Please check this 2021 Volvo XC60 T5 Momentum deal for me


Hello Friends,
Working on two deals with the local Volvo dealer here. Can you have a look and let me know if these are good deals? Thanks in advance. Unfortunately, I couldn’t find out the pre-incentive sale price and other such breakups.

The first one is FWD.
MSRP: $47410
Sale Price: $39872
MF: .00051, Residual: 57% (Edmunds verified), 10 MSDs
36 mos, 7.5K

Monthly payment with tax: $437. The dealer is insisting on a down payment of $1400. According to them, it covers Acquisition Fee, Upfront Taxes, First month payment.
I’d have preferred not to pay anything but the first month payment, but they are not budging. Not sure how the down payment can be a round number if that’s the sum of those three amounts. Unable to get a clear answer. Apparently that’s how the system works. Is that so? Will they mention that on the agreement what the Down Payment consists of and also the fact that I’ll only pay the monthly payment of $437 thereafter for 35 months? I mean if I am not paying some of the fees upfront, then they’ll have to be rolled into monthly payment, right?

Put the above info into LH Calculator and the number came pretty close.

However, I am more interested in the AWD one.

MSRP: $48960
Sale Price: $40650
MF: .00089, Residual: 57% (Edmunds verified), 10 MSDs
36 mos, 7.5K

Monthly payment with tax: $459. The dealer is insisting on a down payment of $1600.

The pre-incentive discount is the most useful comparison tool you have here. Edmunds should have given you the incentives when you requested rv and mf. Back them out of the selling price.

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It’s possible to do just first payment or sign-and-drive, especially with MSDs. It’s not that you don’t have the money, you are choosing not to put anything up front. That’s exactly what I did on my XC60.

I’ll assume your credit score is fine: do you have prior auto loan/leases? Did they run your credit yet or they are just saying they want upfronts?

Yes, they mentioned $1500 lease cash & the $1250 Costco. According to the dealer, they are already included. In fact that sales price their website quotes (I am getting almost $2000 lower than that sale price) is subject to all the ‘available specials’ you qualify for. But I do not qualify for all of them like loyality, military etc.

Yes, I am aware why people don’t put any money down and I’d have preferred to do that too. But they are not budging. Also probably because it’s year end and they are the only dealer in my city and cars are selling pretty fast as I’ve been checking their inventory regularly for the past few months. Yes, my credit score is excellent, no existing car loans, never leased before. I’ve not been to their office yet, so they haven’t run my credit score yet. Just been there once last weekend to test drive one and it was quite late, close to their closing time. So the sales guy never talked money, he was really nice in that sense.

This doesn’t make any sense. It doesn’t the dealer how much you put down, unless the bank is requiring it.

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That is probably why they are asking for at least taxes and tags paid. And: it’s usually possible to change that up in finance if your credit will support it.

On the AWD you’re at $5560 pre-incentive which is ~11%. On a new 2021 that’s pretty good. Those should be broken out in your calculator link though since it can adjust the taxes.

Can you show me how did you get to the $5560? If I subtract this from MSRP, my Sale Price will be $43400. If I then put the $5560 below as Taxed Incentive, my monthly payment becomes too low than what they are quoting. Possibly I am doing something wrong here. Can you help?

Ok, got it. What I meant to say was not necessarily related to down payment. I meant they won’t negotiate too much to get me to my desired price as they are selling fast.

$2750 in incentives

$48,960 - $40,650 = $8,310 total discount - $2,750 incentives == $5,560

I can back into that payment with these numbers by bumping the MF (you said you verified with Edmunds which is :+1::+1: but did the dealer tell you they are using that Mf? With an 11% discount I’d expect it marked up)

Someone else can check my math, I think the incentives are bucketed correctly but I didn’t double check.

There are plenty of XC60s at the port(s) if their stock is low. How fast they are/aren’t selling likely has no impact here, irrespective of what they tell you.

Thanks a lot. You used $2000 for Untaxed incentive, I think it’s $1500 which is the lease cash. So with that, I get to their number with MF of .00098. For the dealer zip code, it’s .00089, so about $7 cheaper monthly payment.

And this is for the FWD where they’ve used MF of .00062.

I also noticed that they’ve mentioned $5000 MSD deposit for both. Shouldn’t it be $4500 if the monthly payment is $437.

So at the end of the day, will you call these good deals? if not, what number should I be targeting?

You say your credit score is great do you have any Auto history have you ever had any auto loans before that’s what banks look at when applying for a lease or loan as well as DTI. overall credit picture?

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Back in late 90s, had taken auto loan while buying my first car, an used Acura. Nothing after that. The reason I say my credit score is in the high range is because I can check it through my bank as well as my credit protection company. And also, as I’ve said, I am yet to meet the finance guy of the dealer. So he doesn’t know and haven’t run my credit.

90s That would be off your credit report you have no recent Auto history for a bank to judge you on.

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Update: The sales guy just texted me with a new number on the AWD one. The new monthly payment will be $446 instead of $459, with $1600 still as down payment. He’ll send over the details tomorrow morning. Apparently, the finance guy was using the wrong incentives (for 2020). I’d assume the incentives are more on the 2020 model than the new one. The new calculation matches exactly with LH calculator.

What do you think folks? I’ll post another update tomorrow morning once I receive the details from him by email.

What is the pre-incentive discount with the correct incentives pulled out?

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He only mentioned the MF which was marked up originally as you can see from the earlier posts on this thread. The incentives he didn’t talk about. I had told him that I am only interested on the AWD one (insurance premium as well as the Govt. fees are both significantly lower on that one apart from pre-incentive price which was at ~11% compared to ~10.1% on the FWD one. Plus a better ride). So he was simply working on getting the monthly payment down. The $448 is with tax which is 8.7%.

11% pre-incentive at buy rate is a solid deal. I’m having trouble following what of the numbers you know vs what numbers you’re speculating about, so I’m not sure if you’re actually at 11% pre-incentive at buy rate here or not.

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True. I know the MSRP and the Sale Price from the dealer. From Edmunds I know MF, RV & the $1500 lease cash. They didn’t even mention the Costco discount. But I know that $1250 is still good till 01/04. So based on this, jeisensc came to that 11% pre-incentive number if we simply do the following:

$48,960 (MSRP) - $40,650 (Sale Price) = $8,310 total discount - $2,750 incentives == $5,560

Is there any other way we can figure it out? How does the LH Calculator values look to you assuming we may not get more information?