It must be missing a decimal place likely .00218 = 5.23%
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No.
Buy rate is the mf set by the bank.
A dealer can mark up the mf above buy rate. You need to determine buy rate (which is what you get when you ask Edmunds for the mf) for the current period so you can set your target deal and compare dealer offers.
MFx2400 gives you an approximation for the mf expressed as an annual interest rate. If your question is âwhy is .0218 so highâ, it has most likely been transcribed incorrectly.
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ok I asked Edmunds on the forum, but seems hard to get an answerâŚ
It is not difficult to get an answer. They answer everyone who asks. It may take a few hours though.
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And itâs Friday evening⌠Edmunds mods may be on eastern time 
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What trim and FWD or AWD Iâll pm programs.
Iâm waiting on a zoom call from the U.A.E so take your time⌠dead inside
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AWD or FWD
XC90 T5 Momentum 7 Passenger FWD****
Okay, I have gathered all the eggs, to put a deal together, so what do you guys typically do? Since I know the money factor is BASE MF: 0.00158 Residual for 36/10k 59%- do I just straight up ask for that? Originally the dealership quoted me at .00218.
How do you gracefully/firmly ask for that a fair price after plugging it all into the calculator?
Use the calculator. You already know the MF, the MSRP, that 9-10 percent off (pre-incentives) is reasonable, and the incentives (which typically go as âtaxed incentivesâ in the calculator. Plug all
That in and youâll get your target price. Then you can see what the number would be with 1.5 percent tax or 6.5 percent. I would then tell the dealer âhi my name is ryann, Iâm interested in this particular xc90, stock number ABC123â. I am willing to pay $xxx per month with xxx at signing (either 0 or just first month is reccomended) including (or excluding) tax. I qualify for A, B, and C incentives and my zip code is 12345 (used to check your specific tax rate). Please let me know if this is agreeable. If so we can sign this deal
Immediately.â Basically make sure that all info they need (your zip code, incentives you qualify for, the exact car you want, and what you are willing to pay) are all in the offer and that you present it firmly and let them know you are ready to sign. They may not make a lot of money, but Itâs sure money if they say yes to the deal
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I donât think that is right in Texas - because you are already paying sales tax on the full selling price of the vehicle (unlike other places where sales tax is on the monthly payment) incentives are not also taxed.
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Thank you for all of your help! Will keep you posted!
So, I sent the email, told them I am looking for a start of around 10% off MSRP before incentives etc.
He sent this back:
âThanks for your e-mail, I am happy to assist to get yâall on a new Volvo, as you know Volvos are made in Sweden, import cost, tariffs, Covid, affect prices and availability, profit margin on new vehicles is thin, is not like domestic vehicles that sell millions of cars a year with government incentives. I am attaching the invoice so you can see that we are a very different dealership, very transparent, we know all our clients donât like to negotiate and waste time, we want to make sure that you stay with the Volvo family for a long time, that is why we want to treat you and your family with transparency.â
Then he included the invoice which showed the invoiced amount of $49993- which is 5.3% off of MSRP of $52890.
Where do you go from here when negotiating?
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What does âlooking to start around 10% offâ mean to you?
Perhaps we werenât clear before. If youâre going to make an offer, be specific. Saying âI want to start at 10% offâ leaves a ton of ambiguity. Is that at buy rate? How much in add ons/doc fee? Which incentives are you referring to?
He originally quoted me 4k in incentives(before I did my research and according to Edmundâs thereâs $2250 available in incentives. IDK, when I build the car on volvo I saw no incentives that I qualified for with my zip. So since heâs sent the invoice and shown the invoiced amount of only 5.3% off MSRP what does this mean?
Hereâs what I said- used a template I found on another LH thread.
Thank you for taking the time to meet with my wife to see the XC90s.
We are looking to lease the XC90 T5 Momentum that we have been test driving.
VIN:
I would like to work with a price that is around 10% off the MSRP of $52890 before any incentives are added.
I am not interested in putting any money down other than acquisition and government fees.
Our credit is great so looking at the base Money Factor of 0.00158 should be our ballpark.
Could you please send us a simplified deal sheet and we can take ownership when we return it back to the dealership tomorrow.
Looking forward to working with you!
I wouldnât even try to move forward with anything until youâve sorted out why there is a difference here.
What is your zip code?
78748- he originally put in customer cash $775 and total rebates : $3250
Customer cash isnât an incentive, itâs cash from the customer being paid up front; a downpayment.
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Got it. And the $3250?
