MSRP: 81,765
Dealer discount: 8,765 (10.7%)
Selling price: 73,000
Rebates: 14,000
MSDs: Maxed at 8,500
Term: 24/7.5
Residual: 69%
Sign & Drive (0 DAS)
Went back and forth between two local Bay Area dealers and this one came out on top. I’m happy with the capitalized cost but I’m still not sure what money factor I’m paying. Can someone help me out with a calculator? Depending on what the interest rate turns out to be, I may buy it out immediately.
.00385 is the mf used here
Yikes. Early buyout it is then.
I would think long and hard about that one.
Youre going to lose way more money in extra depreciation when this doesn’t hold its value and the extra sales tax you pay is going to eat away most of the difference between interest and rent charge.
Unless your comparing buying it out at the end of the lease vs buying it out now and holding it for a long time, doing an immediate buyout is just going to cost you a ton of money.
If I buy it out immediately I’ll pay the $56k residual + $6k depreciation + 9.5% tax = $68k
To do the buyout I can get a margin loan in my brokerage account for 5.5%. That’s tax deductible so the effective rate is only 3%. So $68k * 3% * 2 years = $4k in interest cost.
Right now Carvana is showing 2023 T8 Ultimate models listed by dealers for $62k. Let’s say I can sell mine private party for $55k.
So that’s $68k - $55k + $4k = $17k total cost of ownership if I were to buy out immediately and sell two years down the road. Identical to the total lease cost.
So you’re right! Keep the lease and the option value.
I think you are drastically overestimating this.
Carvana just spit out an offer for $49k so I don’t think $55k private party is unreasonable
The 23s dont have to compete with a 23.5 refresh
We’ve through this before with the 22 vs 22.5 which actually had a huge functional improvement in the battery range, unlike the cosmetic differences between 25 and 25.5
The 22s aren’t appraising much different from the 22.5s
Which is what most consumers notice
For what it’s worth my 22 (pre refresh and battery enhancement) just appraised at $44k by CarMax (with in-person inspection) with 25k miles and almost exactly 3 years old. It’s in good condition, but certainly not perfect. Was surprised it was that high honestly.
Original sticker on it was ~68-69k. Equivalent to the plus model now (except it also has HUD) but they were $8-10k cheaper starting back then.
Welp. Just noticed a huge dent on the car. Cautionary tale to others - don’t leave the dealer without giving the whole car a close inspection!
Nice I’m about to bring my 21 T8 Inscription to CarMax for an appraisal. 43k miles, I’m hoping for $37k. Was $68k OTD new.
The risk in this is very high. What if you get in an accident? There goes the entire plan.
This isn’t a bad deal by any means considering CA tax. Ride the lease out. You don’t want to own a depreciating asset that’s about to get refreshed.
The PP market above $30k or so for “normal cars” is very illiquid. Hardly anyone has the cash or knows how to finance outside a dealership.
It’s easier to sell a Ferrari for $200k.
I’m itching to give CarsandBids a try
Doesn’t seem like they’ve accepted any XC90s except older ones that could sell in the 30s or less
You’re onto something there. The only trim they seem to accept is R-Design which doesn’t exist anymore?
