They go anywhere customer decides to use them. I’ve always used them (100% and not a part of it) as CCR on Volvo leases. Your assumption is that first goes sales price then drive-off and then application of rebates when in fact you can juggle numbers around to get the final payment, i.e. sales price - rebates then drive-offs.
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The rebate will show as part of the drive-off on the lease contract regardless.
Doesn’t matter how it will show on the contract, we are talking about applying it to the sales price or drive-offs.
Edit: just looked at my lease - “Rebates and Non-Cash Credits” shows N/A, when it was about $6,500 incentives that I applied to CCR.
May be different in CA since some rebates are taxable there, but doesn’t change the application of them.
Given most dealers will quote a discount including any rebates or incentives it seems like you’d have to specifically ask to pull them out to be applied towards DAS stuff, no?
It’s all the same, you just have to specify if the price includes incentives/rebates. I like to refer to it as customer cash(taxed) or dealer cash(not taxed).
Neither is taxed in VA, for example.
Oh yeah but they tax you on the entire price for the lease
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I’m only familiar with CA, who wants some of the incentive taxed as rebates. Here, they force the rebates into the total drive-off. A customer can apply whatever he wants to a CCR, but putting a specific amount in as CCR will force the drive-off to be what it is, including the rebate. Incentives like Volvo Allowance, lease bonus, or A-Plan can be netted out of the sales price, keeping the tax & license lower.
This was your original statement, which is wrong in any state.
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Would you like to place a wager that that statement is wrong for CA?
You’re arguing over your interpretation of what I said, not what was meant. If you have a $400 payment with a $5,000 drive-off, a $1,000 rebate reduces the cash from the customer to $4,000. Payment is the same. If you apply the rebate to the CCR, the payment is the same and the drive-off is $5,000 with $1,000 coming from Volvo.
What’s the difference, you can structure it however you want, it’s either out of your pocket, a rebate and however you want to roll the fees in. Seems like a convoluted argument. Oh and whatever the dealerships software will let you do, seems like on the antiquated Reynolds and Reynolds system it was harder to do zero drive offs
In CA the rebates aren’t forced into drive off. It is just different columns. What if I want my drive off to be zero (which I did last time) or what if someone wants their drive off to be $5k?
I read somewhere that the FWD 2019 XC60 will have leatherette.
How does payment stay the same $400/mo after you move $1,000 to CCR? 
@Ursus - I assume you’re saying you’re taking a $1,000 rebate and applying it at CCR. That’s fine. In CA, the drive-off will increase by $1,000 for the CCR and the appropriate amount of tax & license, around $1,100. So the lessee will pay about another $100 out of pocket. If the lessee chose to reduce his cash due at signing, the payment would be the same. That’s what I was saying in my entire sentence.
@JamesBond - in CA on a Volvo, the rebate has to be shown in the drive-off section of the contract, which will show enough to cover the 1st payment, license, tire fee, and doc. A dealer can give you a zero drive-off by not charging you anything, but they have to adjust the selling price to cover it unless they want to eat your missing drive-off.
@BigFudge - leatherette will be standard on T5 FWD, T5 AWD, and T6 AWD Momentums, according to the order guide. The leather will come with 4-way lumbar support, passenger seat memory, and front seat power extension cushions as a $1,600 MSRP option.
The dealer rolled all my drives off into the payment. I paid zero. Who cares what part of the contract the numbers are listed in. Ultimately we are pretty much talking about the same however saying that the rebate must be used against drive off will confuse a lot of people.
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Saying the rebate doesn’t go into the drive-off will create more confusion. Let’s say the normal drive-off is equal or less than the rebate. The rebate would cover it and it would what people mean by zero drive-off. The correct term should be something like zero customer cash.
This isn’t how it goes every time I lease in California.
With Volvo in CA, the rebate needs to be “customer facing.” If it’s not, the dealer risks not getting reimbursed for the rebate.
I think the $1000 rebate actually makes up part of the sales price, so basically I was getting a $5.4k (10%) dealer discount off MSRP and then a further $1k from the Volvo rebate(12% total discount). I thought the $1k was on top but think it was actually factored into the sales price. So in summary, what I was being offered was more or less what the lease calculator was telling me I should be offered.
If anyone wants this T6 in SoCal, I didn’t go for in the end, so let me know and I can tell you where to get it.
In the end we have decided to take a different deal. Its basically the same discount but on a cheaper T5 XC60:
36 months, 15k a year
2018 XC60 T5 Momentum with Vision,Convenience and 12.3" display
MSRP: $50,055
Sale Price: $43,902 (12% - I believe includes the $1000 Volvo rebate)
MSDs: $6,000
MF: .00059
Residual: 54%
Downpayment other than drive offs: $0
Drive offs incl first month payment and tax: roughly $1310
Monthly Payment: $507 + tax
I’m actually closing this deal tonight so if anyone thinks I’m making a huge mistake, let me know. Probably could get a better deal in the next month as the 2019s roll out but need a car now.