Cap reduction is the portion of your down payment that isn’t going to upfront fees.
The dealer is showing a 5% discount here (57.5k selling price vs 60.5k msrp), but that mf mark up accounts for a 5% msrp markup, so this is basically a full msrp deal.
So it seems like looking for a dealer who would match buyrate of .00183 and include the 7500 EV credit is what I need to do to at least see a reasonable lease number.
Would the EV credit lower the Cash Price (line 30) to $50,040?
The dealer doesn’t include or exclude EV credit. Volvo does.
This isn’t an option. The dealer has no say.
A reasonable lease number on this doesn’t exist. If you want it, buy it.
Got it, thank you! So even if they matched the buyrate it would still be crazy expensive.
Typically does the EV credit taken by the manufacturer lower the MSRP or cash price? I ask because I’m also looking into the Subaru Solterra.
IF the bank passes it on, it’s usually treated as a cap cost reduction, so it wouldn’t change the msrp or the sales price. It’s basically like a big down payment.
And is Volvo known for not passing it on for their EVs? Do other companies pass it on?
Ya, Volvo hasn’t been recently. Some brands do, some brands don’t.
Nothing “cute” about paying $1k/month for this car. Find something else or finance it if you really want this car.
Does Subaru? The Solterra is another car I am considering
Most cars do not lease well. They do not have the programs (RV, MF and incentives) to be good candidates for lease-hacking, regardless of what dealer discount you can negotiate. This is truer now than it has ever been. Which means you cannot start your search with a particular car or cars in mind, and then find a way to make them lease well.
It will be like pushing a boulder uphill while pulling teeth, and you’ll still probably have a bad deal in the end. You need to start your search by filtering only the vehicles that are leasing well right now and offer good value per dollar.
Check out the “Share a Deal” and “Marketplace” sections of LH forums to decide what’s leasing well and pick a vehicle that is already proven to offer good value.
Remember, there are no magic wands that can save a deal from poor programs (RV, MF, and incentives) and/or poor discounts.
Until the solterra is out and lease programs are available, it is unknown.
Subaru doesn’t need to pass it on. They never offered any incentives during better times.
Unless toyota passes it on with the Toyota solterra
Expect $7,500 markup at dealer if so.
It’s still Subaru/Chase.
I swear on my life that when I got to the end of your post I said out loud “Oh God”, with dismay and horror in my voice. This could be the worst lease deal I’ve seen in a very long time. It would be hall of fame material.
Choose a different car. If you cannot get a good deal on your first pick move on.
EDIT: You asked how you can make this deal better. You can’t. Any dealer who was willing to put those to paper is so far off ($10k+) they will never meet you. Spend no more time on them.
My advice either buy this out, then you can get credits, or put an order in for a Rav4 Prime. I am able to order one at MSRP and you may be able to also.
Worse than the Accord guy?
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