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Volvo XC60 Lease Questions

kyfdxkyfdx Posts: 28,434
Ask your XC60 lease questions here!

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  • mkny83mkny83 Posts: 1
    I was wondering if anyone knows the current lease money factors and residual values for the XC60. Preferably 36 month 12K, but will be willing to play around with the term for best price.
  • pbgpbg Posts: 4
    I have one dealer offering residual of about $19.5K, money factor 0.0024. i don't know if that's good or bad.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi mkny83. Here's the information that you're looking for. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a base 2009 XC60 with 12,000 miles per year are .00127 and 54%, respectively. If the unit that you are interested in has any additional options, the money factor jumps to .00237. The different money factors on base vehicles is a shady trick that Volvo uses to enable it to advertise a much lower monthly payment on its cars than most people will ever see in real life.

    If you choose to lease your XC60 through a bank other than Vvolvo Finance, it is eligible for a $5,000 cash incentive.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi mkny83. Here's the information that you're looking for. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a base 2009 XC60 with 12,000 miles per year are .00127 and 54%, respectively. If the unit that you are interested in has any additional options, the money factor jumps to .00237. The different money factors on base vehicles is a shady trick that Volvo uses to enable it to advertise a much lower monthly payment on its cars than most people will ever see in real life.

    If you choose to lease your XC60 through a bank other than Volvo Finance, it is eligible for a $5,000 cash incentive.

    Car_man
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  • Car_Man,

    What's the story behind the $5k deal, is this a Volvo incentive and is it on most any Volvo?

    Chip
  • One minor point - I think the Base Model lease terms you quoted are for 10,500 miles/year, not 12000 - that boosts the residual value to 54% and another way to help Volvo can get to the low advertised monthly payment.

    I am awaiting an XC60, and probably I will lease it when it arrives. I'm hoping the terms will actually improve somewhat by mid-May, but the current quote I have for a non-base model involves the $5k Volvo incentive, money factor of 0.0025 (6%), and residual calculated at 47% for a 36 month, 12000 miles/yr lease. Note this residual rate is somewhere between the 52% that the XC90 and its competitors rate, and the 41% that all other Volvos (and most relevant competitors) rate (based on LeaseGuide.com data).

    There seem to be many fewer lenders participating in auto lease financing these days, the economy and car market are in turmoil, and the XC60 is so new that no "accepted" residual rate has been established. So I guess that one cannot really argue with these terms, and of course they play around with all these things to shape the deal a certain way. However, it is disappointing because the XC60's direct competitors rate at 52%. If they had used the 52% number and everything else stayed the same, it would reduce the lease payment by about $50-$65 per month depending on how loaded the car is.

    If you were really confident that you could sell or trade in a 3-year old XC60 for 52% of the MSRP, and you have the cash to put up, then it looks like you could buy it outright and the depreciation cost would come out less than the financed lease payments, even with the $5k lease incentive. The lease basically protects you from uncertainty in that case.
  • rosedalerosedale Posts: 4
    Does anyone know if the MSRP on a xc60 lease can be reduced by 1) the AXZ Ford employee/friend discount AND 2) the $5k Volvo discount?

    Some dealers around NYC are quoting $489 month on $39,550 MSRP with 48% residual, 12K miles for 36 month lease with $2500 down. They arrive at the price by applying the $5K discount to the MSRP I'm told.

    As a native Detroiter, I'm used to dealers welcoming A Plan purchasers knowing their comish is paid by Ford. Around here in NYC, dealers don't even know what A Plan and are rather hostile to me telling them.
  • rosedale wrote:
    > ...Around here in NYC, dealers don't even know what A Plan and are
    > rather hostile to me telling them.

    I never understand when I go shopping in NYC, why hostility seems to be the default sales approach. Is it really successful? Does this apply at car dealers as well?

    "If I let you see dis vehicle, you gonna buy it or what?" Oh yes I'll take two sir!
  • bmhavenbmhaven Posts: 6
    Hi Rosedale,

    I went to the Volvo dealership in Cary, NC to inquire about the Volvo XC60 and Ford X Plan pricing. You can indeed take advantage of the $5K incentive by using an outside lender on top of X Plan pricing. Rumor in Detroit right now is that GM is going to role out some hefty incentives for April so it will be interesting to see if Ford follows suit. On the XC60 you almost have to get AZ plan pricing in order to make the overpriced XC60 affordable.

    I am going to revisit in a couple months once dealer inventories ramp up to see if I can squeeze an additional $1K off the price.
  • steelerjsteelerj Posts: 1
    I am looking into a lease in South Florida. So I have a few questions:
    1) Is the $5K cash incentive regional or nationwide?
    2) Then how does the $5K cash incentive work?
    3)I am looking at a 48 mth lease (33% residual) to keep the payments down but with the residual value would I be better off with a 36 mth lease?
    4) How can I calculate the payments if I don't know the actual residual values?
  • rosedalerosedale Posts: 4
    1. I think the $5k is nationwide and I think it has been extended to April 30.
    2. At least in the NY area, there are no true base models. All models include the moonroof (which is supposed to free), the climate package ($1000) and most include metalic paint ($550 or so). That means the cheapest model on the lot is probably $39,500 after the delivery fee is included. The cap cost (ie the price from which the lease is calculated) is then reduced to $34,500. So they give you a $5k discount on a car that includes about $1500 to $2000 in options.
    3. Can't answer that.
    4. Leaseguide.com
    Best of luck.
  • baygirl1baygirl1 Posts: 2
    Perfect timing on this info. My dealer just sent me my lease info today and made no mention of an incentive. So I've checked all over the internet and cannot find anything on the $5000 incentive except on this site. Where is this coming from? Incidentally, my dealer quoted me payment amount for both 36 and 48 months, along with the selling price, however, he made no mention of the residual or the factor. The car we have on order included the moonroof at no charge, however we did get charged for the metallic paint and the climate package (we're in California). Thanks so much!
  • dpeck1dpeck1 Posts: 51
    Carman:

    Do you think this $5,000 wil be around in May? A rep at the NY autoshow also told me that in addition to the 5K, they offer an ADDITIONAL $1,000 conquest cash for owners of Audi, BMW, Mercedes.

    I am trying to lease a XC60 with an MSRP of 44,000, cold weather, nav, etc. 15,000 miles a year 36 months.

    What type of discount can I expect off teh MSRP, before the incentives?

    What should the monthy payment be, assuming I can get the car for 42500 minus the $6,000, so a selling price of 36500? Thanks!!!!
  • serdarflserdarfl Posts: 13
    1- $5,000 dealer cash is available only when you go thru any lender but Volvo Car Finance on a lease. In South Florida, US Bank is the only other bank that do leases for Volvo.
    2- Conquest money is $1,000 if a person in the same household owns a Mercedes, BMW, Audi, Acura or Lexus. For instance, your wife is driving a Mercedes, then yes you do get the conquest money.
    3- Panoromic sunroof is free of charge until further notice. Most if not all the cars in South Florida have panaromic roof.
    4- Dpeck1, more than likely they will keep the $5,000. Without any additional money on the car lease would have been thru the roof.
    5- Keep in mind that usually when a new car launches the residuals are set high. Volvo will introduce the 3.2 FWD version of the car though there is no specific date yet.
  • baygirl1baygirl1 Posts: 2
    1. I'm in California, and US Bank is it for us, too. My dealer said it is supposed to end in May, but who knows.

    2. I was told last week that the dealerships should find out on 4//15when Volvo updates their incentives if it includes a loyal customer incentive of $1000 since so many people have been upset that there wasn't one.

    3. Also, we could only get them to drop the MSRP by $1000 off our fully loaded model and they only did that after we said we were going to look at Lexus again. So we'll get $6000 off the MSRP.

    4. We also found out that US Bank has a maximum they are willing to residual of $43,400, so while that actually lowers the residual value of the car, it doesn't affect the actual incentive amount they take off the MSRP. So, in the end if we decide to buy it, then we'd get it for a lower amount than if the full MSRP had been residualized.

    5. My car just came in on the truck this afternoon. Picking it up Saturday! It's a real beauty! I bought a black sapphire body with black on black interior (which looks dark gray) with the stainless interior. Looks a LOT sharper than the blond wood and mixed color seats.
  • serdarflserdarfl Posts: 13
    1- Volvo do not let dealers about the upcoming leasing programs in advance as their main goal to sell as many cars as possible to dealerships. If the dealers knew the program in advance they could always tell their customers to hold off if upcoming lease program favors the dealerships.
    2- Volvo tweaked the XC90 lease program by releasing additional money($500). Everything stays the same on the XC60.
    3- You got a fair price regardless of the economy. This is Volvo dealerships one and only chance to make some profitable deals if they can until the '11 S60.
    4- You are right on the car being only residualized up to 43,200. So if the car is 45,000 the 2,000 dollar portion does not residualize and it pretty much becomes 2,000/39= around $50 increase on a 39 month lease. Pretty stupid. But it is not Volvo who sets the residuals.
    5-I agree on the aluminium inlay being better looking than the wood. Have fun with the car!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey Chip. Most Volvos have a special cash incentive for leases through independent banks (any bank other than Volvo Finance) available on them, but the exact amount varies from model to model.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dpeck1. What you were told about the conquest cash is correct, but you can add Acura and Lexus to the list of eligible competitive brands.

    Volvo's current lease program for the XC60 is only scheduled to run through the end of the month. If I had to make an educated guess though, I'd say that it will probably be around in some similar form through the end of the quarter.

    Car_man
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  • I was hoping to give others some information and maybe get feedback on this deal. I don't have the paperwork right in front of me, but here's the big stuff:

    Black (non metallic) with BLIS and PCC as only options MSRP about 39000
    48 months, 15,000 miles per year
    $539/month, only first month paid at signing
    Residual value around 14100

    It was through US Bank taking advantage of the $5000 incentive and X-Plan discount through my employer.

    Any thoughts?
  • mandesonmandeson Posts: 20
    Car_man:

    I'm looking to lease an XC60 and was able to confirm the available lease cash of $5000 and conquest offer of $1000. I'm told with US Bank tier 1 approval the money factor is .00222 and residual is 47% with 12,000 miles per year. Is this the same information you have? What are the rates and residuals for April through Volvo Financial?
  • chipkchipk Posts: 7
    Gotcha, thx!
  • serdarflserdarfl Posts: 13
    US Bank base rate up to 39 months is 0.00224 and between 39 to 48 months is 0.00214. Dealers can mark up this rates but cannot lower them.
  • Does anyone know whether #2- the Conquest cash is available if I take European Delivery for the XC60?

    Drove this car and it's great...will trade bmw for it. and that's sayin a lot.

    Thanks :)
  • ucjjgucjjg Posts: 19
    Thought I'd share with you the facts & figures of our new XC60 Z plan lease:

    Options: Black sapphire paint, convenience, climate, BLIS, PCC, booster seats, panoramic roof, Dual DVDs, front bumper bar, rear skid plate.

    MSRP: $46,140 (incl. $825 destination)
    MRM (maximum residualized value): $43,000
    Selling price: $42,152 (invoice price) - $5000 (incentive) = $37,152

    Residual = 47%
    MF = .00023
    Term = 39 months / 15,000 miles
    Michigan tax = 6%
    Payment = $614.92

    Drive off cost: ~$700 (1st payment, registration, etc.)

    Bonus: The dealer presented us with a check for $505 to cover the final lease payment on my wife's existing GM vehicle. They wanted to make a sale and this was a pretty cool angle.

    Excited to pick the car up next week.
  • Does anybody know if interior color of Black/Lemon Green come with any other exterior color than Green ? I like the Savile Gray with the two tone of Black/Lemon.

    Also, I was told that for MAY, the incentive program of $ 5,000 stays. I was not told about the extra $ 1k off if you cuurently drive a Lexus, Acura, Mercd., ect. But I would that offer too.

    Even with $ 6000 off the price at invoice with the car loaded, you are talking around $ 600 a month with tax. Nothing down across ! except for inception.

    This seems to me around the same monthly lease for a RX,and GLK. Even, the ML 350 is close with its own incentive.
  • teamvteamv Posts: 6
    Does anyone know if this incentive is still good for May? And how is it applied? To the sales price, MSRP, or total - sales price + taxes + fees?

    Thanks.
  • bmhavenbmhaven Posts: 6
    ucjjg,

    What outside lender was used to get the .00023 MF? From what I understand the MF through US Bank is .00224. Nice deal with all the options you got.
  • ucjjgucjjg Posts: 19
    It is a small institution called Lake Michigan Credit Union. My sense is that there was some markup on the money factor given that we have A+ credit and the .0023 rate is less than stellar. With so few comparative data points I figured it was within the "range" and not worth pressing. One way to look at it is that given the $505 check the dealer cut to us...there was clearly some profit margin left in the deal. One source could definitely be a markup of the money factor. I will say that the dealership experience was outstanding and reduced my interest in nickel & diming much further.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello mandeson. I have seen Volvo Finance's current lease program for the XC60, but not US Bank's. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a non-base 2010 XC60 with 12,000 miles per year are .00243 and 54%, respectively.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    No problem chipk.

    Car_man
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