[Seattleman]

There have been some postings here about low monthly lease payments - some as low as $530 per month. I thought I got a good deal when I leased my vehicle on April 17th. But my monthly payment is $890! See attached lease agreement for details. When I asked the sales manager about the high payments, his response was, "due to demand, we did not discount the price, and I do not know what is going on in NJ" (The lease agreement I showed him was from NJ). So I am requesting owners of leased vehicles in WA, ID, and OR states if you would be willing to share your lease agreements (you can redact the information you do not wish to share as I did). You can send them to me via direct message if you do not wish to post them online. I will not share your personal details with the dealership or with anyone else. Thanks.

 

[David]

Mine is $800/month after 4k downpayment and $7500 lease incentive (Tacoma, WA). I think MSRP was 64k before the lease incentive. I'm at work, so I don't have the actual agreement at the moment.

 

[arijaycomet]

Keep in mind:
1- the interest rate (money factor) on a lease changes from month to month
2- different states have diff incentives that will impact the monthly payment
3- discounts will also vary, off MSRP, that could impact payment
4- how much money someone puts down will also impact (around $15/mo for every $500 down)
All of these items impact cost of the car. And right now the lease rates will also shift as 2022 models are coming soon, that might cause backdoor incentives for the 2021, some that may be transparent to us buyers. It seems $700-900 is typical payments here. If you're seeing lower prices advertised, read the fine print. That is prob $5k down (or more), does not include sales tax, and if its NJ, that includes extra state incentives that most other states (other than CA) do not offer.

 

[He Keith]

If I read your agreement rights they did not even pass back the $7500 tax credit. Back in April I am not sure Volvo was passing it back for leases. I would not buy at the end of the lease as your total costs are like $70K at that point. The incentives improved in May and got really good in June and July where you could wind up for $4K off then $7500 tax credit.

 

[Seattleman]

Keep in mind:
1- the interest rate (money factor) on a lease changes from month to month
2- different states have diff incentives that will impact the monthly payment
3- discounts will also vary, off MSRP, that could impact payment
4- how much money someone puts down will also impact (around $15/mo for every $500 down)
All of these items impact cost of the car. And right now the lease rates will also shift as 2022 models are coming soon, that might cause backdoor incentives for the 2021, some that may be transparent to us buyers. It seems $700-900 is typical payments here. If you're seeing lower prices advertised, read the fine print. That is prob $5k down (or more), does not include sales tax, and if its NJ, that includes extra state incentives that most other states (other than CA) do not offer.

Are you an owner or a dealer? If you are an owner in the Pacific Northwest, please send me a copy of your lease. As you can see in my lease - I paid a $6000 downpayment.

 

[Seattleman]

If I read your agreement rights they did not even pass back the $7500 tax credit. Back in April I am not sure Volvo was passing it back for leases. I would not buy at the end of the lease as your total costs are like $70K at that point. The incentives improved in May and got really good in June and July where you could wind up for $4K off then $7500 tax credit.

Yes, I agree. They did not offer me the full tax credit.

 

[Homer]

This is a standard agreement. All the numbers seem ok..

I do have some notations;
The title/doc/ and registration are crazy high. But, I'm not familiar with your state fees.
The car is noted to depreciate to about 52% residual at three years. A Volvo XC40 maintains 66% residual on resale. This may be due to concerns about the electric vehicle value.
They did not give you the electric car credit. I did enquire on this car and was told Volvo was giving a $3750 EV credit on leases. This was in effect in April. It was later changed to $7500 in May.

The $7500 is paid by the government to the first owner, in this case the bank, Volvo.

I would do a web search and find an archived post on Volvo that shows the EV credit being offered by Volvo in April. I know it out there.

However, the lease is signed and I suspect your lease is locked in.

If the EV 1/2 credit is in the web archives, I would gently let Volvo know that you would like some good will

 

[BainbridgeIsland]

They did not give you the electric car credit.

I purchased my XC40 - not leased - but also here in Seattle area (Sandberg Volvo in Lynwood). The dealer screwed up my Title on the state form - saying my car was "Gasoline powered". It took a couple months for them to correct the error, resubmit to state, and finally receive my corrected Title. Hopefully now I can claim the EV credit on my taxes next year.

Not sure if this has anything to do with you getting EV credit on your lease - but some clerk somewhere obviously just typed "XC40" into the Title form without checking further.

 

[Jezza]

The tax between all the jurisdictions where I live amounted to 38% of my monthly lease payment. On my T5 that meant I was also paying $860/month on my 2-year lease (aka CBV Subscription). As others have pointed out, the many fees that can be attached are also very site-specific. Comparing leases is apples to oranges unless you're buying the same day at the same dealership and you live in the same zip code. If it seemed like a good deal to you at the time, it was, and that's what matters. Just enjoy the car.