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2013 and earlier Volvo XC90 Lease Questions

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  • utexas06utexas06 Member Posts: 55
    2007 VOLVO XC90 LEASE OFFER1


    2007 XC90 3.2



    "Sign and Drive"



    Lease for $459 per month for 24 months



    With $0 Cash Due at Signing



    No Security Deposit Required



    Excludes Taxes and Registration Fees

    1
    Lease

    Not all lessees will qualify for financing through Volvo Car Finance North America. Lease payments may vary, as retailer determines price. Residency restrictions may apply. For special lease terms, take new retail delivery from retailer stock between June 1, 2007 and July 9, 2007. Lessee is responsible for excess wear and mileage over 10,500 miles/year at $0.20 / mile. Offer available at participating retailers only, see participating retailer for qualifications and complete details. Car shown with optional equipment at additional cost.



    * "Sign and Drive" offer requires $459 of lease bonus to be applied toward first month payment.
  • rfallsrfalls Member Posts: 9
    The MF and residual for this car (24 month lease) is 65% and .00164.

    Look forward to your thoughts.

    Thanks
    ---------------
    Car_Man:

    You may be on vacation or underwater with all the requests you get but if you have some time and are checking the board, I am trying to get the residual and MF for the following:

    2007 Volvo XC90 3.2L AWD

    Ice White, Sandstone Leather
    Premium Package
    Versatility Package
    Convenience Package
    Wood Steering Wheel
    Climate Package

    36 Month Lease
    12,000 Miles/Year

    MSRP is $44,925 and sale price is $38,407.

    Also, the dealer is telling me that Volvo Finance is only giving quotes now for 24 Month leases (the dealer surmises that this is due to a possible new model coming out in 24 months). I would appreciate the MF and residual for 24/12,000 as well.

    Thanks

    Rfalls
  • jklossjkloss Member Posts: 39
    What is the residual for 36 and 48 months (12,000 miles) for the V-8 Sport and non sport.

    Thanks
  • bodidbodid Member Posts: 88
    Where is Car_Man? Is he on vacation? I hope all is well...

    08's are out, at least in Westchester. NY. I'm looking for money factors/residuals (in NY) for the following 07's...

    - The 3.2 or the V8
    - 15 or 18K miles
    - 24 or 36 months

    -What discounts are available? I've heard about third party leasing discounts
    - Is below invoice attainable on the 07's? How much under invoice?

    I can do a deal now or wait till early August. Should I wait or do it now?

    Thanks so much. These forums are a bit thin, and with a lot of mis-information without your presence, Car_Man.

    Bo.
  • jklossjkloss Member Posts: 39
    Have you seen the 08's and if so what are the changes
  • dme330idme330i Member Posts: 3
    Thought I'd share my experience with University Volvo in Charlotte. Got a great quote from the Internet Sales Manager for a 3.2 FWD, versatility, premium, climate and wood steering wheel.

    MSRP $43,550
    Negotiated Selling Price $32,000
    Rolled in Acq Fee ($595)
    Rolled in SC Sales Tax ($300)
    Rolled in Doc Fee ($349)
    MF = .00215
    15K Miles/Year - 36 Months. Residual = 43%
    Out of Pocket Money (1st month + tags + misc) = $600

    Monthly Payment $508.
  • bodidbodid Member Posts: 88
    Wow, 11K+ off the MSRP, excellent job. What bank did you go through, and how did you do it? What could you get on a V8?
  • bodidbodid Member Posts: 88
    Could you go over the MDX numbers? Was it a base MDX? What were the MF/residual numbers, MSRP, selling price?

    Bo
  • manuhkmanuhk Member Posts: 3
    hi Bo I'm more than happy to give you the details on the base mdx
    msrp:$40655 with dest charge
    selling price: $37700
    mf:0.0027 residual 50% $20328
    48 months $505/month total due at signing $3850 including 8.75 tax and all lic & doc fee plus free rubber mat wheel lock and cargo mat and cover and 1 put no money down
    i test drove both xc 90 and mdx i feel the xc90 with $7000 incentive is better deal but with higher resale value and better handling and power mdx is worth at this price but xc 90 is well built and feel more solid and a safer suv without question i hope it helps you btw this forum and car-man is the best thing ever for us car buyer You might not get the car at invoice but at least the dealer won't be able to rip you off with all the info from this forum
    Car-Man you are the-the best :D
  • bodidbodid Member Posts: 88
    Can someone help me? I'm seeing a lot of MF's; .0027, .00215, .00164...
    Could someone put this all in perspective like the MF's for the AWD 3.2, the V8, the V8 sport? I'm getting confused. I know the dealers have some leeway on the mf's. I just want to know where the starting points are for these models.

    Bo.
  • bodidbodid Member Posts: 88
    I just got off the phone with Big Dee Volvo in Elmsford, NY. Salesman said they will have 08's available as of July 5th. Does anyone have any idea if it makes sense to wait for the 08's or jump on available 07' inventory which by now is thin. From what I was told, there's not a huge difference between the 07's/08's except for auto dim rear view mirror (standard of the 3.2 for 08'), and a few of the packages...

    I understand the big incentives for the 07's run through July 9.

    Anyone care to comment or have more information?
  • utexas06utexas06 Member Posts: 55
    I was in my local Volvo dealership this afternoon looking into the current 24 month lease offer on the base model XC90 and the sales manager made me an offer on an in stock model which was totally loaded. I'll list the specifics. Let me know if you all think this is a great deal.

    2007 XC90 3.2 AWD
    +Magic Blue Metallic Paint
    +Sandstone leather interior
    +Premium Package
    +Versatility Package
    +Climate Package
    +AWD
    Total MSRP: $45,075.00
    Selling Price: approx. $39,990
    Payoff trade in
    $557.10/month X 24 months (Acquisition fee, TT&L, tax rolled in)
    10,500 miles/year
    $557.10 first month due at signing!!!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    OK, parklife, here's the information that you're looking for. Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2007 Volvo XC90 V8 with 10,500 miles per year are .00105 and 68%, respectively. The numbers for an otherwise identical lease of an '07 XC90 3.2 FWD 7 Passenger are .00073 and 64%. Volvo is currently providing $2,000 lease cash on this model. Make sure to take this cash into account when negotiating the capitalized cost for your lease. It has much larger cash incentives available for leases through independent banks.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi dadof. The large discount that you are being given on the XC90 that you are interested in leads me to believe that your lease is being run through an independent bank instead of through Volvo Finance. Volvo is providing huge incentives on leases of this model through third parties right now. Specifically, it has a total of $8,000 in cash incentives on '07 XC90 3.2 AWD 7 Passenger models. Add this incentive to the approximate spread of $3,100 that this vehicle has between its full MSRP and its dealer invoice price and there is a total of just over $11,000 to play with during negotiations. The $10,000 discount that you are being given isn't bad, but you may want to stop by the following discussion to see how much other community members have paid for similar vehicles lately: "Volvo XC90: Prices Paid & Buying Experience".

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi houstonfamily. The vehicle that you described has a spread of around $3,100 between its full MSRP and its dealer invoice price. Plus Volvo is currently providing a $2,000 cash incentive for leases of it through Volvo Finance and $8,000 (for the 7 Passenger model) for leases of it through independent banks. If I was in the market for this XC90 right now, I personally would shoot for a discount of $4,000 to $4,500 on a Volvo Finance lease and $10,000 to $10,500 on a lease through an independent bank. Make sure to stop by the following discussion to see how much other community members have paid for similar vehicles lately: "Volvo XC90: Prices Paid & Buying Experience".

    Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of an '07 XC90 3.2 FWD 7 Passenger with 10,500 miles per year are .00073 and 64%, respectively. The numbers for an otherwise identical 36 month lease are .00150 and 54%. If you opt to lease through an independent bank the dealer will arrange your deal for you. The banks that you mentioned in your post do not deal directly with the general public.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kylechoffman. The XC90's lease program varies depending upon a number of factors including trim level, term, and mileage allowance. If you tell me exactly which XC90 you are interested in, how long you want to lease it for, and how many miles per year you need to be able to drive it I will be happy to give you an idea of what its current program is like.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi carguy39. The $395 fee that you see mentioned in your contract is what is known as a disposition fee. Many banks charge this fee. They will usually waive it for consumers who opt to lease another vehicle through them.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi mcmaddox. You're doing the right thing by shopping around. You never mentioned the selling price of the XC90 that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the vehicle that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what its selling price is.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings RFalls. You never mentioned the selling price or MSRP of the XC90 that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this vehicle's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

    As far as this model's lease program goes, if you were to lease an '07 Volvo XC90 3.2 AWD 7 Passenger through Volvo Finance right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00167 and 54%, respectively. When negotiating your lease on this vehicle make sure to take the $2,000 lease cash that is available on Volvo Finance leases of it. It has much larger cash allowances for leases of this model through independent banks.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi letch. I don't believe that I have seen the advertised lease payment that you mentioned. What model is it on? If you tell me the exact model that you're interested in I would be happy to give you an idea of what its current money factor and residual value are like.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey Rfalls. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Volvo XC90 3.2 AWD 7 Passenger with 12,000 miles per year are .00167 and 54%, respectively. Volvo is definitely not only offering 24 month leases right now, but its 2 year lease program is pretty attractive. The numbers for an otherwise identical 24 month lease are .00053 and 65%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi tdkeator. Do you know what your XC90's MSRP is? That would be a very useful number because it would show me how much of a discount you are being given on it and it would enable me to use Volvo Finance's lease program to estimate what your payment should be. Let me know what it is and I'll tell you what I think.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Bo. Volvo is currently providing a $2,000 cash incentive on leases of any 2007 XC90 through Volvo Finance. Its cash incentives on leases through independent banks are much higher than this. Specifically, Volvo is providing an $8,500 cash incentive on leases of the '07 XC90 V8 through third parties right now.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings radoncgs. Volvo is currently providing a $2,000 cash incentive on leases of any 2007 XC90 model through Volvo Finance. It has much larger cash incentives for leases of the XC90 through independent banks, but they vary by trim level. If you tell me exactly which XC90 you are interested, how long you want to lease it for, and what mileage allowance you need I would be happy to give you an idea of what Volvo Finance's current money factor and residual value are like.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here's the information that you're looking for, jkloss. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Volvo XC90 V8 with 12,000 miles per year are .00171 and 56%, respectively. The numbers for an otherwise identical 48 month lease are .00186 and 47%, respectively. When negotiating your lease on this vehicle, make sure to take the $2,000 lease cash that Volvo is providing on Volvo Finance leases of it into account.

    Car_man
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  • rfallsrfalls Member Posts: 9
    Car_man:

    I want to confirm this is correct. 24 months though Volvo finance for 2007 Volvo XC90 3.2 AWD 7 Passenger is MF of .00053 and residual of 65% and lease cash of $2000. Through a third party lender, the lease cash increases to $8000 (what are the MF and residuals being offered by third party lenders).

    It sounds like I could still do much better with the deal I am being offered.

    2007 Volvo XC90 3.2 AWD 7 Passenger
    Climate, Premium, Versatility & Wood Steering.
    Lease through Volvo Finance

    MSRP: $44,925.00.
    Invoice: $41,657.00
    Sales price: $38,837.47
    Spread between MSRP and invoice: $3268
    Spread betweeen MSRP and sales price: $6087.53
    Acquisition Fee: $595.00
    Processing Charge: $100.00
    Tag & Title: $227.00
    Taxes (.05% in MD): $1946.8
    Total Net Cap Cost: $41741.34
    MF: .00164
    Resid: 65%

    Monthly payment of $638.85 (everything rolled in); no money down.

    I would appreciate your further thoughts and thanks for your input.
  • bodidbodid Member Posts: 88
    You can do better. Same car at 35,500 and I can do better but it doesn't come with bi-xenons and that's a requirementr for me (I'll never go back). Where are you? This was quoted out of Keystone Motors Volvo. I've heard quotes around that number, so you can still do a lot better...

    Bo
  • bodidbodid Member Posts: 88
    Car Man,

    Why am I seeing such a range of MF's with the third party banks? Got an intial quote for 3.2 AWD 48,902 MSRP/38,300 selling price, 36 mo/15K miles, mf of .00260 from Ameribank Credit. Can I request using another bank? How muck leeway do dealers have with the mf's? Is there a third party bank that has the best numbers?

    Bo.
  • jklossjkloss Member Posts: 39
    I was offered the following on a V-8 Sport with MSRP of $53997 - 24 month - 120000 miles - $37217 residual and a monthly payment of $569 with no payment at closing - Sign and drive.

    Anybody have any thoughts as if this is a good deal?
  • bodidbodid Member Posts: 88
    Yes, that's the best I've heard on a sport yet. That's a 16K drop. We need more people to give us their quotes. I've been quoted for a V8, not the Sport...52,077 MSRP/39,670 residual. What were you quoted for money factor and residual?

    Bo.
  • bodidbodid Member Posts: 88
    I'm looking for a 3.2 AWD XC90 for 36 months 18K miles. I'm looking for money factors, residuals through third party banks, and how much incentive money is available. One saleperson quoted a 21+% discount from MSRP (45,075.-35,500). I'm wondering how much more room there is to deal.

    Bo
  • jklossjkloss Member Posts: 39
    The residual was 37217 and the cap cost was 47752 with a money factor of 0.00105 your basic offering from Volvo
  • dme330idme330i Member Posts: 3
    Ended up going with 5th 3rd Bank. We ran some numbers on the V8's - didn't push it, but the first offer from the dealer was $11,500 off. Ran some numbers on a similarly equipped V8 and monthly was around $620. Also ran some numbers on a V8 sport - $678/month.

    Here's some good info. Take these numbers + the spread from MSRP and Invoice to negotiate your deal. Alternative (i.e., third party bank) lease deals yield the best numbers. Also, remember to ask the dealer if they are giving you the buy rate on the MF. The finance manager will try to mark up.

    XC90 FWD Base and 5 passenger
    Retailer Market Allowance - $3,000
    Alternative Lease Cash - $6,500

    XC90 FWD 7 passenger
    Retailer Market Allowance - $3,000
    Alternative Lease Cash - $8,000

    XC90 AWD 5 passenger
    Retailer Market Allowance - $3,000
    Alternative Lease Cash - $6,000

    XC90 AWD 7 passenger
    Retailer Market Allowance - $3,000
    Alternative Lease Cash - $7,000

    XC90 V8
    Retailer Market Allowance - $3,000
    Alternative Lease Cash - $8,500
  • rfallsrfalls Member Posts: 9
    Thanks

    Good info.

    One thing to keep in mine on lease through Volvo is their wear & tear policy (they give you another $1000 credit as well).

    Current Volvo has body damage (shop estimates are in the $1800 range). Volvo is only charging $50 on the return.

    Not sure what would have happened had we leases through a third party bank.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Bo. Volvo Finance's buy rate lease money factor and residual value for a 24 month lease of a 2007 Volvo XC90 V8 with 15,000 miles per year are .00105 and 65%, respectively. The numbers for an otherwise identical 36 month lease are .00171 and 54%. The residual values for these vehicles would be 1% lower with 16,500 miles per year and 2% lower with 18,000.

    The XC90 3.2's lease program is different for FWD and AWD vehicles as well as for 5 Passenger and 7 Passenger models. I need you to be more specific about the exact model that you want in order to give you an idea of what its current program is like.

    It is difficult to say what Volvo's fourth quarter lease program for the XC90 will look like. I don't anticipate it getting significantly better, but one never knows for sure.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Congratulations on getting such a good deal on your XC90, dme330i. Thanks for taking the time to share the details of your lease with everyone. Enjoy your new ride :) .

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey Bo. I suspect that it will be less expensive to lease a 2007 XC90 than it will be to lease a 2008 model when it is first introduced. Of course, I won't know that this is the case for certain until I see what the '08 model's lease program is like.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey rfalls. Yes, the lease program and cash incentives that you posted are correct. The money factor that you were quoted for this vehicle is so much higher than Volvo Finance's buy rate that it leads me to believe that your deal must be through an independent bank. If this is the case, then the $6,000 discount that you are being given is not adequate. Including incentives, there is a total spread of $11,200 between this truck's MSRP and invoice price for a lease of it through an independent bank. You may want to try comparison shopping with another dealer or two.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey Bo. Dealers usually have computer systems that enable them to search for the independent bank that is offering the most attractive lease program on a particular vehicle in your area at any given time. If you do not like the terms of the bank that the dealer is trying to run your lease through you can always ask them to use a different one, but chances are they are already using the most attractive program that is available in your area. Better yet, try comparison shopping with another dealer or two to see what bank they run your lease through.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jkloss. You never mentioned the selling price of the XC90 that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the model that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what its selling price is.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Bo, I believe that you are confusing the residual value of the XC90 that jkloss is considering leasing with its selling price. A $16,000 discount would be an amazing, and probably an impossible deal, for an XC90.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Bo , I don't personally keep tabs on the lease programs that are being offered by independent banks, just manufacturers' captive finance companies. I can tell you though that Volvo is currently providing a total cash incentive of $8,000 on leases of '07 XC90 3.2 AWD 7 Passenger models through independent banks. Add this to the $3,000 or so spread that there probably is between this vehicle's MSRP and dealer invoice price and you have a total of $11,000 to play with.

    Car_man
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  • dme330idme330i Member Posts: 3
    rfalls quote - One thing to keep in mine on lease through Volvo is their wear & tear policy (they give you another $1000 credit as well).

    Great point. Need to ask about the wear and tear policy of the third party lenders. Luckily the lender that we went with has a policy to cover up to $2000 in wear and tear.
  • king31king31 Member Posts: 6
    I'm looking at buying a 2007 XC90 for my wife. Just the 5 passenger base 3.2 FWD with premium package. MSRP is $39,825 with an invoice of $37,522. If I was going with a third party bank what price should I being shooting for? Thanks...Lee
  • jklossjkloss Member Posts: 39
    This is the final figures that I agree upon for a XC90 V8 Sport

    MSRP - $53,997
    Cap Cost - $48,553.45
    Residual - $36,717.96
    MF - .00075
    Term - 24 months
    Monthly Payment: $557.10 + tax of $30.65 = $587.75
    Due at signing - $879.30 (Includes 1ST month and license/registration)

    This thru Volvo Finance

    Thought it was a good deal so pulled the plug. Would like your comments. Probably pick up the car tonight or tomorrow.
  • bodidbodid Member Posts: 88
    Car_Man,

    The XC90 3.2 would be AWD, 7 pass, 18K miles, 24/36 months

    Bo
  • bodidbodid Member Posts: 88
    How many miles/yr?
  • jklossjkloss Member Posts: 39
    Miles per year is 11,000
  • bodidbodid Member Posts: 88
    I thought the MF for the V8 was .00105? Excellent deal for 24 months, especially through Volvo. What was invoice, and the residual? I've been offered a loaded V8 Sport for 582. for 3 years, but he hasn't given me any numbers to work off of yet. Where did you get this deal?

    Bo
  • jklossjkloss Member Posts: 39
    As far as I can tell from the paperwork the MSRP is 53,997 and the cost would be 50,762 and from that price the reduced it further by 2,862 for a cap cost of 47,900 then they added the Acquisition cost of 595 and doc fee of 58.45 (the doc fee was taken off the up from money.)

    This was done in Chicago but registered in Wisconsin so that amounted to a savings of almost 4000 over 24 months because of the Illinois tax situation.
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