XC90 Lease - What am I missing?

Ask the Hackrs
1

Hi everyone, newbie here. Followed the lease calculator provided but can’t get anywhere near the numbers the dealer quoted, I am hoping that someone can help me out and identify what I am missing! Would also be interested in hearing how good/bad these figures are!

2018 Volvo XC90 T6 Momentum Plus
MSRP: $60,800
Sales Price: $53,300
Tax Rate: 6.5% (IL)
Term: 36 Months
Miles: $10,000
MF: 0.00113
Residual: 57%
Down payment: $0
No MSDs available
1st payment TTL not included in monthly payments

Quote: $789 / month including tax, my math is more in the $640 zip code.

Thanks in advance for your help!

2

If that is the monthly price they are telling you then I’m guessing it’s not the selling price they are using. I’d make sure that is the actual number. It also looks like they are not using the standard buy rate of .0013.

3

Couple of things jump out:
-Standard MF is actually .00130
-Residual is actually 59% for 10k miles per year

Did they roll the acquisition fee into the monthly?
Did you account for the destination charge of $995-ish? Did they roll that in?
Were any of the incentives taxable?
Is Illinois a state where you pay tax on the total sale price?

4

Thanks for the quick replies!

  1. Need to find out if they rolled any upfront fees into the payments (possibly)
  2. Need to find this out as well
  3. Not that I am aware of, but will confirm
  4. No, just on the part of the lease that you use

Question: What is the best way to negotiate the residual (is there evidence that I can use in support versus I read it on a forum).

Thanks again!

5

The dealership can makeup a lot of things but the residual value is something they can’t manipulate. The bank sets the residual and is locked. If they are using a different residual then details if your deal are inaccurate. I believe they are using a 39 month term not 36 months.

6

Does this not have at least 3k in holiday monies?
A more relaistic cap cost is 50K
Why no MSDs?

7

Has anyone got any idea what the new incentive programs, residuals, money factor, dealer cash numbers are for January for the XC90?

8

I had a quote for a T5 / Momentum yesterday before the Jan 2nd “deals” ended. Didn’t seem great. I also had trouble getting to the same numbers quoted but turns out the MF was higher than originally told

MSRP: $56030
Sales Price: $49443
Tax Rate: 9% (CA)
Term: 39
Miles: $10,000
MF: 0.00157
Residual: 57.9%
Down payment: $0
No MSDs available as well

quoted $640.40 a month

9

I’d like to know as well.

10

No MSDs available sounds worrying - don’t tell me Volvo has abolished them just as I have my finger on the trigger :tired_face:

11

Did you try going on Volvo site?

12

That’s a load of horse crap, there is most definitely MSD’s available with Volvo. If they have the MF marked up they obviously don’t want you bringing it back down again.

When I got mine last night the woman in finance had trouble with setting them up and told me it was the first time she had ever done them.

13

My dealer was unaware of the MSD program. I sent them a link to the Volvo website and they had to “do their research”.

They ended up coming back and saying that they could only do 3 payments upfront for the MSD, which will result in a return of ~8% annually of the three years, still worth it IMO.

Question for those who have used the MSD program before, how did you get up to 10 and what was the math behind it? Thanks!

14

I just told them I wanted to max out on MSD and they input it in the system.

Each MSD costs a monthly payment rounded up to the nearest $50 (if your monthly is $335 it goes to $350). Each MSD will lower your MF .00005 and the lowest it can go is 00001. You’re able to purchase up to 10 MSD’s. Everything is based on prediscounted payments.

15

Could somebody be a superhero and post the details on the new XC90 lease programs? :grimacing:

16

I haven’t seen them posted in Edmunds yet so we wait till posted or someone gets it from a dealer.