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How did you finance you new Recharge?

  • Lease maybe buy it at end of lease or sooner

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  • Paid cash and depreciation will not matter

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Discussion Starter · #1 ·
Curious how many people are buying vs. leasing the P8?

My lease offer was:

$7500 Volvo cash
$500 PenFed affiliate
$3000 dealer discount

For purchase it was:

$3000 dealer discount
$1000 PenFed affiliate

I want to buy something and keep it a long time, but with the P8 being new I wonder home many quirks will get fixed eventually vs. being dealt with in a future model year. Also the depreciation is so unknown on these. You look at used Teslas Model S going for so cheap it makes me think if I buy I have no choice but to keep it long haul as it will depreciate like the Titanic.

What have you P8 owners been doing? Thoughts?
 

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We went through the same thought process. Sure things might get better in 2 years, but that’s $900/mo for 2 years on renting a car. All my previous cars I’ve kept for 5+ years, and I suspect it’ll be the same here. 0.99% financing is essentially a free loan, and just because there’s a better car out there doesn’t mean the car you have isn’t any good. The big question was the battery but with a 8 year warranty on that I felt okay financing.
 

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We decided to buy, but only because we looked at our finances and buy + treating it like a lease that we will get rid of after ~4 yrs was a significant savings vs leasing for that same amount of time. Gives us the freedom of not worrying about going over on kms and based on the research my wife did we aren’t concerned about depreciation when we go to sell.
 

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2021 White XC40 Recharge P8
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Curious how many people are buying vs. leasing the P8?
. . .
What have you P8 owners been doing? Thoughts?
I decided against leasing because the money factor was too high. And, annual registration of a leased vehicle is a hassle.

I thought .99% financing was nearly free money, and the dealer offered a good price on my trade-in. (I think it was because it had a full tank of gas 😏

Still wondering how you were fortunate to get a dealer discount. My dealer was giving $3000 discounts on the XC 40 - the ICE version.
 

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Discussion Starter · #5 ·
I decided against leasing because the money factor was too high. And, annual registration of a leased vehicle is a hassle.

I thought .99% financing was nearly free money, and the dealer offered a good price on my trade-in. (I think it was because it had a full tank of gas 😏

Still wondering how you were fortunate to get a dealer discount. My dealer was giving $3000 discounts on the XC 40 - the ICE version.
I think the incentives were good here because EVs are not overly popular here in GA and the are probably 30-40 in stock in the metro area. I played dealers off each other and have multiple dealers offering same deal now. Even on the wife’s ICE XC40 they took $3,100 off that car as well as gave her $600 more than Carmax did on her trade, which with 2 months left in her lease was more than $2500 over the lease buyout, which was like getting $5500 off the XC40.
 

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$675/month, 3-year lease, 10,000 miles/yr., $2,300 down, MSRP of $60,100. Given those stats I went ahead and did a lease. The way I view it is the depreciation over my “bought cash price” is 47% over 3 years which is OK considering this is a first year EV. I excluded sales tax.
 

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> $675/month, 3-year lease, 10,000 miles/yr., $2,300 down, MSRP of $60,100.
You either got a better money factor (currently 0.00193) or more off MSRP (currently 8,000) or better residual (I got 52%) … or all of the above. Either way, congrats! That’s a heckuva deal.

Ah, excludes tax. So 675 isn’t the total monthly payment.

My monthly tax is $69.
 

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$675 is full monthly payment. The depreciation math was pre tax. Residual was 52% I think (which overlays with my math). I got a little more that an $8k off.
 

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Discussion Starter · #11 ·
I just go a sweet offer on a demo P8 with 500 miles on it. $12K in discounts and $766/month for 7500 miles. I wanted Red, but this is silver but has only the options I wanted, not all the extra crap I don't.
 

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Can't help but feel like I scored a decent deal on this car. MSRP right around $60k, ended up at $591/mo lease with $7,500 down ($7k trade allowance plus my $500 deposit). 36 month, 12k miles/year. Taxes, etc rolled into the lease cost.

Selling price that went into the lease was about 19% off MSRP (don't have the exact numbers but as far as I can discern they wrapped the $7500 EV credit, $1k affinity discount and dealer discount all into the selling price - I liked the numbers so I didn't ask for a more detailed breakout lest they change their mind on the bottom line). Dealer was super easy to work with; I inquired about the car on a Saturday morning and had a deal figured out over email plus a couple phone calls by mid-afternoon without any pressure or typical sales junk. Picked the car up the following weekend (the one I liked was at an out of state dealer so there was a bit of a drive involved). Got the Chargepoint Flex on order for free and picked up a roof rack plus a pair of kayak cradles on Volvo's dime which will be shipped to me (see the Recharge Owners thread for info on the Volvo corporate goodwill gesture on the P8).

All in all couldn't have asked for a better experience and am loving the car despite its "early adopter" quirks.
 

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Discussion Starter · #14 ·
One suggestion I always give people. Do not put money down, especially on a lease. Almost all leases come with GAP insurance and if you total the car in 6 months then you have to deal with getting a fair settlement. With GAP, if car get wrecked and you have no equity in it whatever the insurance doesn't cover to make the leaseholder whole the GAP insurance will cover. Nothing for you to argue about. If you need to lower a payment, put the big deposit in a bank account and then send you desired payment each month and siphon off the difference from the separate account. I have not put month down on a car in over 15 years and I have bought and leased almost 20 cars.
 

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I agree with He Keith that putting money down on a lease is usually not a good idea unless you really must keep your payments low, for example if your jurisdiction charges you a lease tax based on the monthly payment vs. the total gross lease value. You aren’t saving interest with money down like you are with a loan. Your money down serves as a nonrefundable prepayment. If the vehicle is totaled or if for some reason you must assign the lease, you won’t get that money back. He Keith is also right in principle that Volvo Financial leases include a GAP waiver so you don’t have to worry about any value gap if your leased car is totaled. It’s not really gap insurance but it has the same practical result.
 

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Discussion Starter · #16 ·
Those buying, any concern about the battery life in 5 or 6 years? Are you setting the charge limit to the recommended 90%?
 

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8 year warranty - so not concerned - yes setting to 90% - will have to see in 6 years how it is - those who have had Tesla's felt there was very little degradation in 5 or years.
 
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