@Ursus is correct; Volvo doesn’t pass it thru and it’s not mandatory. In some cases, they may offer a slightly lower payment…but I definitely wouldn’t count on the federal tax credit going to you.
In this case - yes, if you must have a have Volvo. Or you just need to wait until they start offering this rebate as incentive again (which may not be any time soon).
That $40k offer might as well be a mirage, in 3 years it won’t exist. You’ll be lucky to get low 30s.
Add tax on a purchase price of 57k and then you’ll see how much you’re spending on a 3-year purchase.
IDK how many ways you can be told this.
Most cars don’t lease well. Most don’t hold value well for a purchase either. You cannot change things outside your control through sheer force of will or wishful thinking.
You don’t know what kind of loss you’ll take on this car in 3 years when you sell the car. One accident is enough to add $10K to your $17K for 3 years. Add another $5k on top for low residual. The point is - you have no idea what you get for it in 3 years, but we know that Volvos resale values drop like a stone.
That means nothing. VCFS RVs have nothing to do with reality. Like I said before - your car will worth $45k 5 minutes after you drive it off the lot. Good luck to you, anyway.
Looking at what Carvana is offering now is about as useful as looking at what they were offering May 1, 2020. Covid and then chip shortage makes the current situation unique.
But you can look at recent history. If you lease a Honda and keep a clean Carfax you are probably gonna have solid equity. If you lease a Subaru and keep it clean RV is probably dead on. If you lease a Volvo or BMW and keep it clean…you are gonna be way underwater for the entire lease including the day you turn it in.
Given the current covid environment, the prices of used cars are inflated. I expect the true value in a normal market of a 2018 xc90 to be around $5-8k less then what is it now. Also, the EV space and technology are constantly changing which means plug-in hybrids might be obsolete in 3 years which would drive down value even lower. No one knows what the future holds but the odds are against the xc90 holding its value.
Have an appointment with the dealer on Friday for this new 2021 XC90 Recharge Inscription Expression 6 seater. MSRP $70,840. Here is their initial offer before any negotiation:
Zero out the $1,013 downpayment so that we are negotiating on the actual gross cap cost.
Grind them down on the gross capital cost to $60k. The rationale being they get to pocket the $5,400 Federal tax credit, which they really should be passing onto me.