Which makes even offer one pay these days? From what I remember, Volvo doesn’t, and Toyota doesn’t, right?
So for one pay in NY, I just fill in the MSRP, sale price, residual, taxed incentives, and then click zero drive-off and DON’T click the NY box since I’ll be paying it all up front?
You have to be confident you’re buying a car with good value retention… That it’s a car you’d buy anyway and this is just a way to lower your effective price.
Neither Mercedes nor Volvo are good choices here.
What specific models are we talking about here? The hypothetical part of the discussion is now over.
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No, you still click NY. You need to calculate what the lease is, and then will include NY sales tax.
Not considering Mercedes. I just used them as an example bc I heard they charge a significant termination fee.
This is for a Volvo XC90 PHEV T8. MSRP around 78k, sale price around 71k. Then another 10k of incentives brings it to 61k. Residual value of ~52k on a 27 month lease.
Effective monthly payment on these is approximately $860 (total payments of 23k) with 10 MSDs but according to the calculator, depreciation is just $10.5k (I assume this is bc of tax) and almost 10k in depreciation bc of the current money factors.
I don’t see a scenario in which paying $10k in interest over the next 27 months makes sense for me. I would never finance a car at 8% so I’m trying to find the best option. Given that the $7,500 credit is only available through leasing, I figured a lease and then immediate buy-out would be best. Even if I end up underwater at 3 or even 4 years, I imagine the saved rent charges will make up for it. Also, Volvo’s 4 year 50k warranty makes it much easier to just keep it another year.
Am I totally off base here?
While MB does have a 4% buyout fee in some states, it isn’t everywhere. The bigger thing to take away from that thread is most dealers are clueless in the answers they give regarding early buyouts.
This seems like a very important point to my question!
You are not off base, but you are also taking on all the risk of the future value of the vehicle. Plenty of Tesla owners can tell you how that goes. It’s hard to predict and easy to wind up on the wrong side of $20K negative.
What’s the trade-in value of a 4yr old XC90?
Trade in 36k for an equivalent model on KBB. To buy it would be ~42k it looks like.
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