Volvo XC60 lease deal I want to propose

So I wanted to share an offer that I am planning to make to the dealer. This is my first time really researching lease negotiation tactics and want to be sure I am not way off base, or if this is even a reasonable offer that the dealer could accept.

Link to vehicle:

MSRP = $51,905
Asking sell price - $46,000
.00067 MF and 55% residual
36 months @ 12K
$2250 in Incentives

I do have a 18 4Runner that I am looking to trade in. I owe about 36k on it (previous negative equity) and want to ask for 33K. That is essentially the max on KBB (unreliable source, I know. Just wanted a ballpark and maximize return as much as possible)

I included -$3000 on the down payment calculator for the cost cap adjustment. Is this an appropriate way to account for negative equity? I’d like to put down as little as possible and keep payments under $600. (currently paying $666). Would putting down some MSDs money help my payment or should I wait to see what APR they can give me. Credit Score is 750+

Do these numbers make sense and would this be a good deal that a dealer might entertain?
Calc link.

Half the inputs look like defaults (acq, doc, gov, tax)

No but you could add it to any other field for lump sums such as the doc/dealer fee

No it isn’t. Either add it on to the dealer fee section or add it to the selling price.

I just used the defaults because I was too lazy to look up the actual numbers. 3% tax rate in NC. Gov’t fees shouldn’t exceed $400 and not sure on the dealer doc fees.

If you’re trying to figure out if a deal is doable by crunching the numbers, not putting in the correct numbers isn’t a good start.

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Sorting out your deal BEFORE you talk to dealers will serve you well. I can help you with two key variables in your deal:

$51,905 MSRP
$46,000 Selling Price BEFORE Incentives
$ 5,905 Dealer Discount
11.4% TARGET Pre-Incentive Discount

Aggressive initial offer - you WILL get push back at 11.4%. Dealers have limited inventory so be ready to settle on something short of your target if/when you get shut down. Best thing to do is look at deals in the past 2–3 weeks and see what is possible in today’s market. I don’t track current Volvo pre-incentives closely but if memory serves wrap your head around 9-9.75% as a possible “best you can do” figure. Be ready to settle on pre-incentive discount less than 11.4. Do your homework - which you are doing now.

MF 0.00067 - I trust you verified this is the buy rate in your region. Keep an eye on the MF the dealer puts in your deal. Be alert to any mark-up.

Good luck.

You’ll get more help here if you make a best-effort attempt to make the numbers accurate

There is no reason to assume any of those things. You can literally call the dealer up and ask what their doc fee is or look for it on their website.

Making an offer is useless without being close to accurate, for example a dealer could agree to a payment and DAS that includes 9% tax because he knows it’s really 3% and he can pocket the rest

We did go test drive the vehicle last night and he beat me to the punch with an offer.

$51,905 MSRP
$46,840 Sell Price (He couldn’t tell me the breakdown of dealer discount, incentives, etc.)
$3,000 down
$32k for trade
10k @ 36 months

I asked for a breakdown of the numbers (including tax and fees) and that caught him a bit off guard…Once I see the breakdown I’ll be able to see where they might be taking advantage.

You should always know the break down of incentives before you talk numbers with a dealer. If you’re left wondering, you’re jumping the gun.

I guarantee you that his $46840 number includes the $2250 in incentives rolled in.

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It’s is common for a Volvo Dealer to give you a selling price offer with the Volvo-to-Dealer incentive in their offer price.

Offer #1
$51,905 MSRP
$46,840 Dealer #1 Offer Price
$ 5,065 Total Discount

$ 2,250 Volvo-to-Dealer Incentive you loaded into your calculator
$ 2,815 Dealer Discount
5.4% Pre-Incentive Discount Offered

You are targeting 11.4% - let the negotiation begin.


Here is something to review if you need to understand how to evaluate a Volvo dealer’s offer price.

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Thanks 824. I had actually read that post from you before posting. Will keep you posted. I appreciate your advise and guidance.

They offered you a price on something you enquired about. They were not taking advantage of anything aside from the fact that you gave up leverage by stepping foot inside to talk there.

He gave me the breakdown which is essentially exactly as you commented.
$ 2,250 Volvo-to-Dealer Incentive
$ 2,815 Dealer Discount
5.4% Pre-Incentive Discount Offered

HOWEVER, the MF he gave me was .00104 or 2.5% and RV was 55%.

These numbers were off compared to what I got on Edmunds this morning. He asked me where I came up with those numbers and I drew a blank…lol. How do I explain that without saying “off a forum on Edmunds” lol

“I got the figures from edmunds and another dealer.”


His RV was off by 1% vs what I got off Edmunds. Is that reason to push back or not a big deal?

There is usually no funny business with RV. Off by one is usually difference between 10k and 12k. Or sometimes different models, T5 vs T6 for example (I am not saying this is the case). Double check your work.

If you want a good deal in this market you need to approach multiple dealers. See what the next one says.

You want the current RV, RV plays a big role in your payment.

Make sure the RV from Edmunds and from the dealer is for the same mileage. If you don’t specifically ask, Edmunds gives you based on 15k and you add 2% for 12k miles.

Here is the deal i received from the dealer. Not good, right? Only 4.3% off pre incentive…

Scan 2

I can’t get my calc. numbers to match up completely. Where should I include the ~4,000 negative equity?

6.4% - you know the answer.

51905-46340-2250=3315 / 51905 = 6.4%

But your MF looks good.