Noob here, previously got burned when I asked if I could use friend’s Costco membership .
I’ve been reading up for over a month now to educate myself prior to sitting down to negotiate. Got a few questions that I would really appreciate if someone would answer. I’ve already combed through many threads to try and find a convincing answer but couldn’t find any.
First things first, I’m looking at a Volvo XC60 T5 Inscription with Advanced package, 36mo, 10k miles/yr. I work at a hospital in Ohio so the $2k healthcare employee bonus is all that I’m eligible for (No loyalty or Costco). I got the MF (0.00131), RV (61%) and Volvo lease cash info ($750) for this trim from Edmunds. This is the pricing sheet from the dealer’s website:
a) You can see that dealer price page has a breakdown for Total Manufacturer’s Suggested Retail Price (MSRP) that includes a Destination Charge of $995. When I open up the LH calculator, the Acquisition Fee section auto-populates a $995 value (I’m assuming this is standard for Volvos). Is this the same as the Destination Charge? If so, while entering the MSRP in the calculator, should I be using $55,445 less $995 = $54450?
b) If the dealer prepares a lease quote that uses different MF, RV numbers than what I got from Edmunds, can I ask them to revise based on the numbers that I have?
c) I saw many posts where the experts have asked if the MF used in the calculator is a ‘buy rate MF’. Can someone explain what this means and how it is different from (or similar to) the MF as obtained from Edmunds. I’m assuming this has to do with the lower effective MF when applying MSDs?
d) I’d also really appreciate your thoughts on a sample set of numbers that I’m going to approach the dealer with. Link to calculator. A median % discount off MSRP that I saw in the posted XC60 deals is close to 12% and I understand that the 15% I’ve used in the calculator may not be achievable.
e) What additional insurance (or any other) plans should I expect the dealer to push on me and which ones are worth signing up for?
Destination charge is the shipping fee that every car in the lot has (it will be on the window sticker). Acquisition fee is a lease charge to initiate the lease.
The base MF is the number Edmunds will give you for a particular trim/model. It can be marked up by the dealer.
The RV is set in stone, but if it doesn’t match it’s likely because the dealer has it under the wrong mileage or term.
15% might be a good number to start at even if they don’t bite. That way it seems more reasonable to get 12-13%.
As far as F&I products, you’re gonna get a varying amount of advice here. I personally don’t get any, some people like the piece of mind, but rarely these products are worth it (that’s how they make money off it).
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