Volvo XC60 T5 Inscription- buy or lease- MSRP and other numbers-Chicago- Lease Expires Jan 2023

Hi LH community,

It was your help that got me the below deal 3 years back- thank you. So I need your opinion on whether to buy or lease and my first preference is to get a lease deal under $500 for the same car or a Lexus/Audi/BMW/Merc. I have a feeling that will be a tough, unless I find a finance deal through a credit union.

I’m sharing all the numbers and apologies for a few that may not be required for this discussion- hopefully it helps someone searching later.

Car- Volvo XC60 T5 Inscription AWD / 2019 loaner car, got it with 7000 miles on.

MSRP-54620/Agreed value of vehicle- 43550

Lease Gross Capitalized Cost- 47200

Cash paid at drive off - $3000/ Adjusted capital cost - 44204

Current miles- 26000 ( Miles allowed on my lease-12000/year, so 43000 miles upto Jan 2023, most probably will close at 30000 miles).

Monthly lease amount - $459 ($439+$20 wear & tear add on), inclusive of taxes. IL state. Chicago

Volvo buy out - $28597
Carvana/Car Max quote - appx $32000

I have reached out to a few dealers and may use a a broker, I have only checked for the same car. The sales tax where I reside is 7.25% and talking to Citizen Credit First ( thanks to Hershey’s APR sheet) to check on a 4 % interest rate.

Factors I’m thinking about

  • no maintenance issues, so buy out and use the same car for another 2 years and then buy/lease.
  • Used car market prices may drop substantially for luxury cars in the next 2 years.
  • Car will be out of warranty along with the lease ending, so added costs. Maintenance costs.
  • If new lease or buy, newer car and tech, so no issues for the lease term.

Thank you.

Leasing in chicago is a non starter

Why do you say that? Isn’t IL one of the states where you pay tax only on the lease amount? Or is it the market?

No, Chicago leasing is a non starter. The city charges an additional 9-10% tax in addition to IL tax, so youre paying almost 20% tax

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@mllcb42 - I checked my RUT-25 lease document and it is calculated at 7.25%. I stay within Cook county, but in the NW suburbs. I’m not an expert, so curious on this added 20%tax.

I’ll ask a few dealers, when I reach out this week.

In the City of Chicago proper, not Chicagoland, you have an addtl 9% sales tax monthly on top of cook and state tax.

Glad my layover + COVID could help people!

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Yes, it definitely helped. I did not know that about Chicago city- phew !!

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