New to leasing, but looked on this site for a bit to try to learn as much before going into the dealership. Overall love the car but don’t think I got the best deal and wondering if people could provide input into what I probably did wrong. Tried to get the calculator as close as I could but still a little off. Also this was a couple months ago.
MSRP: $72,675, discounted to $70,197
Rebates: $12,000 (I think $9k in leasing rebates, another $3k in Costco, affinity, and I think one
other but can’t remember)
Residual value $40,698 or 56%
money Factor: .00256
No MSDs
Nothing down except first payment
Cost per the contract is $852.61+87.39 in taxes ($21,371.21 in total depreciation, $9,322.75 in interest/rent charges.
36/7.5k
Also included the “road hazard” warranty which I believe increased by monthly by $40. This was excluded from the calc. On my contract it’s listed as $1995 but again, only increased by payment by $40 so technically closer to $1,440 I guess. Was told this could be removed at any time but I’m unsure if it can honestly.
I’m seeing a lot of deals for a lot less so just wondering what I could have done better. My guesses are a better discount off the MSRP, maybe done some MSDs although I’m thinking of buying out the lease in early 2025 when potentially interest rates decrease a little more.
Also is there a leasing schedule calculator, that would roughly show the buyout at the end of each month? Trying to put something together and assume rent/interest is weighted more in the beginning of the lease period like a mortgage, but not sure how to go about it.
Leasing doesn’t amortize like a finance loan or mortgage. Interest (“rent charge”) and payment are constant, which is actually beneficial if rates are high and you want to pay it off early.
Well, on the positive side, some salesperson’s family looks like they’re going to be putting some food on the table this month.
On the negative side, you paid over MSRP (assuming this is a black edition due to RV, so buy rate MF is .00197) for an outgoing model year XC60. You then bought $2k of F&I, which I strongly advise you to cancel immediately b/c it’s a waste of money.
You are paying likely ~$200/month more than you should be for this car, so you left $7-8k of meat on the bone here.
There are several of us who offer basically pre-negotiated deals on the same car for hundreds of month less. For some of us, that requires a drive up from DC to NJ. The last time I went down to DC, to see the rangers sweep the caps this year, that took 3 hours. There are some of us who don’t even charge you broker fees on Volvos.
Volvo would apply the MSDs to the payoff, but whatever rent charge you pay is forever.
Cancel all the shit Finance sold you tomorrow. Dig out the pamphlets and find the phone numbers.
You also don’t want to buy this XC60, just enjoy your lease**.
**If by some miracle the dealer calls you (from their boat) to come re-sign your contact because they needed to fix something, bring both keys with you to the dealership and thank them for the extended test drive.
Thank you for all the feedback (especially @aronchi) and I appreciate the recommendations.
My intention was to buyout this lease anyways so I think I’m hearing it should be done as soon as possible, after cancelling the F&I? And overall the major issues with the deal are not negotiating more on the agreed upon value and MF at the end of the day?
I wouldn’t buyout the xc60 unless you plan to drive it until the wheels fall off. The car depreciates like mad. I suggest cancelling the warranty which would lower your payment by $60 per month and drive the car for 2 and half years then use Volvo 6-month pull ahead program to get out of it. Try to negotiate a better deal next time. Everyone makes mistakes their first time leasing.
With my person experience with Volvos (leased 2019 XC60 and purchased CPO 2019 XC90), without a warranty, either OP will also be feeding the entire service department or the wheels will fall off before 100k miles
For reference, I bought my CPO XC90 in 12/2022 with 48k miles… It currently has 90k miles. CPO warranty has paid out over $13k so far. Outside of regular maintenance costs one of my headlights cracked… ended up costing over $5k + $1500 in rental car costs. Windshield was $1600 (but I have Volvo’s tire/wheel coverage that covers windshield replacement too). Depreciation is fun too – original MSRP was around $79k, I bought it CPO for $41k, now it’s worth less than $25k
