Volvo S60 T5 Momentum (Loaner) - $325/month $1000 DAS

I am looking to sign a lease this weekend and I am having trouble getting the right numbers in the calculator. It is a Volvo S60 T5 Momentum loaner with about 5k miles on it.

Year, Make, Model, and Trim: 2020 Volvo S60 T5 Momentum FWD Loaner
MSRP: $40,295
Monthly Payment: $325.91
Drive-Off Amount: $1000
Months: 36
Annual Mileage: 7500
MF: 0.00086
Residual: 54%
Region: PA
Leasehackr Score:
Leasehackr Calculator Link: CALCULATOR | LEASEHACKR

I am currently leasing a Jaguar XE 35t AWD that was supposed to be too good to be true according to all other dealers at 401 a month with 1000 down, I wish I could say that I “hacked” that lease but the truth is, it was my first lease and I just lucked into it. Three years and two kids later I need a cheaper car and I am running into the same “Thats too good to be true” scenario. The dealership sent me their worksheet (included below) where it states all of the figures but I cannot figure out what goes where. They will also be taking over my current lease that has two payments left by taking the Jag off my hands, and cutting me a check for $803.20 to cover the last two payments. I am skeptical from all of the other saying it is too good to be true, and reading this forum has helped but I am still far from being as knowledgable as I need to be. Any help would be great!

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It looks like its the residual throwing it off. Your calculator is at 54% but you need to account for the mileage adjustment.

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You seem to be correct. I am still off by a little but not much. Once I put it down to the 51% it gives me 328 a month which is much closer. Thanks! I know @volvo1 was able to get it a little lower, any ideas on how to do this or be happy with where I got it? the $803 for my current lease may be the major issue thats pushing it higher.

Add $1,000 ($0.20 x 5,000) to the sales price. Do not adjust RV. I’d just wait 2 months and get a better deal in April on a more loaded loaner.

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Hey now, the dealer adjusted the RV on their lease sheet :wink:

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Ugh please don’t start.

I can’t see anything on that screenshot, but we know that Volvo adjusts $$ amount, not %

Screen shot shows the RV value as 54%, with a value of 20716.70 and a mileage adjustment of $1042.60.

54% RV is $21759.30. Subtract off the the $1042.60 mileage adjustment and you get the lease sheet residual value of $20716.70.

Two ways to put that into the LH calculator, both of which work.

You can either

  • Input RV as 54% and add $1042.60 to the cap cost
  • Input RV as 51.4%

Technically, the latter would be more accurate to what the dealer sheet says (reflecting the RV in the RV column), but mathematically, it doesn’t make a difference.

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Yeah. He said he was adjusting %, so I suggested easier way to do it in the calculator (without calculating adjusted RV %)

Yah, either works fine, as long as the dealer isn’t magically making the mileage penalty vanish in a means that makes no sense whatsoever

Why wouldn’t you want the actual residual value to be reduced instead of adding in the mileage adjustment to the cap cost? Sure the payments will be the same but I would rather have that $1000 go towards reducing the final payoff amount in case you want to keep it or sell it instead of turning it in.

I put in the 51.4% and kept the rest the same (adjusting the $ down to get it to 1000 even) and it came out to 324. Thanks again for the help. With a Lease Hacker Score of 11.5 years, is this a deal that makes sense. I understand the higher the better but at what point does it make sense to pull the trigger?

It’s an artifact of the leasehackr calculator and how you input the value there.

The contract is going to be what the contract is and the RV will be calculated how volvo calculates it. You don’t get a choice in the matter.

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LH score doesn’t matter.

If you actually want to evaluate if this is a good deal, you need to separate out the pre-incentive discount from what you’re showing, which right now has the dealer discount and incentives lumped together.

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Well thats great to hear I am glad we got it figured out! In the leasing community, since this is only my second one. Does this look like a good deal. Once again all other dealerships within a 6 hour radius have said that they cannot beat this, which makes me skeptical but also excited that I may have gotten a great deal.

Also, have you got a buy out quote from Carvana and vroom on your jag? (not that I’d expect it to have positive equity, but always worth checking).

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Yeah it is about 6k under water on that. No chance I get anything from them.

So there’s $4500 in incentives on the car right now. Factor in that and the $803 they’re giving back to you as a deeper discount, and you’re at just under 19% pre-incentive on the vehicle if we assume the incentives aren’t taxed (only way I could get the numbers to add up)

That makes this a very sweet deal. Make it even better by maxing out the MSDs and you should be under $300 a month.

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I was gonna say I would try for another $1k off but then remembered they are giving you $803 back. Not sure why you can’t just do $0 das and forget that check but seems like a solid deal to me either way. Before I got my G70, I was looking for S60 loaners, and from what I found, 20% off MSRP before the $4500 in incentives was what I should be aiming for. Your deal seems pretty close to that.

Is your tax rate actually 9%? or was that just the default value in the calculator?