Yet another XC90 thread - out-of-state lease questions

Ask the Hackrs
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Yes, there are a ton of existing XC90 threads and I’ve read them all over the past couple weeks. Note that the numbers below are not final negotiations and I likely have a bit to trim still, but aren’t necessarily horrible (I think). This post is more about questions and concerns about leasing from an out of state dealership though.

I am looking at an XC90 T6 MOM and they generally all come with both packages, so not much to say there - all vehicles I am looking at are around 60K MSRP. I live in AZ, but due to the crappy numbers I am getting (and comments from reading other threads), I expanded my search to SoCal dealerships as well. Some of my questions will likely be answered by dealerships as they get me full work-ups so I can properly compare all options, but…

I have two main options for getting a vehicle from SoCal: driving it back or having them ship it to me. Each option has its own implications, but I am purely focused on the numbers at the moment. Apparently if the wheels touch CA pavement (I drive it home), CA tax needs to be paid. Dealerships tell me that shipping the vehicle to me would be roughly about the same cost, but I am suspicious that it’d really get up to the around $1500 they initially quoted for this. If local CA taxes are paid for a drive-off, does AZ take that amount into account, or is it every state for themselves?

Additionally, MSDs are calculated off of the total monthly cost including tax, correct? Dealerships have told me the amount is rounded up to the nearest $50 increment, but I have seen some per-MSD rates of $x75 on reports. Is it really in $25 increments? Regarding out of state leases, local taxes are applied when the car is registered to the new state. This does not impact MSDs, as they will have already been paid according to the original deal though, correct?

Anyway, here are the numbers I am currently at:

AZ: (lowest I could get from any of the 3 dealerships - not great deals)
OPTION 1 LEASE XC90 T6 36/10k
MSRP: 60505
Dealer Price Reduction: 4550 (matched the CA amount, but has claimed to not go any further)
Incentives: 3000
Selling Price: 52955
Money Factor: 0.0013
Residual: 59
Acquisition Fee: 995
Title/registration fees: 725
Other fees (with description): 395 - Doc
Total Due at signing: 2395
Tax percentage: 8.6
Monthly Payment (including tax): 688

CA:
OPTION 1 LEASE XC90 T6 36/10k
MSRP: 59700
Dealer Price Reduction: 4550
Incentives: 3000
Selling Price: 52150
Money Factor: 0.0013
Residual: 59
Acquisition Fee: 995
Title/registration fees: N/A
Other fees (with description): 80 - DOC
Total Due at signing: 1200
Tax percentage: 7.75 (CA)
Monthly Payment: 612.48 + tax

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You are leasing, right? Tax is only collected on down payments and monthly payments. The leasing company will figure out any difference for you once the lease Is executed. Other than that the only difference looks like the doc fee. With this I would just take the local deal. It is a PIA to register a leased vehicle from Ca to AZ. It takes time and a few trips to the DMV. Unless your difference is $2000 or more just shop local. With that said I would continue shopping your deal in Ca. It is the end of the month and year, you have 2 dealers giving you the same price, keep shopping and see what else you can get.

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Hey blahness, I’m in Scottsdale negotiating the XC90 T6 (but the R-Design) with the same dealers. I’m surprised by how unmotivated they are to make a deal before the year end. I PM’d you. Text me and maybe we can collaborate and tag-team them for a nice deal.

Any suggestions welcome!!!

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I finished up the deal: 2018 Volvo XC90 T6 MOM+ Arizona

It certainly isn’t the best deal on these boards, but it was enough for me. I would also say that this is probably the best deal one can expect to get at this current moment in the Phoenix valley. One dealership threw in the towel at 3K off (not counting HSE), another had a floor of around $4500 off, and a third was willing to go down enough to get me under $650 w/ tax for MSD purposes. After some minor theatrics, I pulled the other back in and executed the deal.

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Hey! I saw your post and I am in the same boat!

I live in Phoenix and am striking out with the 3 dealerships (especially with the low incentives currently!)

I am in talks with CA dealerships right now, but feel like im wasting my time if i have to go thru a bunch of hoops to bring the car here.

Can you pm me and give me some more details about the final deal (which dealership, salesperson, etc)… I’d like to work with someone who I know at least got someone a decent deal!

Thanks!

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PMed. Happy hunting!