Signed XC90 T6 Mom - Please analyze my deal, feedback appreciated

Year, Make, Model, and Trim: 2020 XC90 T6 Mom
MSRP: $62,595
Monthly Payment: $590 w/ tax (9.5%)
Drive-Off Amount: $3,500
Annual Mileage:10k
MF:.00141 I think
Residual: 61%
Incentives: Costco $1250, Loyalty $1500 , Volvo $2000
Region: SoCal
Leasehackr Score: Need Help Filling this out.
Leasehackr Calculator Link:

I know this is not a great deal but I would like some feedback and possibly the Calculator filled out for me.

I shopped around for a month but than my work schedule became hectic plus my wife is expecting soon. I simply ran out of time, which was my fault. Please let me know what you think of this deal. Hopefully myself and others can learn a little something.

Beautiful Vehicle BTW. I got the Crystal White with Blonde interior and two kids to try and protect the interior from :laughing:

Have you read through the calculator FAQ? There are step by step instructions for filling it out based on a lease contract.

They charged you .00150 for the mf. As for feedback, you probably left $2-3k on the table.

Thank you for the replay.

I had a feeling the MF was marked up, I was coming up with $526 but was not sure if I was using the calculator correctly.

What did edmunds give you for buy rate?

You’re double counting your incentives here. You have them both itemized and included in the sales price. You need to adjust the sales price to be pre-incentive if you’re going to itemize the incentives below. That’ll give you the actual pre-incentive discount % that is good for comparing.

Here is the corrected calculator:

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Don’t worry about bygones. Everyone has their priorities at any given time.

I agree, I feel so relived now. Next time I’ll have a better plan or action

Nice car. Not a terrible deal.

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Congrats on the new additions! Good luck with the interior though…

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6.9% Pre-Incentive Discount data point
For those that follow here is a recap of the negotiated discount and various incentives to synch up with @mllcb42 corrected calculator

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First, congrats on the upcoming birth of your child. While :family_man_boy: may not realize it, :family_man_girl: Dad will be driving :family_man_boy: around in an amazing car.

Since you posted the financial sections of your lease agreement I can point out a few rough spots of your deal - so that next time you can go in and drive a harder bargain. It’s easier playing the game as a Monday Morning quarterback, so please note I only do this to help put a value on the time you will spend in preparing for your next deal. It does take some time to prepare, but there is value in it.

  1. As @mllcb42 pointed out you didn’t do your homework on the possible discount you could have negotiated with the dealer. What hackrs refer to as your “Pre-Incentive Discount”. You negotiated a 6.9% discount. Under normal market conditions, in the competitive SoCal market you can get to 10-12% off. Some say a little more, some say a little less. Next time, look at relevant comps and see what the market is doing. This raised the price of the XC90 by $1,947-$3,199. I’ll let you calculate the per month penalty. You found yourself in a seller-friendly market (inventory is low) and with all that Costco cash dealer’s were throwing into deals (thereby creating the perception of big discounts) you may not have gotten to 10-12%.

  2. The dealer marked-up the MF from the buy rate 0.00141 to 0.00150 (calculated from the $4.907.08 rent charge on your contract). This was not too much of a penalty, it will only cost you $294.39 over your 36 month term. The key lesson here is to make it a point to know your buy rate and know what MF your dealer is offering you. Next time, go in and get the buy rate or adjust your selling price offer to offset the markup.

  3. You put in $1,923 to lower your capitalized cost. Most people would suggest avoiding any downpayment since if your car is stolen/totaled the insurance company will not reimburse you for your downpayment. The balance of your $3,500 went to pay customary DAS.

So there you have it. You asked us to analyze your deal. Next time, the dealer won’t know what hit him.

Once again, congrats on the baby.

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This was great. I understand this “game” now and Next time i’ll be ready. Thank you for the throughout explanation. I’ve learned something and hopefully others can to.

One more observation for you. If you are pressed for time and can not put in the homework (many folks can’t), think about using a broker. You can find many good ones here. They do all the work, make sure you get a good deal and run about $500.

Here is a broker deal you can compare to what you locked-in. A lower MSRP XC90 T6 Mom, but in your ballpark - adj figures to be more comparable to the one you are driving.

AutoLeaseNinja June SoCal Broker Deal:
$59K XC90 T6 Momentum $469 (+Tax) Per Month with Inceptions + MSDs DAS
Costco included, Loyalty can be addded into deal
Inception = 1st, doc fee, dmv fees, acq fee
$499 Broker Fee

Hopefully a quick question for you. Your dealer treated your $1,250 Costco Cash as a direct-to-dealer incentive. Basically, your dealer used the incentive to lower the selling price of your car (Agreed Upon Value of Vehicle line 7 on your agreement).

Usually, I see CA Volvo dealers applying the Costco Cash as a direct-to-consumer incentive. It’s usually reported on a lease agreement in line 6b, Rebates & Non-cash Credits. If its treated in this way you can use the $1,250 to lower your cap cost (effectively lowering the price of the car) or use the rebate to lower your DAS. Buyers choice.

Do you know why your dealer chose to reflect the Costco Cash in your selling price (good news for you is you didn’t pay sale tax on it).

Thanks in advance for the insight.

How do you know that (I’m going back to the response I gave you about tax on rebates for this scenario)?


Thanks for sticking with me, I could use your help to figure out what’s going on here.

The buyer indicated he took advantage of the Costco $1,250 cash. Where is it in his deal? I reflexively go to the DAS section of the lease agreement line 6b and look for how much rebate was in his deal. Line 6b is reported as $1,500. This looks like the loyalty cash only. No Costco cash here.

So since the buyer was given credit for the Costco cash I ASSUME it was reflected in lowering the selling price. The lower the selling price, the lower your sales tax base. If Costco cash was used to lower the sales tax base, it isn’t taxed.

That how I am getting to my observation that the Costco Cash was not taxed.

After your review of the lease agreement, where do you see the Costco Cash in the deal?


I think what Ursus is trying to get at is that without looking at a break down of where item 5f. is coming from, you don’t really know if the costco cash is being applied or not. Normally, I’d think that 5f is the sales tax rate being applied to 5a, which is the balance from the trade-in allowance and cash up front covering fees, but based on the 9.5% tax rate used to calculate the sales tax on the payment, this doesn’t quite add up right (5f would be $325ish rather than $308), so the tax calculation is slightly more complex.

Yes, 5f sales tax is always a straightforward calculation of the cap reduction and sales tax on the Acq/Doc fee IF not rolled into the lease. For me, this is the first time where the sales tax calculation has been off. I can’t figure out why quickly.

If the $1,250 Costco rebate was taxed (1,250 x 9.5% = $118.75 in sales tax) I don’t see anything close to a tax discrepancy anywhere in this deal. Which again, suggest to me it wasn’t taxed.

Big picture, I am trying to figure out where the Costco rebate is showing up in his deal. Lower selling price? Rebate and non-cash credit?

Or, to make it simple, dealers will not mess around with sales tax on purpose. So, if something must be taxed - it will be. It is only $120 anyway, so no idea why one needs to spend time figuring this out :slightly_smiling_face:
@824 - in VA I didn’t have any incentives listed separately, but as CCR. But they are not taxed, anyway

Can’t blame the guy for wanting to understand how the sausage is made

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