Hey Hackrs - new to this forum and would love your help understanding on landing the best lease for a 2021 Volvo XC90 T8 Recharge. Here are the quotes I received so far for 36/10 norcal region
1)A plan pricing - inscription expression 7 seater (total drive off 3500 with monthly 756 ) 11.5% discount off of 67275 MSRP
2)A plan pricing - inscription 7 seater (total drive off 3500 with monthly 916 ( 10.8% discount off 75925 MSRP)
Inscription 7 seater DEMO ( total drive off with 10 MSD 12,000 with 893 monthly; nearly 4k miles on the demo right now (11.8% discount off 74825 msrp)
My questions to the Hackrs:
A) is A plan pricing negotiable or am I stuck? Can I opt out and negotiate better pricing say 15% off msrp? Is that realistic?
B) what exactly are A plan benefits?.Is it just an extra 750 on top of incentives or more than that?
C) I was expecting the 3) demo offer to be better. Is it realistic to push the demo discount closer to 20% off msrp?
D) Do you think pricing will get better as we get closer to the 2022s arriving? Also, is it better to negotiate at the end of the month vs. now?
Your feedback would be greatly appreciated and thanks in advance for your help.
The good news is that now it is, according to @Benedetto. But it may be regional.
Yes, you only get $750 on XC90 with a-plan.
No, it’s unrealistic to expect 15% and 20% off now and never was.
Be sure you’re looking at pre-incentive discounts when comparing percentages and not post-incentive. I can’t imagine any dealer is giving 11% pre-incentive on a walk in quote on an a plan deal right now, but you may be getting there after the incentives are factored in (aplan bonus, Volvo allowance/lease cash that goes direct to the dealer, etc).
Thanks mllcb42! I am looking at my quote printout and it looks like all incentives are already rolled into my % off MSRP except one - I see a value of 1133.40 labeled as “rebate” shown right before my final balance after TTL. Only the A Plan quotes had this rebate number - demo did not. MF and RV are also not shown.
It’s always in your best interest to independently verify the rv/mf/incentives going into the conversation so you know where you actually stand.
We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.
Read Leasing 101 (Blog | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
Pick a specific vehicle that you want to target
Gather the current MF, RV and incentives from Edmunds forums for your zip code
Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
Plug your numbers into the LH calculator (CALCULATOR | LEASEHACKR), and use a pre-incentive discount similar to what you have seen
Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.
With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.
A-plan cannot be used on demo/loaners. I think strong discount now would be 8-9% off pre-incentives and before a-plan.
Edit: there is also $3,750 Volvo incentives rolled in. #1 is at 8.36% pre-incentives.
I am in the market for this exact vehicle and rapidly came to the conclusion that it’s better to buy / finance rather than lease for the following reasons:
Volvo no longer allows third party lease buyouts or transfers. You are stuck with the car for three years and on the hook for all the payments, regardless of what might change in your life.
Leasing doesn’t pass through the $5,419 federal tax credit
Selling price is better when you buy. Tomorrow I am picking up a new $76,xxx MSRP unit for $66,xxx + TTL, including the $1,133 CCFR but excluding the Federal tax credit.
You can get better financing via margin loans on investments (~1%), and you don’t have to lock up $8-10k in MSDs to get it.
It has always been like this. You could never sell a Volvo without negative before, so you were stuck with it for 3 years. People are complaining now about Volvo’s policy change only because the crazy used car market gives them potential equity.
Currently - not on XC90, but they did before and will do again in the future.
Not always. There is $3,750 cash on lease in this case, in addition to $1,133. How much is it on financing?
You get the same incentives for financing. $2750 Purchase bonus cash and $1000 APR bonus cash
EDIT: what I just wrote is incorrect. These two are not stackable. Purchase would qualify for only $2750 bonus cash which is $1000 less than leasing. However, it’s not clear to me whether a dealer would offer the same pre-incentive discounts for leasing and purchase.
Just wanted to share that I super appreciate this forum. It is amazing and I have learned so much. I took @mllcb42 advice and watched some more videos and ran Lease Calculator on #1 and #2. Also got the residual and money factors and incentives for May from Edmunds. Here is where I landed:
#1) inscription expression 7 seater - i calculated a monthly payment of 558 including tax/rent/depreciation with $5661 drive-off. I assumed pre-incentive discount of 10.5% based on other forum members feedback and 3500 down payment for 36/10. For incentives I included 3765 lease bonus and 750 A plan ( no clean fuel since that is after the fact). Current dealer quote to me is 3500 drive-off and 756 a month. and as with all quotes, information is missing or mixed together so not sure I am apples to apples. Regardless gap is pretty wide between calculator and quote.
#2) inscription 7 seater - i calculated a monthly payment of 705 including tax/rent/depreciation with $5869 drive-off. I assumed pre-incentive discount of 10.5% based on other forum members feedback and 3500 down payment for 36/10. For incentives I included 3765 lease bonus and 750 A plan ( no clean fuel since that is after the fact). Current dealer quote to me is 3500 drive-off and 916 a month. and as with all quotes, information is missing or mixed together so not sure I am apples to apples. Regardless gap is pretty wide between calculator and quote.
For #3, I am not sure how to calculate as I couldn’t find any benchmarks of what a pre-incentive discount would look like for a demo with 3.5K miles. dealer is quoting me 3K down, 10 MSD, 893 a month. I am thinking for a demo with this many miles i should be asking for 15% pre-incentive discount at a minimum but not sure if they would think i was batty proposing this.
@hedgefundie you are correct to also consider straight up purchasing as you can get the federal tax credit (I owe every year so this would help me). Get the flexibility to sell should another pandemic surge result in more lockdowns and I cease commuting to work. Just not sure if a dealer would be more aggressive in discounts with purchase vs. lease. I will ask my dealer to quote me today for purchase
Lastly, June is just around the corner. Roll the dice another 3 weeks and see if the federal tax credit comes back as a pass through incentive to consumers? or will incentives get worse as dealers run out of cars due to chip shortages and won’t be as open to negotiations? @Ursus what do you think?
Theoretically leasing offers $1k more incentive than purchase this month. But there is a $1k lease acquisition fee that cancels out this savings, and it’s also not clear to me whether a dealer would offer the same pre-incentive discount for leasing and purchase.
Yes, several thousands of dollars of tax that is canceled out by the federal tax credit.
I think in the end it’s a largely a wash between buying and leasing. It comes down to how much you value the flexibility of ownership vs the depreciation protection of leasing.
My hunch is that their pre - incentive discount is not close to 10.5% right now. So I’ll need to either be ok with paying more or hope things get better in June. But by the sound of things on this forum, it could also get worse.
