“Amateur” leasehackr here–I’ve gotten pretty good deals in the past, but wanted the hive-minds help with working out a really good deal on a loaner 2018 V90CC T5 that ticks all the boxes for me.
MSRP: [$55,900]
Selling Price: [$45,900] (no idea what incentives this includes, but they will give me an additional $500 of for loyalty.
Months: [36]
Annual Mileage: [10,000]
MF: [.00050] BEFORE MSD’s–will maxing out MSD’s really give me an effective 0% interest rate?
Residual: [52% ($29,192.40)]
Total Due At Signing: Potential MSD’s + whatever is beyond the $500 loyalty rebate for 1st month payment (hopefully nothing!) +
Doc fees.
Monthly Payment (excluding tax): [$542]
This car has around 5000 miles on it and I really think I should be able to get it down some more, but just not sure where to put the pressure. Lease calculator is telling me to target around $380 including taxes, but that seems crazy. How would I get it there?
Thanks so much all, I’ve learned a ton from this forum.
I believe the dealer gets $2100 for punched loaners (@ursus or @nyclife is that right?) and there is an adjustment on the residual. Incentives vary regionally. I would be looking for a 15-20% discount BEFORE the punched loaner incentive and any volvo incentives.
You can quickly tell what incentives are available by building your car on the volvo website and then going to the payment calculator and entering your zip code. Let us know what those incentives are and we can help you back calculate the selling price.
Looks like there is $3250 allowance; if you figure the $2100 incentive to the dealer for punching the car, that’s about $5350 of their discount to you. Looks like an 8.4% discount on the sale price. There is also a residual adjustment down for the 5000 miles on the car, which actually lessens the net impact of the discount.
Personally, I’d need much more discount to make this worthwhile for me.
EDIT: The $3250 allowance is showing for me here in Seattle; thanks for the clarification @ursus.
At the end of last month, with a-plan, I was looking at about $500 a month, after tax, for a 24/15 on a new V90CC with a $57500 MSRP in Southern California, but we had the same $3250 allowance.
The current a-plan rules change that, but I would expect a demo to go cheaper still.
So first of all–thank you to all who have chimed in so far, the amount of knowledge here is really staggering and I am grateful.
I’m in the DC area, so for better or worse, it’s only showing a $750 incentive (plus loyalty) for my zip. So I don’t think I can count on the $3260 (am I correct to assume that the incentive is based on where the car is garaged, not purchased? This is going to be purchased out of state, FYI).
Also, another question–is it really worth it to put down the MSD’s? By my calculations, a .00050 MF equals 1.2% interest, which over the life of the 36 month lease is around $200 (.00050 x 2400 = 1.2%. 1.2% of $16,708 is roughly $200). So is it really worth tying up all the cash for $5/month off the lease? Or am I majorly off base (very possible…)
So if we assume a generous 20% off due to the loaner status (approx $11k) that brings us to $44,900. Then we’ll look for anywhere from $750-$3250 off that as a good final sale price?
So rock bottom ($44,900-$3250) would be $41,650, which with interest (and before tax) would come to around $350/month.
That’s a deal I’d do. Thoughts on if this is remotely possible?
You’re doing your MF calculations wrong. Assuming you adjust the money factor from .00050 to .00004, a .00045 delta, your monthly savings would be (55900+45900)*.00045, or about $45. That’s $1650 across the life of the lease.
Same here, it will be my top pick for our next family car if I can lease a T5 in the low to mid $400 range for 15k miles a year with only 1st month due at signing…
The regular V90 is also not limited run, but special order only. However, a lot of dealers order them and keep one or two in stock, or at least in areas where wagons actually sell (like SoCal).
V90 (or new V60) is my top pick for my next car if I can get the lease to start with a $4.
The V90 is nice, but the incentives are just not there. Hard to justify the extra $150-200 a month over a V90CC for comparable equipment for it to be 2 inches shorter.
Ahh you are right, this is from the A-Plan website:
“Ineligible Products
Visit the www.aplanbyvolvo.com website to review current vehicle eligibility.
Retired Service Loaners are not eligible for this program.
Retailer Demonstrators are not eligible for this program.
Vehicle eligibility is based upon purchase date of the vehicle, not on the PIN generation date.
Volvo reserves the right to make vehicles ineligible at their discretion.”
But then under the eligible products it says:
“Pre-owned vehicles are eligible for this program, refer to A-Plan sales bulletin for specific rules.” So I wonder if there is a workaround to get A-Plan bonus on a service loaner somehow…
I asked the dealer–if it’s registered CPO than it IS eligible for A-Plan. But that costs a decent amount (I assume, at least to the buyer) so it might all come out in the wash…
