Hey there. I got to a payment I’m comfortable with with a XC90 Mom T6.
But, I haven’t broached the subject of maxing out MSDs with the dealer yet. Hoping that will further reduce my payments.
Since this is the first time I’m looking at using MSDs on a lease I wanted to ask:
Does anyone know if you lose those MSDs if you trade it in early to a non Volvo dealer?
Has anyone had any challenges with getting your MSD’s back in a timely fashion?
Can anyone confirm that if the car is totaled (and covered under insurance) that the MSDs will be refunded?
Any risks I should be aware of?
I’m looking for documentation on Volvo’s website on the MSDs and I cannot find any. I’d ask the dealer’s FI manager but again I’ve not broached the MSD topic with them yet.
Its understandable that if the vehicle is damaged but returned (not totaled) - the costs of repairs would come out of the MSDs (as it would be billed if MSDs didn’t anyway). I’m looking for unexpected surprises.
Not speaking for Volvo and don’t know it’s different for Volvo, however, you do not lose MSDs when traded early. It’s an agreement with the bank so the MSDs can be applied to the buyout if you choose.
I have never totaled a vehicle with MSDs. However it’s similar to the above. The MSDs aren’t reflected in a way tat reduces balance of owed with the banks I’ve used previously.
I understand the current market is sort of a once in a lifetime anomaly. I currently lease a Ram 1500 and looking to get back into something a bit more fuel efficent. I’ve been offered several $K over my lease pay off from Vroom and its the only reason I’m considering this.
Going forward with the Volvo, its not likely I’ll have that same luxury. Therefore 3 years it is if I pull the trigger.
Either way you found what I couldn’t locate. I have no idea why their website is so horrible to use. But thanks!
Volvo has the best pull ahead in the industry. never makes sense to do taxes and fees out for it b/c you typically won’t keep it full term. Would just do first and MSDs only.
Just want to better understand your comment here, are you saying that it’s better value to roll the taxes and fees into the monthly payments so that if you do their early buy back you’ll have paid less.
It depends on the buyer and their preferences. I’m with @aronchi : I max MSDs to drop the MF, but also roll everything-in.
If your goal is to pay the absolute least tax/finance charges, this is NOT it. But if you are not anchored to a payment number, and you want to gamble on exiting your lease prior to disposition (on a Volvo, which you can’t swap, and are not guaranteed 3rd party buyouts will exist giing forward), e.g. a Volvo trade or pull-ahead — which as Mike pointed out is generous on several models.
I think everyone should do the math and make the best choice for themself.
