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Volvo S40 Lease Questions



  • Hi paulsaz. Volvo is not currently providing any lease support on the 2008 S40. It does have cash incentives on it though. In addition to the $500 gas allowance that you mentioned, Volvo is providing $1,500 dealer cash on the '08 S40 this month. The '09 model has the $500 gas allowance and $500 dealer cash.

    Prices Paid: Buying & Leasing Experiences Forum
  • gtz02gtz02 Posts: 8
    Asked for general numbers on a 2009 S40 2.4i with leather and climate and was told $389/mo, $2500 upfront for 36 mo, 12k/yr. I know I need to get a sales price, money factor and residual numbers but does this sound like a reasonable start?
    I got spoiled by my 2007 A4 lease which was 0 down and $410/mo but it's up in December and I've started looking around at other options.
  • Just to give people an idea on some numbers... On a non metallic paint 09 S40 with leather 48/12 with 2,000 out of pocket 299+tax is a "big loser" for a dealer and a very good deal for a customer. Costco and Loyalty do not apply to neither S40 nor C30.
  • spoke to a local dealer....crummy offer imho:

    starting price: $5250 under invoice
    term: 36 mos
    residual: 40% (with 12k mileage)
    money factor: .00240 (tier 1 credit)

    i didn't push them as i'm also working on a purchase of a certified pre-owned but this didn't seem attractive at all
  • Hi Car_Man,
    I'm shopping entry-level luxury sedans and don't see any recent info on the Volvo S40 Lease Rates. Do you have that info?

    I see they're running a special on the website for 299/mo, 36 mos, 10.5K mi/yr with 2K down. I'm hesitant to put anything down because I am one of those unlucky people that this forum discusses in theory who had their leased car totaled after driving it for less than 5 months! Ultimately I lost about $650, but still...lesson learned.

    Is it realistic to think I could negotiate with Volvo to keep the monthly payment below $300 with only first payment down?
    Thanks for your help!
  • qbrozenqbrozen Posts: 16,907
    I'm hesitant to put anything down because I am one of those unlucky people that this forum discusses in theory who had their leased car totaled after driving it for less than 5 months! Ultimately I lost about $650, but still...lesson learned.

    Ya know, I never quite understood this. The same thing would happen if putting money down on a financed car, so what is the difference?

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • My reasoning:

    A lease offers you the opportunity to avoid that with included GAP insurance (for most makes).. For most auto loans, this is an extra-cost item...

    So, why take the risk on a lease, if you don't have to?

    Moderator - Prices Paid, Lease Questions, SUVs

  • qbrozenqbrozen Posts: 16,907
    Hmmm... still not quite adding up for me. I mean, I understand your point that GAP is extra on a finance, but we're talking about very little added cost. Really, it is less than the typical inception (bank) fee on a lease. And, certainly, the cost of GAP on a finance is far less than you would lose if you put a big chunk down and total the car in the first year.

    The only reason that makes sense to me is to take advantage of super low money factor. But the same applies to special financing rates. In either of these cases, I'm all for borrowing as much as is allowed.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • Let me see if I can explain it...

    When you put money down on a lease, that's money directly out of your pocket that won't be rolled in to the value owed on the car if it were to get totaled. So, when my car was deemed a total loss a few weeks ago I automatically stopped paying the payments on my car and owed nothing more, but everything I had already spent on the car (down payment + all 5 monthly payments) will not be reimbursed by the insurance company.

    GAP insurance does not cover what you have already spent. Instead, gap insurance is to cover the difference between the pay-off value of the car (what you would have had to pay the the finance company to buy the car the day of the crash, which is essentially what your insurance agency does) and the current market value of the car (deemed by your insurance agency through their own research). Many times, lease holders end up being upside-down on their leases (meaning the current market value is less than what the finance company is owed for the pay off). This is why Gap Insurance is definitely a good idea. I was lucky enough to have had it in my lease and to have actually had a slightly higher current value than pay-off value so I didn't have to use it:)

    If you finance or own a car, then all the money that you put toward it is taken away from your total selling price and whatever money you get back from the insurance company is your's to keep and put toward another car.

    On the car I totaled, I put about $650 down...which I thought was not a lot of money and I thought it would eventually be amortized through the course of four years. However, since my car was totaled in less than 5 months of driving it, I basically am out an extra $650 (or, for those of you who see cars through monthly payments, that breaks down to the fact that over the short period of time I had my car I was paying about $500/month rather than $350/month I negotiated).

    On another slightly related note, unless you are always putting the same amount down, it's hard to compare the rates you are getting on each car. At least, in my opinion.

    Sorry for the lengthy explanation, hopefully that makes more sense!
  • I am also looking to find out the money factor and residual rates for that special deal of $299 per month.

    I know we could do better.
  • 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: 16,907
    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; '08 Town&Country

  • 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.. ;) ).


    Moderator - Prices Paid, Lease Questions, SUVs

  • qbrozenqbrozen Posts: 16,907
    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; '08 Town&Country

  • 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

  • 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: 38,518
    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

    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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.

    Prices Paid: Buying & Leasing Experiences Forum
This discussion has been closed.