XC-60 Plugin Hybrid Ultimate Dark Polestar Engineered - Lease Numbers Review

Ask the Hackrs
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Hello LeaseHackrs!

I am new to leasing, and looking to get a better idea of how these numbers stack up, and where I may be able to find leverage.

Things I have learned from this community:

  • Maxing out on MSDs to lower the overall MF
  • The primary leverage I have is the Initial Cap Cost
  • Be wary of aggressive dealer fees

Here is the deal that is being offered to me. I would love a review form you experts. Once I do finally sign here, or elsewhere, I will be sure to share my outcomes.

Closest approximation to the vehicle: https://www.volvocars.com/us/choose-offer/review?model=xc60-hybrid&token=16588154323695828594

The lease terms:

Category Details
Cap. Red. Tax (%) 8.625%
Contract Date 03/05/24
Rate 0.00309
Lease Term (months) 36
Base Monthly Rental ($) $939.54
Luxury Tax Type F
Monthly Tax Rate (%) 8.625%
MSRP ($) $79,075.00
L.E.V. (%) 55.00%
Bank Fee ($) $995.00
Lease-End Value ($) $43,491.25
Total Working Cash ($) $15,500.00
Initial Cap Cost ($) $67,021.00
Cash Cap Reduction ($) $2,794.42
Total Cap Reduction ($) $2,794.42
Security Deposit ($) $10,500.00
DMV Fee ($) $810.00
Customer Cash Down ($) $15,500.00
Total Drive Off ($) $15,450.42
Total Monthly Payment ($) $1,020.58

Looking forward to any insights you can provide.

Best,
CM

2

Here We Go What GIF by Van der Valk

The lease program on these is atrocious to start. The MF is marked way up before MSDs, it’s marked up above buy rate after MSDs. It’s a little difficult to understand what they’re doing here without a worksheet, but this appears to be a hate crime.

This trim only makes sense in a lease-to-buy scenario, and probably not even then.

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Dont You Say Season 8 GIF by One Chicago

Thanks for your detailed insights on the lease terms—it’s been incredibly helpful. I’ve got a few quick follow-up questions based on your advice:

  1. Trim Levels for Leasing: Is choosing a lower trim more beneficial across all brands, or is it specific to Volvos?
  2. Negotiating the MF: Any tips for negotiating a better Money Factor, or is it mostly non-negotiable?
  3. Lease-to-Buy Considerations: What factors make lease-to-buy a viable option?
  4. Recommendations: Any other brands or models, the BMW X5 PHEV or similar, with more favorable lease terms worth considering?
  5. Negotiations: I’ll be visiting a few other dealerships this week. Any tips on how I should approach the conversations? I may have tipped my hand by asking for maxing out MSDs to offset the Money Factor.
  6. Will the dealer divulge the worksheet if requested?

Thanks, again.

CB

4

Move to a strategy of making offers.

Plug the following into the LH calculator after MSRP of the vehicle you’re looking at:

Selling price based on % pre-incentive discount found by searching Shared Deals and Marketplace sections of this forum.

RV, MF and incentives (lease cash) from Rate Findr. Add any extra rebates you qualify for (college grad, etc) under incentives.

DMV fees and taxes based on your state’s official website.

Voila! Now check the box to make it $0 DAS and offer the resulting monthly payment*

  • preferably rounded to a multiple of $5 or $10 to make yourself seem more like a normal person :innocent:
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  1. Search the Marketplace for deals on vehicles you’re interested in to understand what the current market looks like for a particular vehicle

  2. Head to the Edmunds forums or pay for access to the rate finder on Leasehackr to understand the current MF and Residuals for desired lease terms, and what the current incentives for your desired vehicle(s).

  3. Create your target deal using the Lease Calculator (do not send the dealer a link to the deal calculator…)

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They’re good at least on the east coast relative to any competition

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what’s a good calculator because the ones i use are so different compared to LH calc

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Learn how to do all the calculations manually. Create your own calculator using Excel. Success always favors the prepared. Knowledge is power.

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Not for all dealers. LOL

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Even though I believe that the LH calculator is the best online lease calculator, that is no reason not to learn how to do all the calculations. Educate yourself about leasing, including how to do all calculations even the complex ones, and you’ll know more than the dealer but that’s not saying much (lol). Like airline pilots, all they do is press keys on a computer… brain lazy!

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Are you Max 8 or Max 9?

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12

For 99% of people, the LH calculator is the best one.

13

This is bad. all around bad

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14

Gotta love your sense of humor. Just having a bad day.

15

It’s time for my yearly eye appointment
I could swear I just read $15,000 down and $1020 a month for a Volvo XC60

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$10,500 is MSD but it’s the hardest of hard passes, regardless.

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Thank you all for the helpful and humorous responses here. :slightly_smiling_face:

I have some additional shopping around to do in the SF Bay Area, and will see what numbers I’m getting back from other dealerships.

There’s likely some nuance I’m missing here, or I’m just dense, but I’m coming to roughly the same numbers they’re providing, even when using RateFindr which provides a better MF.

Here’s my calculator results - let me know I’m just really missing the mark here, but I believe I’ve plugged the numbers in correctly.

If these are true numbers - I may just go out and buy a 2023 at half the cost, because this just seems ludicrous after internalizing and analyzing the cost here. Especially since I can get a loan APR of about 2 basis points less, through my bank, than what the MF equates to.

Thanks!
CM

18

I’m new to LH and have learned a lot here (wish I would have done a Deal Check on my leased Macan in 2021) but one thing I’ve read/learned…NO DOWN PAYMENT. $15K seems strange unless you plan to buy out ?

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Not a great strategy. Likely same outcome

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There’s no such thing as “true numbers”… everyone sets their own price.

In the east coast section of the Marketplace XC60 Re Ult $71,5xx MSRP for 11+ % off before rebates = $685 plus tax with first and plates DAS.

1 Like