What is the preferred way to deal with a trade-in when leasing? Should I sell out right, pay the higher monthly payment and draw from the money received from the sale to pay for the lease?
Thanks for your breakdown. It clears things up a bit!
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LOL. Demo with 2k should be a 10% off MSRP from the few deals I see on XC90’s from a few years ago tho…… $82k and we’ll see what they say. No sweat off my back. There’s other options out there.
You realize @aronchi is a broker with no broker fee and offering 9% for a new unit without the hassle right?
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I do know he is a broker.
I do not know his fee structure.
I have no idea what he can do on a Volvo.
I do know he has a few good one-liners.
I also know he has an odd way of attracting customers.
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They are trying to help you. Your deal isn’t good and @aronchi has offered to help you do better. As you have acknowledged, you aren’t experienced with leasing. I would suggest working with @aronchi and ending up with a solid deal without having to hassle with the dealer.
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Then just say ”you’re getting a bad deal” instead of:
I’m waiting to hear back from the dealer re:$82k offer.
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In some states at some times it makes sense to trade in a car for tax benefit. Normally this doesn’t apply to a lease and never in Virginia since there is no tax benefits allowed for trading in a car with equity.
So yes, sell the car separately to highest bidder and use that money for lease payments. Even independent of the difficulty of separating the lease deal and used car deal, you don’t want to put a bunch of money down on a lease since if it is totalled you are likely to lose the down payment. The equity of the trade is just becoming a down payment.
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That make good sense. Thank you!
Exactly what i was going to suggest. Carmax for the trade. And I was happy to do the new car.
- Get the best bid for selling your existing car.
- Get the best offer for a new XC90 lease by clicking on Marketplace
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$66,000 adj cap cost + $18,000 down at 4.15% tax rate gets close to their sales tax. Don’t know the exact dealer fees and registration, but $2,092 line 16 = $995 acq fee + $950 dealer fees + $147 reg upfront and not taxed.
Well, you would know better than most regarding tax treatment in VA and fees. I plead complete ignorance on VA taxes. OP said the tax rate was 7% and I was basing my calculations on that.
And I’m not arguing with you about the tax rate, just saying. No idea why OP thinks it’s 7%. Down payment and fees are taxed, rebates are not.
Okay, I knew that the CCR and fees were taxable but didn’t realize that rebates are non-taxable.
And don’t forget to use some of that cash for any available hacks to lower the MF such as MSD or one-pay @gopropak
No one-pay on Volvo 
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How is this odd?
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