I keep a leasehackr-type spreadsheet and I’m looking to replicate an advertised $409/month lease offer as a starting point in my own negotiation.
“Monthly payment of $409, based on $46,095 MSRP of 2020 V60 T5 AWD Cross Country, includes destination charge and application of $1,500 Volvo Allowance and $1,250 Lease Bonus. Lessee is responsible for excess wear and mileage over 10,000 miles/year at $.25 / mile.
$3,889 cash due at signing”
I figure the due-at-signing $3,889 would includes a $409 first month payment and $925 destination charge, so customer cash would be $2,555.
Can you tell me what would be the residual percentage and money factor to get those numbers?
I’m seeing .00021 and 54% with $2,750 incentives on Edmunds.
Maybe my spreadsheet is faulty, but even with zero customer cash that comes to 526.93 plus tax monthly.
msrp 46,095.00
allowance 2,750.00
customer cash 0.00
net cap cost 43,345.00
residual 54%
residual value 24,891.30
depreciation 18,453.70
months 36
monthly depr 512.60
money factor 0.00021
cap cost+ residual value 68,236
month finance 14.33
payment 526.93
CT sales tax 33.46
Forget your spreadsheet and just build your car on Volvo site and then use their payment estimator. Use “down payment” box for dealer discount off MSRP.
This is the advertised deal - - when I sit with the dealer I’ll re-work it for the msrp of the options I want, and I’ll add a suitable dealer discount to make it work for me.
Which is why step one is to get my spreadsheet to replicate the $409/month that’s in the ad.
But you’re saying there’s an unstated discount from MSRP built into the advertised price, beyond the $1,500 and $1,250 that the ad discloses? So the net cap cost is less than the $43,345 I’m showing before any customer cash?
I’ve never seen that before. Of course it won’t be hard for me to back into the $409 payment (with and without customer cash) but it will take away from my leverage with the dealer.
Here’s what I know about auto leases. The money factor, the residual, the manufacturer incentive, and the destination charge are all non-negotiable. You can negotiate the dealer discount and the customer cash.
Being able to demonstrate how dealer discount and customer cash tie to the monthly lease cost is a powerful tool. A lot better than having the sales person or manager asking you how much per month you’d like to pay.
I see I’m not welcome here, so I’ll stop wasting your time. Too bad nobody actually answered my question. (And thanks for the reference to Edmunds)
I believe your question was answered by Edmunds (they are the best place to get MF and RV, not here)
Also, why make your own calculations when you can enter the details in the Leasehackr Calculator? I don’t know your dealer or DMV fees, but it seems like there’s a small dealer discount/contribution baked into the ad.
I’d recommend that you search the forum for Volvo deals, and get a good idea of how much dealer discount you can achieve. Email dealers in the region and get actual quotes to base your negotiation, instead of relying on advertised offers. We’ll be happy to rate your lease quotes, once you have all the needed info.
You’re confusing criticism of your approach with not being welcomed. You’re trying to go about this in a way that is making things unnecessarily complicated without any benefit.
