Most Subarus aren’t. Unless there was a big tax advantage to lease vs buy I would purchase (like I did, even though the taxes backfired on me later).
Does anyone know about IL tax benefits (leasing vs buying)?
The MF is 0.00157 (3.77%) and the advertised finance rate is 4.9% APR.
I’m 99% confident that I will not be in this car in 36 months and wanted the lower monthly payment but if there is a great case to finance over lease I’m all ears (just never done that before).
Chase/Subaru currently allows 3rd party buyouts so that certainly gives you flexibility, as those of us who leased WRXes recently can attest.
Companies are advertising 0 and 0.9% APR financing again, so I’m not sure why you’d spend $4,300 on combined rent charge plus acq fee (plus disposition, if applicable)
Especially on a car you’re so unenthusiastic about
Hello,
I have narrowed my search to three vehicles:
- Volvo XC60 Ultimate
- Volvo S60 Plus
- Subaru Legacy Touring XT
*quick plug for ratefinder - I found it much easier than using Edmunds forums and allowing me to quickly narrow down vehicles I liked)
This question is about a ‘23 Volvo XC60 B6 AWD Ultimate Loaner/Demo
Region: Midwest
MY: 2023
Make/Model: Volvo XC60
Trim: B6 AWD Ultimate Dark
Term: 36 Months / 7.5k Miles Per Year
Status: Loaner/Demo
MSRP: $63,735.00
RV: 57% (ratefinder)
MF: .0.00133 (ratefinder) 3.19% APR
Adjusted MF with 10 MSDs: .0.00083 (LH calc) 1.99% APR
Advertised Selling Price: $56,776.00
% from MSRP to Advertised Selling Price: 10.92%
Taxable Incentives: Costco ($1,000), VCFS Lease Cash ($1,000) = $2,000
Doc Fee: $324.24 + Electronic Filing Fee: $35 = $359.24
IL Title & Reg: $306.00
Pre-Tax Monthly: $605
Monthly Payment: $648
DAS: $2,543
Refundable MSDs: 10: $6,500
Total Lease Cost: $25,658
Effective Monthly Cost: $713
In the marketplace I found a broker advertising a new (not demo/loaner) ‘23 XC60 B6 Ultimate for $673 pre tax on a $61k MSRP vehicle for 36/10. When I adjust to 7.5k/36, my tax rate, my region’s MF, RV and fees and a -$599 broker fee in the trade-in section (not sure if this is logical but I’m subtracting some savings) I get a pre-tax of $676 and an effective monthly at $711. A broker in my region has a $63k MSRP XC60 B6 Ultimate for $689 pre-tax monthly at 36/10.
Given this anecdotal information. Does anyone have guidance on how much additional discount I should target for the loaner/demo that I am looking at?
Thank you,
Clearly not. 10% off would be $6k off so 54,xxx
I think I got that MSRP confused with a diff vehicle I am looking at and transposed it incorrectly from my notes Adjusted to match calc link $63,735.00
You may as well get a new one. @autocompanion is doing 10% off new XC60s. You’d have to ship it, but his region has $500 more in lease cash too.
2 Likes
Based on my research I feel that I can get 10% on a MY24 B5 Ultimate and there are many available near me. However, my thought was that there are still plenty of new MY23 and loaner/demo MY23s around. My specific question was how much should I target for those. My hope was those could be discounted much more than the MY24 new.
Am I mistaken that a dealer would be more likely to heavily discount a MY23 loaner/demo than a MY24 new in stock or in-transit vehicle? Using another broker’s sheet I see a '23 B5 Ultimate demo discounted at 15.28% - that would make me think that 15% is a reasonable ask but I don’t know the differences of how a broker may be able to get that price vs myself.
For reference, I did check out autocompanion’s site (great site BTW) and I all I saw were MY23s and I got almost the exact same calculation as I do in my LH calc I posted above. Autocompanion has effective monthly at $722 and LH calc at $713.
Thanks,
That’s pretty much the same thing that you have but it’s for a brand-new car vs. a loaner. Brokers get the pricing we have based on volume. You can’t assume you can get it just by going to a dealership. The 2024 XC60s are just hitting the lots. I don’t see brokers doing 10% on those, so I wouldn’t bank on that.
Thank you for the help.I will definitely keep that in mind if the loaner/demo option doesn’t prove to be worthwhile. My hope was they’d be very motivated to get rid of those right now and I could secure a discount that would make not getting new worth it. At 10% off the loaner it’s probably not worth it compared to new. The question is what’s the best I should target on the demo/loaner.
1 Like
Aren’t XC90s cheaper than 60s now?
It depends on the location and the trim. The 2024 XC90 has the higher residual, but we’re mostly sold out of them. If OP wants some features that are in an Ultimate, he’s going to pay more for an XC90.
@nuwildcatfan: you’re taxed up-front in IL, not on the monthly.
A 24-month lease on a core would be about $25 less, but I know you’re not a proponent of 24-month leases. This is a core, not an ultimate.
On an Ultimate, he’s around the same price.
However, I also respect that not everyone wants the larger car, too.
2 Likes
Thanks for correcting my calc work. IL wasn’t listed in the tool so I was doing tax on monthly incorrectly (that’s my bad for not verifying)
I’m interested in the Ultimate trim solely for the ventilated seats. I’ve never owned a Volvo before but in other cars I’ve really enjoyed these (always ventilated never cooled to my knowledge) in the summer months.
I’m not opposed to a XC90 although my wife would prefer I go with the smallest footprint for the sake of garage space.
Is the groups’ recommendation that I should pursue a XC60 loaner at an increased discount? A new xc60 or something different like the xc90 to get the best price for the vehicle.
I’ve never been a huge fan of ventilated seats, but I can offer my opinion on a Volvo with them vs. without.
I live in NY, so while it can be colder there in the winter, the summers are fairly similar. I’ve had a Volvo with a black interior without ventilation - not a problem. I have an S60 now with the Amber interior without ventilation and an XC60 with Amber nappa with ventilation. It’s a nice thing, but is it necessary? Ehh. I was just telling a friend the other day [who is a total snob about this stuff] that the seats in the XC60 are more comfortable, but it could be because the car is 3 years newer and it sits higher, but it could be because of the adjustable side bolsters. However, the nappa leather has no grip compared to the pebbled leather, and I slide around more. The XC60 is parked on the roof of my building’s garage, so it is getting hot this summer, and while the ventilated seats are nice, I don’t think they do much more than air conditioning in general.
That being said, I wasn’t a fan when Volvo switched over to core/plus/utilmate for MY2023. I don’t need or want everything on an ultimate, but I want the more comfortable seats, including the power leg extension. I don’t like that you have to go up to Ultimate to get that or the Amber interior, but that’s me. I’m just offering my two cents.
2 Likes
Thank you for this - it’s super helpful! I think some of the features of the ultimate are nice but not necessary.
Do you use the app to remote start and pre cool the car down?
How does the blonde interior hold up? I do like the blonde interior but with kids occasionally in the car or my blue jeans I’m concerned about the seats getting very dirty.
I never use the app for that. I’m not much of an app person.
I don’t have the blonde interior, only the amber. I have denim stains on my amber, but they come out decently easily with leather cleaner. Blonde would probably be worse. I did a basic ceramic coating on mine that I should probably touch up, but who has time? Haha.
I had the blonde on my s90 and it held up great. Cleaned right up whenever it got dirty
1 Like
The app is a hot mess. It was good with sensus not now with android OS
It’s the best color they have. Car just feels more live. Doesn’t get dirty as well. Black sucks
1 Like
What discount target should I be at for:
- MY23 XC60 demo?
- MY24 XC60 new?