Lease Payment Changes 2023-2024

felipe07tx

Hello - I am wondering if anyone would like to share or weigh their opinion regarding the changes in lease payments/pricing in the last year or two. I am turning in a 2021 lease soon and much like the rest of America am finding shocking changes. The interest rates/MF are definitely higher on some models, but residuals seem strong still. Incentives are hit and miss. It seems dealer discounts and tax credits are non-existent. I have found a few dealers offering generous discounts to offset the higher MF which is a relief. I am just too stubborn to accept every finance manager telling me "Well you'll never get another payment like that these days". Unless of course you shop down market - way down market.

What have you experienced? My Volvo dealer quoted me a payment that is almost $200 higher per month for a similarly equipped lease on an XC60 with similar residual and MF from my 2021. Granted this is $0 down lease example. Would you be willing to share your payment changes on similarly priced vehicles from recent lease turn ins?

Michaell

felipe07tx said:

Hello - I am wondering if anyone would like to share or weigh their opinion regarding the changes in lease payments/pricing in the last year or two. I am turning in a 2021 lease soon and much like the rest of America am finding shocking changes. The interest rates/MF are definitely higher on some models, but residuals seem strong still. Incentives are hit and miss. It seems dealer discounts and tax credits are non-existent. I have found a few dealers offering generous discounts to offset the higher MF which is a relief. I am just too stubborn to accept every finance manager telling me "Well you'll never get another payment like that these days". Unless of course you shop down market - way down market.

What have you experienced? My Volvo dealer quoted me a payment that is almost $200 higher per month for a similarly equipped lease on an XC60 with similar residual and MF from my 2021. Granted this is $0 down lease example. Would you be willing to share your payment changes on similarly priced vehicles from recent lease turn ins?

Only $200/mo higher? I've had members share stories of lease payments being as much as 50% higher as their previous lease.

My last lease was on a 2016 VW Jetta - payment was just over $200/mo. I think I paid a total of $50 in interest over the entire 3 years.

Today, a similar lease would likely run me $300-350/mo. I do $0 down leases, only paying the first payment at signing (in Colorado, we handle registration costs separate from the dealer, so I don't give them any money for that). Dealer and acquisition fees are rolled into the lease payment, and I have an accurate calculator I use to confirm that the dealer and I agree on all of our numbers.

My opinion - which is worth about as much as you expect it to be - is that once inventories start to pile up at dealers, you will see changes to the lease programs to move metal. Whether that's in the form of higher residuals, lower MF, or increased incentives may vary from one brand to the next.

The cost of money isn't going down anytime soon, I'm afraid.

nyccarguy

Another part of the equation that you left out is that MSRPs have jumped. There are deals to be had, but you have to hunt for them. 1st off, have you checked out the “lease questions” specific forum of the XC 60 to get Volvo Credit’s base money factor and residual value. Have you shopped multiple Volvo dealers in and out of your area? Look at their online inventory & target a specific vehicle they have in stock. Go to CarGurus and see how long they’ve had the car on their lot (if you can). Look at some Volvo xc60 specific owners groups on Facebook or forums to see what kind of discounts people are getting. With a current Volvo lease, you certainly qualify for loyalty if it is offered this month. Have you considered paying down the interest rate by giving Volvo Multiple Security Deposits?

Use all the information you gathered and email the dealership which stock number/xc60 you are specifically interested in. Tell them that you have excellent credit, want a specific dollar amount or percentage off of sticker, that you currently lease a ‘21 xc60 and qualify for loyalty and are ready to take delivery by the end of the week/month. Tell them that you’ll give a perfect survey. Do the work for the dealership. Let us know how you make out.

stickguy

if you have Rodo in your area, download the App and enroll. Even if you don't go through them, it is a good way to get real life quotes. And if you happen to see something you want, can just click accept you have the process started on a real car.

felipe07tx

Michaell said:

felipe07tx said:

Hello - I am wondering if anyone would like to share or weigh their opinion regarding the changes in lease payments/pricing in the last year or two. I am turning in a 2021 lease soon and much like the rest of America am finding shocking changes. The interest rates/MF are definitely higher on some models, but residuals seem strong still. Incentives are hit and miss. It seems dealer discounts and tax credits are non-existent. I have found a few dealers offering generous discounts to offset the higher MF which is a relief. I am just too stubborn to accept every finance manager telling me "Well you'll never get another payment like that these days". Unless of course you shop down market - way down market.

What have you experienced? My Volvo dealer quoted me a payment that is almost $200 higher per month for a similarly equipped lease on an XC60 with similar residual and MF from my 2021. Granted this is $0 down lease example. Would you be willing to share your payment changes on similarly priced vehicles from recent lease turn ins?

Only $200/mo higher? I've had members share stories of lease payments being as much as 50% higher as their previous lease.

My last lease was on a 2016 VW Jetta - payment was just over $200/mo. I think I paid a total of $50 in interest over the entire 3 years.

Today, a similar lease would likely run me $300-350/mo. I do $0 down leases, only paying the first payment at signing (in Colorado, we handle registration costs separate from the dealer, so I don't give them any money for that). Dealer and acquisition fees are rolled into the lease payment, and I have an accurate calculator I use to confirm that the dealer and I agree on all of our numbers.

My opinion - which is worth about as much as you expect it to be - is that once inventories start to pile up at dealers, you will see changes to the lease programs to move metal. Whether that's in the form of higher residuals, lower MF, or increased incentives may vary from one brand to the next.

The cost of money isn't going down anytime soon, I'm afraid.

Agreed. It is certainly expected to increase with inflation and the MSRP being higher, as the other post stated. Texas is especially difficult with the sale tax enforcement on the price. In my last 3 luxury leases I obtained tax credits that essentially made my sales tax amount of $700 on a $56k vehicle. That helped. I appreciate the feedback! I am so resistant to trust dealers words given the spread and inconsistency pre-pandemic when working lease deals. Variants were crazy before, but now they try to use the inflation dilemma as their trump card.

felipe07tx

nyccarguy said:

Another part of the equation that you left out is that MSRPs have jumped. There are deals to be had, but you have to hunt for them. 1st off, have you checked out the “lease questions” specific forum of the XC 60 to get Volvo Credit’s base money factor and residual value. Have you shopped multiple Volvo dealers in and out of your area? Look at their online inventory & target a specific vehicle they have in stock. Go to CarGurus and see how long they’ve had the car on their lot (if you can). Look at some Volvo xc60 specific owners groups on Facebook or forums to see what kind of discounts people are getting. With a current Volvo lease, you certainly qualify for loyalty if it is offered this month. Have you considered paying down the interest rate by giving Volvo Multiple Security Deposits?

Use all the information you gathered and email the dealership which stock number/xc60 you are specifically interested in. Tell them that you have excellent credit, want a specific dollar amount or percentage off of sticker, that you currently lease a ‘21 xc60 and qualify for loyalty and are ready to take delivery by the end of the week/month. Tell them that you’ll give a perfect survey. Do the work for the dealership. Let us know how you make out.

Good catch! Very true. In this case, MSRP is up about $4k in a similar spec. I have priced out several dealers and rely on this forum's miracle support to get the MF and residual in advance. It has been a life saver for my last several leases.

I will keep all posted, and hope to see more feedback about lease payments paid recently! I don't see much follow up in the channels on negotiated deals.

Michaell

You didn’t mention that you were in Texas. Unless you get the sales tax credits, you’re paying a lot in sales tax. We have no insight as to how that works, or when they’re available.

felipe07tx

@Michaell said:
You didn’t mention that you were in Texas. Unless you get the sales tax credits, you’re paying a lot in sales tax. We have no insight as to how that works, or when they’re available.

According to the dealers I’ve used, they are allocated to each dealership on the quarterly basis. The dealer can add them to the deal to discount the value of the vehicle to offset the amount of taxes owed. It’s a HUGE help.