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Volvo S40 Lease Questions

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  • Hi mikeut2k3,
    I contacted one dealer via email and asked for his best offer since I have to make a decision by Saturday and am ready to move. He came back with a quote of $329/month + tax with 1K down right off the bat (36mos/12k). I'm going in tonight to see the car and try and grind it down some more :) Unfortunately, I don't qualify for the loyalty cash back, but that could be another 1K off!

    Let me know what else you find.
  • Get the base cap cost of the vehicle. Is it a base s40? Should be able to go below invoice with that $1500 im guessing.
  • qbrozenqbrozen Posts: 17,317
    I understand all of that, and I don't argue.

    HOWEVER, my point is ... let's take a theoretical example. You put $650 down and lost it. If you had financed the car and put ... oh, let's say $2k down, and you purchased GAP insurance, you'd be out $2k right now because the car easily depreciated that much.

    So what I'm saying is, I don't see how putting more money down on a finance is any less risky than putting it down on a lease.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • kyfdxkyfdx Posts: 28,582
    I don't think anyone is arguing that.. (though, I might have missed it.. :) ).

    It's just riskier putting money down on a lease, than not putting money down on a lease..

    On most leases, nullifying that risk is virtually free... Which can't be said of purchases.. (though, that's not what we are discussing here... in the lease questions forum... I think.. ;) ).

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • qbrozenqbrozen Posts: 17,317
    I guess I'm thinking the argument is being implied. ;b

    When folks say things like "on a lease ..." and, really, my point is it applies to both lease and finance. So the lease, with regards to gap and a totalled vehicle, works no differently than a finance. You just need to buy the insurance with the finance while it comes automatically with the lease. And, no, I wouldn't say its "free" with the lease thanks to the fees.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • kyfdxkyfdx Posts: 28,582
    I don't know.... I consider it "free", when it's included, because I'm not going to pay extra for it, if it's an option... (disclaimer: never leased from a bank that didn't include it).

    Not on a purchase, either.... My insurance company guarantees fair value for my car, if it's totaled... That means the amount has to cover getting a comparable vehicle.... So.. even if the car is only worth $X, and I owe $X+$1000, $X will replace my car, so I'm even.... What I owe doesn't really have anything to do with how much my car is worth.

    But, on a lease, I may not be able to replicate the lease terms on another car... So, I can actually lose money without GAP.

    Just my $0.02.. :)

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • kyfdxkyfdx Posts: 28,582
    I'm off topic, again! :(

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • I went in to Volvo last night...not good news. The $299 deal they are advertising is pretty much it. They were genuinely trying to do better for me and they basically came back and apologized that their bank (nor any others they checked) allowed them to do any better. Especially since that deal they are advertising is ALREADY including the $1k loyalty bonus. So, they could match the loyalty bonus for me, but basically bottomed out around there.

    Probably could have horsetraded a bit with them and done less down, but they let me walk out the door when I asked for $285/month + tax and 1K down (they wouldn't even counter, and explained to me the above).
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi shop4cars1. I do have the info that you're looking for. Volvo's lease program for the S40 varies by trim level, term, and mileage allowance. You never mentioned what any of these variables are, so for now I am going to have to make some assumptions. Let me know if you want something different.

    Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 2.4i (not a stripped model) with 10,500 miles per year are .00106 and 48%, respectively. In addition to this special money factor, Volvo recently enhanced its lease cash on this car to $1,553. Make sure to take this cash into account when negotiating its selling price.

    This lease program is scheduled to run through March 31st, though it would not surprise me in the least if Volvo made an unscheduled revision to it at some point over the next couple off days.

    You are smart to want to go with a zero down lease. It is always in lessees' best interest to put as little money down as possible. Like most manufacturers' official advertised payments, I suspect that the S40 payment that you mentioned leaves a little meat on the bone so to speak. If I was in the market for an S40 right now, I personally would shoot for a selling price of a couple hundred dollars over dealer invoice minus the aforementioned cash incentive. You ccan look up the exact invoice price of the car that you want over in the New Vehicle Pricing section of Edmunds.com.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey Mike. Please see my previous post for the information that you're looking for. Good luck in your quest for an S40 andn let me know if you have any other questions.

    Car_man
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  • eliscoelisco Posts: 6
    Hi:

    Can you please tell me if this is a good deal?

    I have an offer to trade in my old Ford Explorer that has engine issues for a new 2009 S40 - promo model. Nothing fancy-no navi, no rims, no extras.

    The offer I've got on the table:
    500 Down in addition to my trade in
    15k miles per year
    300 clean a month - inclusive of tax

    What do you think? They have 3 models of the car that I want, so I'm assuming I have some time.
    The problem I'm running into is that they too are saying the lending department will need a co-signer due to my credit history having only 1 paid off car long of under 10k.

    I would like to process the loan independently... but that's the story they are sticking to, with their lending instutiions. They said they checked with US Bank, their own lending dept and Ford. Ford was the only approval for me.

    Any information that might help would be greatly appreciated!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi elisco. The trade-in issue clouds things a little big. Do you owe money on your Explorer? If so, is the dealer giving you more for it as a trade than you owe?

    The best way to evaluate how good a deal a lease is is to take a look at the selling price that the deal is based upon. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without this number, it is difficult to tell how much of a dealer discount you are being given. You wouldn't finance a new vehicle without knowing its price. Leasing without knowing the selling price is sort of the same thing.

    Find out what this car's MSRP and selling price are and I'm sure that either myself or another knowledgeable community member will be happy to tell you what we think.

    Car_man
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  • Anyone have any data on Lease deals for a S40 R-line? Also, do you think I have any leverage if we are interested in getting two cars? My wife is interested in a used XC90 (such good deals) and I'd obviously like the S40R. Still haven't decided if AWD is worth the extra cash or not, but I definitely want the R.
  • mel10021mel10021 Posts: 30
    Does anyone have the current #'s for a S40 basic ? Looking for 10k miles (or whatever the minimum is ) for 36mos

    I was at a dealer last night and he said only US Bank is doing the financing - that Volvo has poor #'s. US Bank was showing a 37% residual and a .002875 money factor...

    These seem WAY off.

    any adive ?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi mel10021. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a base 2009 S40 with 10,000 miles per year are 00266 and 49%, respectively.

    There is a good chance that you will be able to get a better payment on this car by leasing it through a bank other than Volvo Finance. Volvo is currently providing a special $4,500 cash incentive on leases of this car through independent banks.

    Car_man
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  • mannyljrmannyljr Posts: 20
    I just left San Diego Volvo and they were advertising a lease on a new 2009 S40, MSRP $29375, 60 month lease @ $269 plus tax, $2995 total down, 12,000 miles/year, $0.18 per extra miles. They also have a 5 year warranty with scheduled maintenance including wear items like tires.

    This sounds like a great deal and I have a Cash-For-Clunkers car to handle the money down. What are the numbers they're using? Is a 60 month lease better than purchasing? My credit union's rate is currently at 5.49%
  • Hello. Newbie here. I was wondering if anybody can explain the current lease offer for the S40 please. It says 299 per month, 3300 down for a car that is at MSRP 29,350. Would it be a lower lease rate per month of one is able to negotiate the MSRP down? Or is that absolute, all discounts and credits included?

    Specifically, there is an S40 that's $30,050 and I asked to get this at a lease rate lower than 300 per month, including taxes. The salesman said that they cannot give this car at that special since it's a higher MSRP than the advertised MSRP. I thought that I can negotiate the MSRP to a lower price, and then they calculate the lease rate from there?

    Thanks a lot! Sorry, I guess I'm supposed to go through the other threads, but I'm desperate and will need to get something before next week.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi meyanbarredo. Volvo's advertised lease payment for the 2009 S40 is not based upon full MSRP. It already assumes some sort of dealer discount. If you are able to negotiate a larger discount on the car that you are interested in than the one that is being used to arrive at the advertised payment, which is likely, your monthly payment would be lower...at least before sales tax is added in.

    Be careful with Volvo leases though. Volvo is pretty tricky. They usually have special lease money factors through Volvo Finance on "Base" models that they use to advertise an unrealistically low monthly payment. The addition of any options makes a car ineligible for this special money factor. If you want to lease a car that has additional equipment, you may end up having to do so through an independent bank and use the special cash incentives that Volvo is providing on that sort of transaction.

    Car_man
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  • Hi Car_man! What is a good leasing bank these days? I've searched the internet and I can't seem to find anything so far...

    I've spoken to a Volvo sales specialist and he is looking for an S40 worth $29,375 as he said this was the model advertised.

    Thanks a lot for your help!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi meyanbarredo. The best banks to deal with when leasing are either manufacturers' captive finance companies, or in the event that an automaker does not have their own bank the bank that they choose to run their lease specials through, such as Chase or US Bank. Unfortunately, the banks with the most attractive lease programs on vehicles rarely deal directly with the general public. You will have to go through a dealer to take advantage of their attractive lease promotions.

    Car_man
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  • The Volvo website is advertising $3000 "allowance" for a S40 2.4i. In addition, the current incentives I found online include $4250 Alternative Lease Assistance cash for the 2010 model plus $1250 dealer support ($3750/$3000 for 2009 model).

    I know that sometimes incentives are regional (I live in CT), or cannot be combined with other deals, but I can't find any language that restricts it.

    Is this for a specific model within the S40 family, or a model with restricted equipment? If not, at first glance, it appears we can lease a $30k car for 60 months @12k miles for about $300. Plus have the car under bumper to bumper warranty with free scheduled maintenance.

    Any insight? Thanks!
  • Hi yingxiong. The $3,000 allowance that you have seen referenced on Volvo's website is for 2009 S40 models. The $1,250 is on 2010 S40 models. Naturally they cannot be combined.

    Volvo is providing an additional $4,250 "Alternative Lease Assistance" cash incentive on the '09 S40, but in order to take advantage of this cash you must lease this car through a bank other than Volvo Finance. If you really want to lease, you would be better off passing on the extra cash and going with Volvo's official lease program.

    Car_man
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  • Hi all!

    I am torn between leasing a 2010 S40 T5 AWD R-Design and an Audi A4 Premium Plus Quattro.

    I have a 2007 S40 T5 AWD and loved it. Here are the lease options I have negotiated so far for the car with metallic, cold weather pkg and multimedia pkg:

    MSRP= $34,650
    Cap cost= $27,850
    Months MF Resid Up Front Monthly
    36 0.00237 15246 1572 497.48
    39 0.00237 14553 1561 485.36
    48 0.00237 11781 1547 471.57

    What do you think of these terms?

    I need to order the car soon from the factory as I am very particular with the exact configuration that I want and they are willing to order it that way. My current lease ends 1/1/10 and the Volvo Safe and Sound Package (extended warranty to 5/60k and covered maintenance) ends 12/31/09, so I need to order soon.

    Thanks a bunch! You were helpful in all of my previous car leases/purchases, and I have come to trust your advice.
  • qbrozenqbrozen Posts: 17,317
    Holy cow!
    $1500 down and nearly $500/mo?

    You know you could buy it for that, right?

    Or how about leasing an Infiniti G37 for that kind of money? Or a Genesis. Or a C-class. Or... well, probably alot of other nicer cars. Nothing against the S40, of course, but it just doesn't look so appealing at $500/mo.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • gbrozen,

    Thank you for your opinion, but my question was about leasing a S40, not purchasing any other model or even an S40. Besides, even at an unrealistically low interest rate over a 48-month buy, the montly payment is $150 more a month, which is not what I am willing to absorb. Thus, my decision to lease in the first place.

    If anyone has any insights to the LEASE terms for the S40 outfitted as I indicated, I would appreciate it.

    Thank you.
  • qbrozenqbrozen Posts: 17,317
    You asked, "what do you think of these terms?"

    If you read between the lines, my answer is "they are terrible!"

    Unless you meant to ask how these terms compare to OTHER S40 leases, in which case, you weren't clear AND my post did not answer your question.

    And why you would compare renting a car over 3 years to buying it over 4 is beyond me.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • Obviously I posted on the "Volvo S40 lease" forum to compare against other S40s. If I wanted opinions on other models, or on purchasing, I would have posted on the appropriate website(s).

    If anyone other than someone who doesn't understand leasing who is prowling the forums looking to cause trouble and provide useless feedback has anything useful to add, I would appreciate it.
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