My fiance has a 2020 Acura TLX, that according to the KBB’s/CarMax’s etc she has upwards of $7-8000 of positive equity in. Lease ends in December.
We figured it can’t hurt to try and take advantage of the equity so we have been on the hunt for new vehicles lately and finally pulled the trigger going to a local Volvo dealership to inquire about a new XC60 Momentum.
Didn’t take long for us to realize it is a REAL bad time to buy, or we were just getting hosed…but we were told that a new XC60 (MSRP of about $49,000) with her positive equity of $5,000 rolled in would be $700 A MONTH for a 36/10 lease. I couldn’t believe my ears.
I’m not a leasing expert, but i’ve been around the block enough times to know this doesn’t sound right…or does it? I myself have a 2021 Jeep GC Limited that was about $45,000 upon lease, I put nothing but the first month down last year and my payments are under $500. $5k into a lease equates to almost $150 a month no? So Volvo leases typically are in the 800’s? Better programs for Jeep i guess?
Can anyone provide on any insight on what a reasonable Volvo lease should be for an XC60? I tried looking at the deals on the forums but its tough for me to decipher them because I dont know what else comes with it.
Keep the transactions separate if possible. Sell your TLX in one transaction, and negotiate the lease of an XC60 in another.
In general, it is a bad time for leasing. Your best bet would be to head to the marketplace and find a broker. What you see in their spreadsheet is what you’ll pay, assuming you qualify for any rebates listed. Any questions, just message the broker and they’ll walk you thru the process
If you’re set on the XC60, it may be more beneficial to finance a CPO one or a new one. Depending on rates, you’ll probably be at or near the same payment, except you’ll own it
Definitely going to weigh our options or just hold off completely for now…the idea of paying ~$700 a month for a lease makes me cringe especially putting that much into it off the bat. I feel like thats Range Rover prices.
As far as “third party”, I thought the CarMax’s and Carvanas werent considered third party? Technically they are dealers, I always assumed third parties meant another person.
Total bummer, we were pretty jacked up when we saw how much equity she had and thought it would be fairly easy to get something at a great price.
Depending on when you got it, that may have been a terrible deal.
You cannot make decisions based on the monthly payment as some percentage of MSRP.
But yeah now is a terrible time to lease a car. Unless you can wait for a Wrangler 4xE custom order or find the exact trim of Nissan Leaf or Frontier in stock, forget about it.
Definitley not saying it’s a good deal at all, just pointing out the drastic difference in the payments for vehicles that are in similar ballparks pricewise.
If you are looking for Volvo still check out market place offers. There few brokers offering Volvo around our area and you can easily find their pricing to compare to what you’ve got at the dealership. Alright it won’t be apples to apples since they baked equity into the payment.
Did the dealer specify what the sale price was?
Did they mention whether you qualified for any rebates? FWIW, check out the Edmunds Forum for up to date info on incentives, money factor (MF) and residual value (RV).
As others have stated, it is a bad time to lease.
- What they said.
If I were in your shoes, I would do one of the following:
Keep the TLX till December
Look at another SUV
Definetely check out broker deals in the “Marketplace”
Where did get the $7k equity number from?
If it’s 3rd party, you need to check with acura to see if you’re allowed to sell to third party, and if so if the buyout the same. If you’re not allowed to sell your lease to 3rd party, you can buy out the car and then sell to them if there is enough monetary incentive to do so.
If you can actually get the $7k, it’s a good way to get into a new car.
Was a guesstimate. Carvana and Carmax offered over 27k, and KBB trade in shows the value of the TLX at 30k….her buyout is just under 21k it doesn’t even have 10k miles on it.
Not a good time to lease a Volvo from what I’ve seen. Better deals can be had on orders right now, if you can wait. Still, that limits you to certain brands and models. If you’re stuck on Volvo, buy my wife’s V60 or talk to a broker.
