Hey everyone, currently in the process of working a XC40 Recharge Loaner deal and was wondering what pre-incentive discount I should realistically aim for. Has about 1600 miles and I know the best new deal was 9.72%. I’m thinking 14-15%.
Just started researching this subject recently. Feel dealers arent discounting NEW ones unless there are programs one belongs to. Volvo repeat customer, etc. ON a loaner in this used market, Im curious if you’ll get 14-15% off msrp
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Think 14 - 15% is pretty aggressive but possible?
The problem with pre-incentive discounts is that it’s so dealer-by-dealer. One dealer in a market might play ball and 2 others in the same city might flat out say MSRP only so it’s (edit for clarification) not as easy as saying “one dealer would sell @ 9% off so the dealer with the loaner must be higher than that”.
I’d love to be able to do a 10%+ pre-incentive ($5.6k) + Costco ($2k) + Affiliate ($500) + $7,500 in federal credit on a XC40 recharge - i might even trade the 330e I got in January (which is +equity w/ EV rebate) to do that!
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Tell me a dealer thats giving 10% or 5.6k off plus costco and affiliate?
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My dream dealer :)!
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There is a broker who does this.
Is that broker ben?
when you find that dealer, send me the info, please
Is volvo passing on the whole fed credit?
yeah it’s the lease cash.
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You can get everything you ask for here and still get stuck with a crazy high MF that kills the deal
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That’s the point in comparing pre-incentive discounts…
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If dealer A offers you a 5% off MSRP discount, and dealer B is closer to 9% off MSRP (at the same MF and comparable dealer fees), which dealer would you go with? It is not rocket science.
Obviously. My issue is using pre-incentive as a proxy for estimating a discount on a loaner car that has very few comps in general .
Also, if you’re willing to risk the uncertainty in RV you can finance (I think it’s 0.9%?). Very different risk profile and likely most feasible if you think you want more flexibility in ownership but a possible option (only reason I’m in-the-money with my current EV was financing and taking the credit so I can flip now if I want to).
What would you prefer to use?
Limited comps doesn’t help in determining the proper discount to target, but what other metric would you want to use?
I’m not sure why you’re going down this rabbit hole so much. My post was a Caveat Emptor for someone who thought a 1500 mile loaner would give an additional 5% MSRP discount from the highest and best deal we’ve seen in a market where most dealers aren’t playing ball. It’s possible, but I would take the under on that one.
I’m asking questions to better understand what you’re trying to say
I think the point is that if Dealer A is discounting at 5% and Dealer B is discounting at 9%, and Dealer A has the loaner you’re targeting, using the 9% pre-incentive to determine target discount with Dealer A isn’t helpful.
All that tells you is dealer A is overcharging and to move on or willingly overpay. Doesn’t make the comparison metric faulty.