Ya, sorry about that. This is certainly not in my wheelhouse. That said, all I am trying to do is figure out the cheapest way to purchase an XC60 Recharge Plus. It seems to me that the cheapest way would involve getting the $9500 lease rebate, but leasing is cryptic (to me), so I’m having a difficult time calculating the total amount of money I will have to pay before I own the vehicle.
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You’re most likely correct. The downpayment makes next to no difference though.
Got it, thanks for that.
This is likely where I am going off the rails. I tried to “show my work” in the original post, I’ll paste it here to make it easier to see:
67425 - 3000 - 9500 + 995 + 250 + 950 + (950 * 3) + 575 + 580 + 450 = $61575
Basically, I’m just subtracting the rebate and discount amounts from the MSRP, then adding in all of the fees (including early buyout fee), taxes, and 4 lease payments (this part is questionable, as others pointed out already). It sounds like this isnt the correct thing to do.
A good chunk of the payments you make go towards lowering the buyout amount. That’s what you’re not accounting for there.
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Ok, so similar to paying down the principle on a mortgage? That’s fair. If that’s the case though, wouldn’t that just mean that the total cost of the leasing route would be lower than what I have calculated? If so, then that’s great news, and I guess that would explain why my numbers were way off calculating the savings with a down payment.
Your benefit of leasing first is basically the difference in incentives minus the acq fee and buyout fee. So roughly $8000
Thanks, that seems to roughly line up with the numbers I had calculated, so it seems I’m not far off.
Apologies in advance here, I’m likely not understanding something else about leasing… I just tried using the NerdWallet Auto Lease Buyout Calculator, and shows that the cost would actually be $73k. It seems like they are just multiplying the lease payment ($951) by the number of remaining payments (36) and adding the residual value ($38428) and the buyout fee ($450) to arrive at this number. Is this correct? That would mean that no matter when you buy out a lease, you have to pay the rent for the full term (36 months) even if you buy out early. Seems like this would be the more costly route then, even with a $9500 rebate.
You may find this thread helpful.
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Nope, that is incorrect for how early lease buyouts are calculated. What that includes is all of the rent charge that doesnt ever get earned on an early buyout.
Ok, phew. That makes much more sense. Thanks for that link @CarRhino and the confirmation @mllcb42 ! The calculation used by NerdWallet appears to be used in multiple other sites as well. Very confusing.
So, if the Adjusted Cap Cost is $58274, the MF is 0.0038 and the lease payment is $951, then the adjusted lease balance after 30 days should be ~$57758 ((58274 - 951) * (1 + 0.0038 * 2)), so then I think my total cost of purchasing the vehicle would be about $61108. Does that seem correct?
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I dont think i have seen anywhere in this thread where you specified your due at signing amount
I assume you are referring to the amount of the first payment? If so, that’s $950.56. I assumed that was the same as the monthly payment, which is $951, so I thought they were just rounding up.
If thats the case, if you buyout immediately, your cost is just your due at sale amount plus the buyout plus any taxes.
Got it. Thanks, everyone, for all of the help!
Unicorn should be 12-14%
Thats the goal
Forget about unicorn for someone who thinks 4.4% is good.
To be fair, I never said 4.4 was good. I said I was amazed I even got 4.4, given how bad my negotiation skills are. ;). But, yes, unicorn is certainly beyond my abilities. Thanks @thevolvoguy for info
I was refering to this, mostly
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Curious if you ended up doing this. How’d it work out? Thinking of doing the same, before the $9500 lease rebate offer expires in a couple days.