Helped a friend sign a XC40 lease. Was a top of the line Ultimate trim with the protection package, pixel headlights, and trunk spoiler. Shopped aorund most of the dealers in SoCal and they all wouldnt budge from about 4% off MSRP until a fellow leasehackr pinged me on the side with a referral. Not naming the dealer for now.
MSRP: $62545 Selling Price: $57000 (8.87% off MSRP) Term/mileage: 36mo, 7500mi/yr Incentives: $7500 EV Credit, $3500 Regional Lease Credit, $2500 Costco Credit, $500 A-Plan Residual: 49% MF: 0.00195 (buy-rate, but 0.00145 after MSDs) Payment:$437.42 Drive off: $2000 (CVRP rebate), $437.42 first month payment, $4500 MSDs, $595.75 DMV license/registration, $604.67 sales tax on cap cost reduction, $899.24 (towards the $995 Acq. fee and $85 doc fee), $33 E-File fee Leasehackr Score: 11.3
They qualify for CVRP and will be getting a $2K check back in the mail.
Yeah, it aint great. Which is probably why Volvo gave it the $3500 extra lease cash and NOT the C40 (which is 54% for the same). I quickly ran the numbers and seems like it does narrow the gap between the two. 24 months is the sweet spot for the XC at 58% residual, but the CVRP rebate requires a minimum 30-month lease to qualify. Plus my friend preferred the XC40 over the C40 anyway.
so your effective monthly would be $563? what does the $4500 msd get you? I am currently negotiating at $486/month for a 24 month lease with 10k/month with $1500 DAS (that includes all fees, taxes, and first months payment), so effectively $548.5/month. I asked dealer about msd and he strongly recommended against.
If you want to learn about the benefits of MSDs, I suggest you research some of the resources on this site as it’s been well discussed. In short, Volvo gives you a 0.0005 MF reduction (1.2% interest rate reduction) on your lease if you max out the MSDs, which are refundable at lease-end. In my deal, you’d save about $40/month in lease payments or $1426 over the term.
By comparison, my CU’s 36-month CD rates are 3.20% APY for the same $4500 in MSDs. At the end, you’d bank $445.97 in interest before taxes.
Dealers, especially front line sales (i.e. not sales managers), are very ignorant of the math behind leases. Most are just middlemen that shuffle paper between the sales managers and the customer. They are there to find out which inventory car you want and are detached from the numbers. Sales managers OTOH are very good at numbers, but often dont know much about the car itself in terms of features, options, colors, etc. So I’d be wary of their recommendations.
