grabber2

Got a offer for Vovlo XC90 T5 36/10K lease after test drove. They did a run down & gave me the below:

MSRP: $49405 (Options: Heat seat ($500), Metallic paint($560), Leather Upholstery ($1400)
Sale Price: $44440
10% off MSRP

Residual %: unknown (but saw $28,5xx balance if i decide to purchase after lease)
Money Factor: N/A

$0 down
Monthly payment: $508

Upfront money: $3236
First month ($508) + Title & Plate ($341) + Bank Fee ($695) + Taxes 36 months (1691)

I just can't figure out the MF & residual.

SW17LS

Thats the residual.

Demand they disclose this or no deal

grabber2

Got the break down. Thanks

Residual: 58%
MF: 0.0096

SW17LS

So that shows the new car lending rate is 2.3%, but a MF of .0096 is 23.4%. Did they tell you .00096? That jibes with what they have shown here.

grabber2

Yes, that was a typo. Its 0.00096 or 2.3%

SW17LS

Cool, that looks like a fair lease to me.

grabber2

Not killer deal like some expert got. But I think its a good deal. Will try to push fro 2.3% to 1.9%.
Thank you

SW17LS

Go to edmunds and find out what the wholesale MF is, if you're already getting that it is what it is.

rld14

Is that a 2.0tT XC90?

Take it for an extended test drive first... We had one come in on trade and I was very underwhelmed. Still an absolutely gorgeous SUV tho, probably the best looking one on the market.

grabber2

Yup its the 2.0T. The XC90 is not the car for someone looking for power. 2.0T is good for everyday driving. The power delivery from the Dynamic was great. I admit Rx400h's delivery more smooth power. However, the standard features, safety, & technology on it are overwhelmingly awesome

grabber2

Got the car but lease term was changed from 36mo to 39mo due to Volvo offer 39mo. Monthly payment remain $508 per month. They changed the MF from 0.00096 (2.3%) to 0.00126 (3%). However, they lower the sale price from $44441 to $43959.18

Why did dealer raise the MF but lowered the sale price??

See the calculation attached.

SW17LS

Why did the dealer change it? Because they made more money this way.

bitkahuna

iTrader: (20)

this thread is enlightening. grabber2 - congrats on an awesome vehicle again, but it's sad the dealer still lied and switched things at the last minute... still looks like a good deal.

grabber2

Thanks...its a really good car.

I received explanation from a friend used to work in a dealer. He stated the term might be changed for the following reason:
Vovlo's July MF & Residual for XC90 T5 AWD was 0.00126 + 58% for 36/10k & 0.00126 + 56% for 39/10k. Their best MF for July for the XC90 T5 AWD was 0.00126. Said no one can get any lower than that unless its for fleet sale. They offer 0.00069 for the XC90 T6 AWD but T6 does not qualify for the $2000 lease bonus like the T5. It could be the reason they lowered the sale price to keep the agreed $508 per month. Someone can jump in if they can confirm this.

Only think I wasn't happy was the lease term switched from 36mon to 39mon. After expressed dissatisfaction to my sales person, he offered me $200 worth of extra stuff. I'm overall happy with the transaction.

radiologym

Hello, need advice on best way to handle my situation. I got 2014 RX350 that is third year into lease and got small outside scratches but nothing major, how can I estimate penalty when returning the lease to dealer? Lexus charges 25 cents per extra mile, right? Can I return car to Toyota dealer since I moved and no Lexus dealer near me? I understand that I have an option to sell the car privately or trade in to different dealer before lease ends, is there a big penalty for doing that before lease ends, say at 26 months into 36 months lease? Thanks!