Noticed that as well plugging in numbers last night. Got super excited and went oh crap. Unless you get deals funded like certain legendary members, negative depreciation is a deal stopper. I believe certain deals have been pushed over by adding service plans and then cutting a check to the buyer. Good luck getting a dealer that wants to do that, however.
Does the deal funding criteria care about the final all in price or solely the selling price less rebates? I’m in VA where taxes hit hard and upfront on leases, so curious if that matters when determining if a deal will fund. Otherwise my calculator is showing a max discount between 10-11%
I’d love to hear from those who know better, but my understanding is that it’s the true depreciation calculation that matters. As in, selling price after discount + rebates/cash minus residual value. That value can’t be negative. For what I described above to work, I assume those plans would have to be considered part of MSRP? Not sure how they’d affect the depreciation otherwise.
I know many calculators will show “depreciation” as the entire capitalized amount, less rent. However, for a deal to fund my understanding it’s the true depreciation calculation that cannot be negative.
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My deal funded in VA at ~19% off and everything capped. Didn’t have Costco in October though.
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No such thing as true depreciation or “the entire capitalized amount, less rent”
Depreciation is ACC (adjusted cap cost) less RV.
Whatever taxes, fees, etc the lessee wants to capitalize are inside that ACC number.
Thank you. So if the original depreciation calculation prior to any capitalization of taxes/fees (what I incorrectly called the “true” calculation) is negative, we’re saying that capitalizing those other things brings us back to positive and the deal will fund? If so that’s interesting and not how I thought it worked. I thought you couldn’t have negative depreciation before capitalizing other items.
I think that’s how they get around it by moving things around and capitalizing them. Can also lower the rv by taking more miles. If all else fails can add and capitalize a warranty and cancel after charge period is over. Or ask for a check to be cut back to you but not sure how many would actually do this.
Thank you and makes sense. Well, off hunting I go!
Has anyone found a dealer willing to work with them? I contacted one local dealer and they don’t seem to be willing to come anywhere near a 10% discount off MSRP in addition to the costco/aba/loyalty.
Multiply by 20.
Consider calling to get a sales rep or manager on the line. Be polite, let them know you are interested, confirm your preferred color combos are on the lot, let them know you are human and can sign on x date, have no spousal hesitance, and have test-driven the car. You will find a dealer to do 10%.
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Go to dealer(s) website. Navigate to the section labeled “meet our people” (or something similar to that). Locate the sales manager/gm and email them your target deal. Calling or showing up at a dealer without the deal set up is a sure way to destroy your time pie.
EX:
https://www.scottvolvocarsallentown.com/dealership/staff.htm
Hi @baggy , did you have to put down some MSDs? Also, what was the MSRP of your vehicle? Thanks
Yes. Details here,
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Is this excluding California? I cannot get a dealer under $500 month, which includes high MSDs. Maybe they are in higher demand in CA??
But you got there cheap chevy Equinox EV and Ioniqs LOL
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I’m on Long Island and going as far south as Maryland, north to Maine, west to PA. No one is agreeing to anything above 10%. Even on a 2024. Best deal I have on the line is $518/month with $500 das (govt fees). This is with $14,000 incentives and 8.625 NY tax, 10.25% off and a marked up MF. I mean, still a lovely deal on a 77k car, but I’m here for a reason damn it! I’m so jealous of you @baggy 
. Gonna keep at it.
Suggestion-
Volvo rebates are based on dealer location.
Get a car from out of state dealer, that has highest rebates, has demo, and ready to play the ball. 
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I thought it was where the vehicle is registered?
Volvo is the only outlier to this rule that I am aware of.