[westmo]

When I investigated the Volvo lease, they informed me they do not give back the $7500 tax credit. They do give an additional $2500 discount which is built into the lease. The two and three year residual is set over 50%. The final monthly cost is based on trade in valuation and down payment.

The problem with all leases is there is no value or equity in the car at the end or the lease. If you are car hopping every 2-3 years, it is a gamble that the real life residual valuation will be less than the calculated lease valuation. I had a BMW i3 which depreciated much quicker than the calculated residual.

If you keep the car, owner loyalty in a new purchase and trade in equity make the ownership a better choice over leasing. And, the $7500 tax credit is 100% applicable to the year the car is purchased.

Where did you find out about Volvo giving an additional $2,500 discount that is build into the lease?
My dealer just gave a curt answer: "We are not the manufacturer so we get no participation in the $7500"

Also ... I guess an owner loyalty discount on a new purchase would only be applicable if you purchased your next vehicle from the same manufacturer. I'm betting that in the next 3-5 years there are going to be tremendous changes/improvements in technology, prices and # of EV choices on the market.

Lastly, for those of us who have never owned a Volvo previously ... but who put down a deposit on the XC40 Recharge 16+ months ago ... it would be nice (and reasonable IMO) if Volvo would extend the $1K Loyalty offer to us.

 

[dtaylor89]

I plan to wait to see what April offers are given that the cars haven’t left port yet. Maybe there will be a positive change.

 

[Waiting in SD]

Where did you find out about Volvo giving an additional $2,500 discount that is build into the lease?
My dealer just gave a curt answer: "We are not the manufacturer so we get no participation in the $7500"

Also ... I guess an owner loyalty discount on a new purchase would only be applicable if you purchased your next vehicle from the same manufacturer. I'm betting that in the next 3-5 years there are going to be tremendous changes/improvements in technology, prices and # of EV choices on the market.

Lastly, for those of us who have never owned a Volvo previously ... but who put down a deposit on the XC40 Recharge 16+ months ago ... it would be nice (and reasonable IMO) if Volvo would extend the $1K Loyalty offer to us.

View attachment 568

Each state/county has so many different deals - dig deep. I’ve looked through the recall documents, tax credits for my state and county and anything local I can find. The lease with California dealers seems to be only at $2500 contribution of the “Tax Credit” rather than the full $7500 you’d get if you’d apply to personal taxes. If you dig deep into all leases, they do everything they can to take all the credits unless they can’t move the cars. Good luck holding out. Volvo has no reason to offer any incentive - look outside of Volvo for the best opotions.

 

[PrincetonBirder]

Where did you find out about Volvo giving an additional $2,500 discount that is build into the lease?
My dealer just gave a curt answer: "We are not the manufacturer so we get no participation in the $7500"

Also ... I guess an owner loyalty discount on a new purchase would only be applicable if you purchased your next vehicle from the same manufacturer. I'm betting that in the next 3-5 years there are going to be tremendous changes/improvements in technology, prices and # of EV choices on the market.

Lastly, for those of us who have never owned a Volvo previously ... but who put down a deposit on the XC40 Recharge 16+ months ago ... it would be nice (and reasonable IMO) if Volvo would extend the $1K Loyalty offer to us.

View attachment 568

I got $500 loyalty on the Lease (obviously no car yet), the $1000 is for purchasing the vehicle is what I was told.

 

[PrincetonBirder]

There was discussion earlier in this thread about leasing. I’ve never leased a vehicle before (we usually buy a two year old used car and hang onto it for 10+ years). But in this case w/ the XC40 Recharge, I think the argument for leasing is solid. If the purchase price is around $59,000 MSRP, what would the leasing terms be? And how would it work with the $7,500 U.S. tax credit ... would any of that credit apply toward a lease, or is that only for EV purchases?

For reference/comparison, here’s a lease offer that I saw today.

That is for the T5. The P8 is WAAAYYY more money. Not sure if the rules on this forum allow us to say what we negotiated (figuring I'll get a different story when I get to the Finance guys office), but there is a 51% residual, but a very good money factor of 0.00055 (which is an APR of around 1.32%). Which puts you around $900/month on a 36 month 10k/year lease.
--Edit-- Words

 

[MMK]

That's good if you plan on turning in at the end. I am considering a lease to make sure I like the car then buy out the lease at the end. With EV that may not work well as I give up a lot of the tax credit.

When I investigated the Volvo lease, they informed me they do not give back the $7500 tax credit. They do give an additional $2500 discount which is built into the lease. The two and three year residual is set over 50%. The final monthly cost is based on trade in valuation and down payment.

The problem with all leases is there is no value or equity in the car at the end or the lease. If you are car hopping every 2-3 years, it is a gamble that the real life residual valuation will be less than the calculated lease valuation. I had a BMW i3 which depreciated much quicker than the calculated residual.

If you keep the car, owner loyalty in a new purchase and trade in equity make the ownership a better choice over leasing. And, the $7500 tax credit is 100% applicable to the year the car is purchased.

To further clarify, the tax credit in only applicable if BOTH of these conditions are met (i) Vehicle is purchased, not leased at time of first transaction (ii) $7500 credited through Federal tax incentive ONLY IF the filer has a tax liability. For example: At time of filing taxes, if you OWE the Govt say $10k, then the full $7500 will deducted to now owning $2500. If you OWE the Govt say $3k, then only up to $3k is deducted no now NOT owning anything to the Govt. Likewise, if you're currently getting a REFUND from the Govt, the $7500 doesn't benefit the filer. There's a misconception that the $7500 is automatically GIVEN by the Govt and buyers are using MSRP$ price of car minus $7500 credit to determine actual cost of Car which is NOT the case. Please be careful to research accordingly vs. a blanket statement of "$7500 credit"

 

[MMK]

We received a message from Volvo today that our XC40 Recharge will be released from Baltimore in the next week or so and delivered to the dealer the last week of March / 1st week of April.

I was told the same arrival date range as well by the Dealer in Dallas, TX where I had reserved the car with.

 

[Coffeenerdguy]

First trip with one stop at a 50 kW charger. Stats for nerds.

 

[MMK]

First trip with one stop at a 50 kW charger. Stats for nerds.

Great to know ! So about 60 mph at a 50 kW charger - thanks!

 

[Rat]

My dealer just emailed me that mine will be there Tuesday or Wednesday of next week.

 

[Coffeenerdguy]

Great to know ! So about 60 mph at a 50 kW charger - thanks!

The car claimed it was nearly 100 mph at 50 kW

 

[dtaylor89]

Great Youtube explaining the EV tipping point and that charging is the final leg

 

[MMK]

My dealer just emailed me that mine will be there Tuesday or Wednesday of next week.

That's great news - which City/State are you located at ?

 

[Rat]

That's great news - which City/State are you located at ?

Bay Area. The dealer is in San Jose, CA

 

[He Keith]

To further clarify, the tax credit in only applicable if BOTH of these conditions are met (i) Vehicle is purchased, not leased at time of first transaction (ii) $7500 credited through Federal tax incentive ONLY IF the filer has a tax liability. For example: At time of filing taxes, if you OWE the Govt say $10k, then the full $7500 will deducted to now owning $2500. If you OWE the Govt say $3k, then only up to $3k is deducted no now NOT owning anything to the Govt. Likewise, if you're currently getting a REFUND from the Govt, the $7500 doesn't benefit the filer. There's a misconception that the $7500 is automatically GIVEN by the Govt and buyers are using MSRP$ price of car minus $7500 credit to determine actual cost of Car which is NOT the case. Please be careful to research accordingly vs. a blanket statement of "$7500 credit"

Good points. The leasing company gets the tax credit and has the option to pass all, some or none of that back I t he leasing prices. I am not sure about your federal credit and refund example. If I paid $20K in federal taxes and filed for the tax credit I should that off my tax bill and if I were getting a refund because I have too much withheld I should get that much more back in my refund.

 

[Homer]

Good points. The leasing company gets the tax credit and has the option to pass all, some or none of that back I t he leasing prices. I am not sure about your federal credit and refund example. If I paid $20K in federal taxes and filed for the tax credit I should that off my tax bill and if I were getting a refund because I have too much withheld I should get that much more back in my refund.

It is confusing, but as stated, the $7500 in a lease goes to the company. They have the option of deducting that from the purchase price...or giving a cash bonus for setting up the lease. In the case of Volvo, they give $2500 off the purchase price of a lease.

The Fed tax is a direct deduction from the owed taxes. So, it is money directly back to the buyer. If you pay at least $7500 in taxes, you get the full credit. If you have money withheld, that is applied to your taxes due. If you have no taxes due because your with hold was enough, then you will get the$7500 as a refund from the govt.

If you pay no taxes because either income is too small or deductions already have minimized your tax exposure, then the tax credit is meaningless.

 

[I_Kent_Spelgud]

Homer has it right. The EV credit is only related to what you OWE, not what you’ve PAID.

You buy the car in 2021, file in 2022.
If your Fed tax OWED is $5000, you get a $5000 credit; the other $2500 disappears forever. Not rolled forward or back. You owe $0 for 2021 to the IRS.
If your tax OWED is $7600, you take the $7500 off, and you need to pay $100 in 2021 Fed tax.
If your tax OWED is $15000, you take $7500 off, and you need to pay $7500.

Once you have that amount OWED calculated, you move down to the ‘amount of refund or amount to pay’ section of your tax form.
How much you withheld or prepaid or underpaid is then calculated and you either get a refund or have to pay the remainder.
Let’s say in all 3 cases above you had $6000 withheld and no other payments.
Case #1: you get $6000 refund. (Only $5000 is due to the EV credit! The rest you simply overpaid.)
Case #2: you get $5900 refund.
Case #3: you need to pay the Feds another $1500.

I speak from experience; this will be my 2nd new EV, first was in 2016, (the one I drive now I bought used, so got no credit) and I expect another full credit next year for the XC40 P8 due to my tax situation.

I’ve read that the IRS has got really pissy about record keeping, so be sure you keep an original sales invoice showing your name, very low mileage (on the car, not you 😄), and VIN to prove you are the real and first owner if you claim the credit, as you might get challenged on it.

 

[westmo]

Dealer just texted me a letter to the dealership from VCUSA about an issue affecting XC40 Recharge vehicles equipped w/ heat pump - there's some issue that causes the AC system to not operate correctly. A software fix is expected "within a few weeks" and the letter says they'll refrain from delivering any XC40 Recharge vehicles w/ heat pump until the software update is completed.

 

[dtaylor89]

Dealer just texted me a letter to the dealership from VCUSA about an issue affecting XC40 Recharge vehicles equipped w/ heat pump - there's some issue that causes the AC system to not operate correctly. A software fix is expected "within a few weeks" and the letter says they'll refrain from delivering any XC40 Recharge vehicles w/ heat pump until the software update is completed.

Sounds like I need to have a friendly chat with my dealer about providing updates. Of course I ordered with Heat Pump given colder weather here in New Jersey.

Any chance you can post the note? If possible add it to the delay thread already started.

 

[3569]

Sounds like I need to have a friendly chat with my dealer about providing updates. Of course I ordered with Heat Pump given colder weather here in New Jersey.

Any chance you can post the note? If possible add it to the delay thread already started.

I don't know much, well actually less than that because of how Volvo communicates, but if this checks out -- so do I. I'll go buy a Mustang Mach E or something.