last time you need to do the math yourself):
- open a calculator link
- choose volvo
- plug in the MF
- change the MSD value (if you don’t remember that each MSD yields a 0.00005 reduction)
And yeah, the MF on this particular model is awful 
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Volvo offers single pay lease however there is zero information (based on my research) on how much MF reduction single pay provides. Edmunds doesn’t have this information either.
I’m not talking about maxing MSDs. I’m talking about one-paying the lease. Does the calculator have a one-pay option that I missed?
Not for Volvo: there is no one-pay discount
Thanks, this answers the question.
With Volvo, everywhere but in NY, the only way to reduce the MF below buy rate is with MSDs.
Rent charge savings = (Cap Cost + RV) x MF reduced amount x Terms
reduced amount can be MSD, 1-pay etc
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Volvo mentions single-pay option here: Financial Services and Lease Deals | Volvo Car USA
“A single payment lease provides convenience and savings. You make just one payment at your lease signing, freeing you from monthly payments. This single lease payment is less than the amount you would pay over the term of a conventional lease.”
… after he calls me back
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My very generic answer is somewhere in the $500-$1500 range depending those X factors.
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