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Volvo S40 Lease Questions



  • paulsazpaulsaz Posts: 19
    Carman thanks for the previous info, now that it is April--do you have the April numbers on the base S40 2.4i? I still have my X-plan pin number and currently have a S40 lease about to expire. Is Volvo offering any loyalty cash? I would like to try to get the same type of deal I had three years ago: No down payment and $257 per month for 36 months/ 10,000 miles per year.
  • quick5quick5 Posts: 3
    Wats up carman I am 21 years old this summer and I just got a new job where I make 28,000 annually. I have been fascinated with the volvo s40 since i first saw it in 2005. I am undecided I want to buy it but part or me thinks it would make more sense to lease. the msrp for one i selected is 29,825 and the invoice is 27702. is it even practical to want to get this as my first car? I've been told i have expensive taste but i think leasing it wouldn't be that bad 3 years isn't bad. Please help also I don't kno that much about leasing just that i may or may not have to pay a fee at the end or how much i wud haveto pay to buy the car afterwards. any insight is greatly appreciated.. I live in Queens NY
  • gforce11gforce11 Posts: 225
    Hey Quick5, i don't think you need to ask Carman about that. Haahaa. I would say based on the income you make, even leasing that car will become a financial burden for you down the road. Leasing isn't as clean cut as buying in my opinion. It's got a lot provisions/limitations etc...Make sure you learn everything you can about leasing before you even consider it (such as how to calculate the lease, fees, restrictions, liabilities, turn in fees, etc...) The first car I ever got for myself was a I paid through the nose to maintain that "expensive taste" of mine.
  • qbrozenqbrozen Posts: 17,148
    You could find yourself a nice CPO one for less than a new Honda.

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

  • quick5quick5 Posts: 3
    CPO? lol immmm veryy neww to this
  • quick5quick5 Posts: 3
    so would u recommend me just finance it n buy it or is the point ur getting at to just settle for cheaper ? lol
  • qbrozenqbrozen Posts: 17,148
    CPO = certified pre-owned

    CPO carries a warranty that lasts for longer than the factory warranty, in many cases, and you've avoided the steepest deprecation on the vehicle (the first 2-3 years). Its really a great way to go.

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

  • nofeernofeer Posts: 380
    has anyone traded in a near end of lease s40 t5 awd, my last payment is 6/1 i want to get my wife a new vw jetta se. the lease company gave me 3 options buy it, bring it back during june or have the dealer get a "trade quote" it has 28kmiles it's red.
    so any suggestions or do i just have to wait. it doesn't have to be a t5 perhaps any end of lease trade in option
  • aeropostelaeropostel Posts: 10
    Hey car-man

    any idea where i should be at on a 48 month 12k/year lease on an s40 2.4i automatic, leather package

    im looking to be at about 250 or so a month with no more than 2000 total out of pocket
    is that feasible?

  • If you do this ( it is usually called an lease aquisition fee) then I have bridge to sell you in Brooklyn!

    The whole point of a lease is to keep money in your pocket and how can you do this if you are donating money to the car dealers FU money fund? :mad:

    Remember you are NOT buying the car so why put money down on something you don't own? You put money down on a House and a "Purchased Car". Tell me when you rent a car do you give the rental car a down payment so you can lower the daily rate? When you rent a hotel room do you give the hotel a down payment so you won't have to pay the daily hotel rate? When you are leasing a car, you are simply RENTING it for a long time. The only way you will be able to compare leases between different cars is when you are ONLY comparing lease length, lease payments and mileage. Some people will say "Oh I'm putting money down so I can buy the car cheaper at the end of the lease". I'll leave it to others to tell you what a stupid argument this is on so many different levels. You should ALWAYS be able to negotiate this "Lease acquisition fee" completely away when you negotiate the sales (lease) price of the car.

    Remember dealers love you suckers who buy leases for thousands down. :blush:
    They tell stories about these morons at Dealer parties and take their girl friends ( and yours if you are so stupid) on romantic trips to Europe to tour the BMW factories with your hard earned money! :surprise:
  • paulsazpaulsaz Posts: 19
    If the lease if from Volvo Finance North America, you can continue to lease for the same payment.
  • qbrozenqbrozen Posts: 17,148
    The whole point of a lease is to keep money in your pocket and how can you do this if you are donating money to the car dealers FU money fund?

    While I don't advocate putting money down on a lease, it is for an entirely different reason. What you are stating is just not true. Whether you lease or finance, you are borrowing money from a lender and paying interest on that money. Someone who puts money down as a cap cost reduction on a lease is merely avoiding paying interest to the lender on that money. The overall cost of the lease will be less than if they put no money down at all. It is not being thrown away, as you suggest.

    To use your analogy, YES, I would put money down at a hotel if it lowered my overall cost of staying there. For instance, you pay $100 per night for 6 nights for a total of $600, or you pay $300 up front and $40 per night for a total of $540. Where is the downside to the latter arrangement?

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

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi aeropostel. It is in your best interest to put as little money as possible down when leasing. Consumers who make large capitalized cost reductions on leased vehicles are at risk of losing them if their vehicle is totaled in an accident or stolen and never recovered. You would be better off going with a $0 down lease on the S40 that you want.

    I haven't worked up any lease payments on this car lately, but I suspect that your $250 target monthly payment is a little optimistic. This car will likely cost more to lease than that. Volvo is not currently providing any lease support on the S40, so if you were to lease one right now you would be best off doing so through an independent bank. Volvo is currently providing a special $1,500 cash incentive on leases of this car through banks other than Volvo Finance. Make sure to take this cash into account during your negotiations.

    Prices Paid: Buying & Leasing Experiences Forum
  • qbrozenqbrozen Posts: 17,148
    Consumers who make large capitalized cost reductions on leased vehicles are at risk of losing them if their vehicle is totaled in an accident or stolen and never recovered.

    Of course, the same holds true of financing, yet nobody warns against that. *shrug*
    I think your second statement is correct ... don't put down a LARGE cap cost reduction. But the earlier statement in your post, "put down as little as possible," is open to debate.

    I agree with as little cap cost reduction as possible when the money factor is so low as to justify borrowing as much as possible.

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

  • kyfdxkyfdx Posts: 27,666
    With a purchase, you have the same risk whether you make a large downpayment down, or not.. If you pay $30K, and total it right away, your insurance will likely pay you $25K, no matter what you owe on it. Put down nothing, or $10K your loss is still the same..

    At least with a lease, you have the option to not put that money at risk.. Totaling a new lease with a $4K cap reduction will likely put you $4K in the hole for just a couple of months... Without the $4K down, that money isn't at risk.. (assuming your lease has GAP).

    just my $0.02..
    Host-Prices Paid Forums

    EDIT: I think my first paragraph makes your point.. :) Any time you purchase, you have money at risk.. Just no point in taking on that same risk with a lease, when it is unnecessary...

    Prices Paid, Lease Questions, SUVs

  • qbrozenqbrozen Posts: 17,148
    Yup, you made my point. ;)

    You can have GAP on a finance, too. So, really, if your goal is to have the least money at risk, then you should always carry GAP and never put money down, regardless of financing or leasing.

    however, it seems people don't take that stance. Popular opinion seems to be putting down as much as possible when financing, yet nothing when leasing. Its contradictory, as far as I can see.

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

  • s60leasers60leaser Posts: 53
    Hello again Carman!
    I am turning in my s60 and s80 leased cars(FINALLY!) for one car and am looking at the S40 and C30, primarily to save money but stay with a Volvo for the safety. (And I love driving a Volvo :) )With all the bad economic news, what are the current lease and buy deals in my area? I am in Ct.and can use the COSTCO auto buyers program

    The one dealer phone call I have had so far mentioned lots of different numbers.(What a surprise) Of course, he immediately told me the best deal is on a move from an s60 to s80, even though I asked about an S40 and C30...
    S80 #'s:
    $7,250 discount non VCF lease
    $1,000 rebate(?Why?)
    $500 COSTCO program discount
    =$8,750 Off INVOICE? Can that be right?
    But, on a approx $40,000+ car I am still at 32K and a Mo. pymt around low 4's incl. tax.

    I tried to get some S40 #s , as I had asked for. Nothing yet.

    The C30 he mentioned at $ 23,718 as a starting price,$750 purchase rebate or $1750 lease rebate, no more details than that.
    So, QUESTIONS: :confuse:
    What numbers can I expect for the S40 and C30 ?
    RV is important as I am still considering buying this car-now or off-lease. :confuse:
    Any info on the safety of the C30?
    Any Volvo loyalty I can take advantage of?
    Is the COSTO program worth using for Volvo?

    Once again, your insight is appreciated -and VERY helpful knowing these things before the first sit-down...
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi s60leaser, or should I say C30leaser :). Volvo Finance is not currently running a special lease program on either the S40 or C30. As a result, if you were to lease either of them you will have to do so through an independent bank. The good news is that Volvo is currently providing special cash incentives on these cars when they are leased through independent banks. Specifically, Volvo is providing $1,750 on the 2008 C30 1.0, $2,250 on the C30 2.0, and $1,500 on the S40.

    The CostCo car buying program might save you some hassle if the dealer that they steer you towards is straightforward, but I very much doubt that it will provide you with a deal that's any better than what you could negotiate on your own.

    Prices Paid: Buying & Leasing Experiences Forum
  • Is Volvo offering any deals on the 2008 or 2009 S40? I can only find the $500 gas allowance. My current lease through VFNA is about to expire.
  • Any extra Factory cash should go into your pocket or towards future payments and not into the dealers pocket.
    Never make a downpayment on a lease.
This discussion has been closed.