Lease XC90

pennylane4

Hello
I went to the dealer yesterday after looking at the XC90 for over a year. I know it is the vehicle I want but they were not willing at all to negotiate on the MSRP. Is this typical? He did give me free floor mats. haha and I'm working on going from 10,000/miles per year to 12,000/yr but he seemed hesitant. The exact vehicle I want is at another dealer about 60 miles away and they will pick it up on Monday, do the deal on Tuesday.
I'm just wondering if it is typical for them not to budge on the MSRP. I've only purchased Hondas before in the past and was always able to get a couple grand off the sticker.
He said it is because Honda and the like offer dealer rebates, Volvo and other luxury cars do not.
I even offered to pay the car outright and he told me that doesn't help because they get money when I finance. The lease value is less then 1% so I'm not too worried about financing I just wanted the best price.
Also the MF was 56%
Can I ask for this to be lower/higher?
Thanks again
Crystal

kyfdx

pennylane4 said:

Hello
I went to the dealer yesterday after looking at the XC90 for over a year. I know it is the vehicle I want but they were not willing at all to negotiate on the MSRP. Is this typical? He did give me free floor mats. haha and I'm working on going from 10,000/miles per year to 12,000/yr but he seemed hesitant. The exact vehicle I want is at another dealer about 60 miles away and they will pick it up on Monday, do the deal on Tuesday.
I'm just wondering if it is typical for them not to budge on the MSRP. I've only purchased Hondas before in the past and was always able to get a couple grand off the sticker.
He said it is because Honda and the like offer dealer rebates, Volvo and other luxury cars do not.
I even offered to pay the car outright and he told me that doesn't help because they get money when I finance. The lease value is less then 1% so I'm not too worried about financing I just wanted the best price.
Also the MF was 56%
Can I ask for this to be lower/higher?
Thanks again
Crystal

We don't have the current Volvo numbers, so we can't verify them.

But, in regard to your other questions:

The new Volvo XC90 is very, very popular. That doesn't mean they all sell for MSRP, but it does mean they may not discount them as much. The Honda vs. Volvo thing is just pure BS, in general, though. When Volvo needs to move a model, they can throw as many incentives on it as any other make.

Salespeople do not care about your mileage allowance. That's up to you. Of course, a higher allowance comes with a lower residual, and that will raise the payment. To go from 10K/yr to 12K/yr will lower the residual exactly 1%. What was the dealer hesitant about?

If you know this is the vehicle you want, maybe they know also, and that's why they aren't budging on price?

Residuals are set by the bank, and can vary by model, term and mileage allowance, but the dealer can't change them. When you say the lease value is less than 1%, what exactly do you mean?

Michaell

My guess is we're talking about the money factor translating to an APR of less than 1%, which has often been the case for Volvos - when we had numbers.