2015.5 Volvo S60 T6 Platinum deal

rarebmw

Pursuant to advice I received on the BMW forum here, I started looking seriously at Volvo S60s... and I've got a deal on the table that sounds OK, but still feels like it has a lot of room. But I'm looking for confirmation.

It's a 2015.5 S60 T6 Platinum, with options taking it to MSRP of 47,975. Invoice 45,152. The dealer out of the box offered me invoice, plus $3000 in incentives from Volvo. That, plus my $4000 up front got me a payment of $488 according to them. That sounded nuts to me and I said so. The BMW deal on the table is a 2015 328i with options to $49,600, with my $4000 up front at $434/mo. Both are 39 month, 10K/yr leases. There's no way a car with a lower MSRP and greater incentives should cost $50/mo more. BMW's financing is not THAT great!

After I left, the Volvo dealer called, offering to match the $434/mo.

Reading elsewhere here, I see Volvo offering MF of .00006 (really... 4 zeroes and a 6?) with a 57% residual. So it would break down this way:
MSRP: $47,975. Price: $45,152 (aka, invoice). Sales tax (this is Texas) adds 6.25%, or $2822. Volvo's $3K. My $4K. Say $1000 for first, title, and registration. That gets me to a cap cost of $41474. 39 months @ 0.144% (MF .00006) and a residual of 57% should produce a payment of $379.xx/mo.

OK, that's probably a "no profit" deal and I understand I need to let the dealership make a bit of money... How much is reasonable? Adding a $1000 would take the payment up to $404. Adding $2000 takes it up to $430.

Or is there more money that I'm not aware of?

It's a tough call for me between the BMW 328i and the Volvo S60 T6 at the same payment. I'd welcome comments on THAT proposition as well.

Thanks in advance! Decision day is tomorrow...

kyfdx

rarebmw said:

Pursuant to advice I received on the BMW forum here, I started looking seriously at Volvo S60s... and I've got a deal on the table that sounds OK, but still feels like it has a lot of room. But I'm looking for confirmation.

It's a 2015.5 S60 T6 Platinum, with options taking it to MSRP of 47,975. Invoice 45,152. The dealer out of the box offered me invoice, plus $3000 in incentives from Volvo. That, plus my $4000 up front got me a payment of $488 according to them. That sounded nuts to me and I said so. The BMW deal on the table is a 2015 328i with options to $49,600, with my $4000 up front at $434/mo. Both are 39 month, 10K/yr leases. There's no way a car with a lower MSRP and greater incentives should cost $50/mo more. BMW's financing is not THAT great!

After I left, the Volvo dealer called, offering to match the $434/mo.

Reading elsewhere here, I see Volvo offering MF of .00006 (really... 4 zeroes and a 6?) with a 57% residual. So it would break down this way:
MSRP: $47,975. Price: $45,152 (aka, invoice). Sales tax (this is Texas) adds 6.25%, or $2822. Volvo's $3K. My $4K. Say $1000 for first, title, and registration. That gets me to a cap cost of $41474. 39 months @ 0.144% (MF .00006) and a residual of 57% should produce a payment of $379.xx/mo.

OK, that's probably a "no profit" deal and I understand I need to let the dealership make a bit of money... How much is reasonable? Adding a $1000 would take the payment up to $404. Adding $2000 takes it up to $430.

Or is there more money that I'm not aware of?

It's a tough call for me between the BMW 328i and the Volvo S60 T6 at the same payment. I'd welcome comments on THAT proposition as well.

Thanks in advance! Decision day is tomorrow...

I show the T6 Platinum residual as 56% for 39/10... but, otherwise your numbers are pretty close... Your CAP adds up to 41974, though, not 41474. Still, only about $10/mo. more..

With all those rebates, I wouldn't put any more than $1000 of my own money up, though.. If the price is $1000 higher and you only put up $1000, then the payment is about $495/mo.

rarebmw

Thanks, kyfdx. And thanks for the correction.

I'm not sure how you get to $495/mo, but I agree that given the ridiculously low MF, it doesn't make sense to pay more than necessary up front.

Plugging in 47975 MSRP, 56% Residual, $45,154 price+6.25% sales tax, less $3K from Volvo and $1K from me up front - but letting the dealer keep $1K from Volvo - I get a cap cost of 44974. Over 39 months at MF .00006 gets me to $468.59.

I know $2K of the Volvo money is "Conquest". Do you know what the other $1K is? Is the "first month payment" on top of that, or part of that?

kyfdx

rarebmw said:

Thanks, kyfdx. And thanks for the correction.

I'm not sure how you get to $495/mo, but I agree that given the ridiculously low MF, it doesn't make sense to pay more than necessary up front.

Plugging in 47975 MSRP, 56% Residual, $45,154 price+6.25% sales tax, less $3K from Volvo and $1K from me up front - but letting the dealer keep $1K from Volvo - I get a cap cost of 44974. Over 39 months at MF .00006 gets me to $468.59.

I know $2K of the Volvo money is "Conquest". Do you know what the other $1K is? Is the "first month payment" on top of that, or part of that?

Volvo money changes all the time. I see $2500 dealer cash, plus up to $500 for 1st payment, and also complimentary factory maintenance for 3yr/36K miles..