Good on you for walking away. It does sound very steep. Ask them to waive these to close the deal. Check the title/registration fee in your specific state maybe to see what it amounts to. It could be that it is the current market driving these behaviors, and at the end it will be about how much you want the car and how much you are willing to pay for it. Financing and leasing is a common tactic for the dealers to add confusion to the deal and sneak in profits here and there. I don't know your specific situation but I too would have walked away just for the principal of it. My recent purchases are used and cash but one dealer charged me $350 in fees and the other $25 in what they call document fees...

 

Now is the worst time to buy/lease a vehicle. Unless you HAVE to, I wouldn't.

The "dealer fees" have crept up to $700-1000 in my area. Despicable!

 

Yeah that's how things seem to be. But, how much do brands like Volvo usually come down off sticker? 5-7%? Worth mentioning since, on the other hand, we can get a decent deal on our used car. So if I only get, lets say $2k, and not $4k off msrp on a new car, then that difference is probably canceled out by higher than normal value on our used car.

 

10% off was easy to get, pre-pandemic. 15% was achievable with some negotiating and depending on incentives. That could be a $10k difference, before taxes.

I've also found that dealers are low-balling trades. Dealers are listing similar configs to what I have for $45k but are only offering $35k. That was my experience at two different Volvo dealers. CarMax, on the other hand, is offering $40k.

 

Good to know.

 

If you don't know what an acquisition fee is or that it is a standard line item on any lease, you really need to do your homework before stepping back into a dealership. I recommend doing some heavy reading on leasehackr.com and if it is still overwhelming, there are some great brokers that can get you an awesome deal in exchange for a broker fee.

 

Thanks for the link. Good info on that site.

 

Dealer Fee $799
Non tax fees: $1121 (tags title are a couple hundred at most)
Money factor: .00220, or @5.28%
Residual: 57%

Thanks!

I found the Edmunds XC60 lease forum to be exactly correct when I did my lease. I agree the money factor seems very high, but I haven't been keeping tabs on rates lately.

 

Don't forget about the disposition fee as well. This isn't a Volvo thing; it's basically on all leases. It becomes a way to kind of keep people on the lease treadmill, but should be considered a cost for a lease vs buy analysis.

I'll echo what others are saying about this market being very in favor of the dealer advantage. With supply that is constrained, it means they need to get maximum margin per sale to offset the volume bottleneck. This also means comparing your particular purchase against historical experience should be taken with a grain of salt. Your best bet if you really are needing a new vehicle is to cross shop and really understand all your options. It's good to see you doing the extra legwork to understand the numbers and to ask questions.

 

We ended up ordering a BMW. We can order the exact features and colors and have it in 3-4 weeks. They build a number of models in South Carolina. Working with the BMW dealer was a breeze compared to the two Volvo dealers I talked to. Sales rep at BMW didn't try to hide any numbers (Volvo was reluctant to share money factor and residual), and was offering a reasonable money factor from the get go. I could go on but am cognizant of the fact this is a Volvo community I just don't know if I had bad luck or if its the way Volvo runs things. I mean, Friday we test drove two Volvos. Spent time talking to the sales guy. Asked him to send me numbers. Nothing since then (he has our email and cell #).

Maybe next time for Volvo.

 

I just leased a 2022 XC60 Momentum AWD B5 (MSRP: $51,855) - 3 years/30,000 miles:

Monthly payment: $654 (includes local sales tax)
Negotiated price: $49,238
Money factor: .00086 (August)
Residual: 57%
Down payment: $0
Loyalty: $500
Rebate: $550
Doc fee: $250
License/title/reg fee: $75
Acquisition fee: $995
Disposition fee (end-of-lease): $350
Location: Cleveland, Ohio

After paying my first month's payment of $654, I drove away in my new car.

 

I just leased a 2022 XC60 Momentum AWD B5 (MSRP: $51,855) - 3 years/30,000 miles:

Monthly payment: $654 (includes local sales tax)
Negotiated price: $49,238
Money factor: .00086 (August)
Residual: 57%
Down payment: $0
Loyalty: $500
Rebate: $550
Doc fee: $250
License/title/reg fee: $75
Acquisition fee: $995
Disposition fee (end-of-lease): $350
Location: Cleveland, Ohio

After paying my first month's payment of $654, I drove away in my new car.

View attachment 133872

DStevens thx for the outstanding feature post on the 2022 in the other thread & I went thru Vol Fin. Services w/ my 2022 lease, is yours capped @ 30K for 36 mos?

Asking as mine's 36K for 36mos but either way I'm jealous of the capped doc. fees.

 

You're lucky, thats a low doc fee for where I live (Northern VA).

 

Doc fees are capped at $250 in Ohio (I live there too!)

 

This is one of the ways the big dealers sell cars so cheap... sometimes you can push them and still get a great deal, but enough folks just say yes.

However,

The acquisition fee is standard with Volvo, though it should be $995, not $1121. A few years back it was $695 from Volvo with option to add $300, but I had been told that Volvo changed it to a flat $995 and I hadn't seen anything other than that until your quote.

Doc fees are real expenses... but sometimes they get a big crazy. PA did a state audit on the real cost for the dealer for doc fees and came out with $389... so they raised the max doc fee from $141 to $389. Some states are much higher... and it can be a place to add profits.

Some dealers mark up money factors some don't. But certainly it's part of the overall picture to consider. But there typically is a cap on that too, and I don't see anyway to get that money factor in a reasonable way. The markup allowed is typically just under .5% equivalent.

Residual value is set by Volvo, so that one for sure can't be changed or Volvo will reject the contract..... UNLESS the dealer is not using Volvo for the contract....

I've seen some dealers use a third party for leases to maximize their "flexibilities"... aka profits. Enough on this seems off to me that I'd bet that's what is happening here.

 

Also consider Care By Volvo... it's much more direct and frankly the deals are better than most people expect. Most dealers aren't pushing them hard because we really don't make any money with them and inventory is so stinkin tight that we are selling everything at MSRP otherwise. But I would recommend inquiring or getting a quote directly from Volvo (which if you go through Volvo at least pulls from their inventory rather than the dealers... so it's a bit more win win)