You can apply online and enter some compelling reason why you need to extend. Like your dealer does not have the exact 2020 XXXX that you want and it will take time to locate it or it is in transit according to the dealer. Volvo may give 1 month. But you have to fight for it. They extended me for 1 month first and then for 2 more.
@Ursus
My lease is ending in last week of April, is it too early to try now?
I’ll try the online request saying dealer doesn’t have the car in stock… May be v60 Polestar?
Volvo was not budging when I tried. They required a signed purchase order or lease on a Volvo car that was not yet available. Then they would extend my current lease until the date that the new Volvo became available.
But that doesn’t mean it won’t work for you. Definitely still worth a shot if you are happy with your current deal.
Thanks for the update. I’ll be 30 days out this week and was thinking of requesting 3 extra months on my S90. If deals are great in April due to Corona, I may regret it.
I was able to extend with VOLVO. I called them again this morning, my car was due back today. When I saw the post by TaiChi I thought I would give it one last try because the car was due back today. With all that in mind I will not be doing much driving like everyone else but I didnt want to mess with returning it today no matter. This way I can deals that shake out anyway moving forward. With that in mind my car is all cleaned out of junk LOL.
I think there will be tons of deals for the rest of the year. You dont have to worry about April or May etc. The car business will be severly impacted. ALso in tougher times credit scores can get dinged so potentially less credit worthy buyers/lease
Hi all…new member here and interested in extending my Volvo S60 lease for up to 3 more months. I live in NY and factored all of my taxes into my monthly lease payments (sign and drive). Still, Volvo is telling me that they must increase my monthly lease payment by $30 as taxes need to be added in? Taxes are already added in and have been for the duration of my 39 month lease. Can anyone shed light? If you’ve extended your lease, did your monthly cost increase? Thx in advance!!!
The way I see it: you paid taxes (technically VFS paid taxes on your behalf, since it’s NY and taxes are due upfront) on lease cost for the original term (say 36 months). Now you’re extending this term by x number of months, thus increasing lease cost. These extra x number of months (or rather delta of increased lease cost, since NY taxes that, not monthly payment) weren’t taxed when you signed your lease. You need to pay tax on it. Everything checks out.
That’s likely how they consider it and probably why there’s nothing to be done.
The “issue” though is that the payment includes the capitalized taxes. In theory, once the last payment has been made, the taxes have all been “paid for”, so one would ideally like the payment moving forward to only be depreciation and rent charge.
Now, the same thing applying to the capitalized taxes here applies to all of the capitalized fees as well. They, too, have been “paid for” in theory. None of this actually matters though.
Ultimately though, NY is going to look at this as taxes were paid up front for the lease period and they want their use tax on anything moving forward. They do the same thing with lease transfers if memory serves. Volvo is saying “we will extend this at the same current price” and NY is saying “and we want to tax it as well because tax on the extension wasn’t captured before”.
If it helps, think of the extra $30/mo as a convenience fee for them extending the lease beyond the contract terms.
Thx so much for the replies. Just hung up with my Volvo dealership and they believe that VFS is incorrect in their calculations. I paid a total of $1273.78 in taxes over the course of a 39 month lease. This tax increased my monthly base payment by $32.66. I have now completely paid off the $1273.78 as I’ve already paid my 39th and final payment. They suggest that any taxes due on extended months be added to the BASE lease amount (which, in my case, would be $346.34) and that the taxes ($32.66) be added to that. Otherwise, I’d be doubly taxed. Of course, this new number would be identical to that I have already been paying. If I can’t get VFS to see it my way, I shall move on and enjoy the benefit of paying an additional $32.66 for the benefit of an extended lease and more time to find my next car! Thx all :))
It’d be interesting to see how the contract math is written as to if the taxes are listed as a base payment/itemized taxes (this is how it is done in places where tax is applied monthly rather than up front like NY) or if the taxes are listed as a capitalized cost. NY has weird rules about how taxes are handled when they’re capitalized.
You are very wise! And, I’m learning a lot (that I never wanted to learn lol). It would appear that this entire issue originated with my Volvo dealership failing to specify (in the monthly payment section) that my taxes are being allocated over the life of the lease. I’m being told to call the dealership to correct this, and I don’t know if they’ll do so or if NYS would accept it anyway. Thankfully this is not an expensive error!
I don’t know that in NY, one can do that. NY is a state where lease tax is paid up front rather than monthly. You, as the customer, don’t see that, because the bank pays the money to the state up front and then capitalizes the cost into your expenses. If, for example, you were to sell your lease half way through the lease period, your pay out would factor in all of the taxes.
In other states, taxes are paid monthly as a separate charge. Nothing is paid up front. If you sell the lease early, there’s no obligation for the remaining taxes.
I’m not 100% sure how this actually shows up on a NY lease, but it would actually surprise me to see the monthly tax be itemized like the dealership was describing. That may be how it’s done or you may have been speaking to an employee that’s from out of state and is incorrect with how it’s done in NY. I would not expect that your contract would have been approved and funded if the taxes were handled incorrectly on it, however, so I would expect what ever is on the paperwork to be how it’s supposed to be.
Thx for your reply. I’ve a feeling you are correct. This is all so new to me as I’ve never requests a lease extension before and have never even looked at all the line items in my lease agreement before (not that that’s an excuse). Really appreciate all the replies.
But…my monthly payment ALREADY has taxes added in. It’s base PLUS taxes. As such, for any months I extend for, VFS will be adding taxes to a base that ALREADY has taxes added to it. (If that makes sense…).
From a semantics standpoint, since you’re in NY, the bank paid the taxes and your base includes an amortized charge equivalent to the tax amount. This is different than a state that taxes monthly where there is a base charge with sales tax collected directly at the time of monthly payment.
NY doesn’t get any extra money, so they want their taxes as a monthly use tax for any periods beyond what they’ve been paid for.
If you want to get more upset, your base payment also includes amortized registration fees, dealer fees, acquisition fees, etc that you’re “double paying” as well.
