Hi I’m looking at leasing a Volvo XC60 Recharge Plus (Oregon), then immediately buying out the lease after the 4th payment (minimum required payments to keep the rebate). Since I intend to buy out the lease nearly immediately, I am trying to determine if maxing out the down payment will reduce my …

[image] paranoidgarliclover: And I think that’s why all of us are having difficulty understanding exactly what you are talking about and how to answer the question in a way that will be accessible to you. Ya, sorry about that. This is certainly not in my wheelhouse. That said, all I am tryi…

[image] senecaso: It seems to me that the cheapest way would involve getting the $9500 lease rebate You’re most likely correct. The downpayment makes next to no difference though.

[image] mllcb42: You’re most likely correct. The downpayment makes next to no difference though. Got it, thanks for that. [image] mllcb42: What are you assuming the lease buyout amount is after 4 months in both situations? This is likely where I am going off the rails. I tried to “sh…

A good chunk of the payments you make go towards lowering the buyout amount. That’s what you’re not accounting for there.

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…

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…

You may find this thread helpful. [image] Please help me understand immediate lease buy out Ask the Hackrs Hello I need some help understanding the figures on a very early lease buy out. I have a Kia EV9 on preorder and it should be arriving in the next couple weeks. The…

[image] senecaso: Is this correct 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, the…

Immediate Volvo lease buyout to capitalize on EV rebate. Large down payment? (XC60 Recharge Plus)

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CarRhino March 4, 2024, 2:23am 33

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