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Volvo S40 Lease Questions

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  • I was quoted a lease deal on a Met. Silver, 06 S40 T5, Prem, Sport, Audio, Conven. Pkgs. with an MSRP of $32,225 and a sale price of $26,807. The lease is for 36 months with 15k/year and the payment are $491down and $491/Month. The price seems amazing but the payments seem really high for this price. When I go on the Volvo website finance calculator, the payments are closer to $400/month. Can anyone offer me advice about what seems wrong with this deal? We have excellent credit. The residual value is $15,145. Thanks for your help!
  • Hi jcanal. Theoretically, a consumer who leased a vehicle for three years and one who financed it and sold it after three years would come out about the same. One variable here is the mileage that you put on your car. The lowest mileage allowance that I have seen for a lease of a new Volvo through Volvo Finance is 10,500 a year. If you drive way less than this, then one would initially think that you may actually be better off paying cash for or financing your Volvo and selling it when you are tired of it. I said "one would initially think" because Volvo artificially inflates the residual values that it leases through Volvo Finance. For example, a 2006 Volvo S60 2.5T driven 15,000 miles per year and sold after three years would probably be worth at most 44% of its original MSRP. However, Volvo supports this vehicle's residual value, boosting it to 51% for a 3 year 15k lease. This means that you have to pay for much less depreciation if you lease than if you owned the car and has sold it. As a result, I personally would lean towards getting a low mileage lease through Volvo Finance, unless as I said earlier you drive way less than 10,500 miles per year.

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  • Hey sbvolvo. Let's use Volvo Finance's actual lease program to estimate what this car's monthly payment should be compared to the one that you were quoted. According to my calculations, if you were to lease a 2006 Volvo S40 T5 with an MSRP of $32,225 and a selling price of $26,807 through Volvo Finance right now for 36 months with 15,000 miles per year, its zero down, pre-tax monthly payment should be around $379. This is obviously a lot lower than the $491 that you were quoted. What might be happening here is the dealer is using a special incentive that Volvo is providing on this car for leases through independent banks to lower its selling price and then using another bank's standard lease program to calculate your payment. Specifically, Volvo is paying $3,500 dealer cash on leases of 2006 S40 T5 models through independent banks. Unfortunately, this cash is not compatible with Volvo Finance's special lease program. You might want to ask the dealer to give you their best selling price without this car factored in and have them run your lease through Volvo Finance to see what your payment would be like then.

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  • jd728jd728 Posts: 1
    Hi.. I'm new to the idea of leasing a car...I live in NJ and was looking at the volvo s40 T5 awd...the msrp is $34,050...I want my payment to around #350/mo with no money down. I called one of the dealerships in my area to get a small idea what it would take to get it this payment...the salesperson said a down payment of about $3200. I'm assuming he was using the msrp. I was wondering if this sounds right to you? Do you think it is realistic to lease the car for $350/mo with no money down??

    Thanks for your help!!
    -JD
  • vva1vva1 Posts: 4
    Please help, I am being offered a lease for $360 a month on an automatic with select package, lease for 48 months/12,000 miles/yr(MSRP $28,860) I want to buy and the offer is $25,500 plus tax and title, no dealer fee??

    Is this any good? I have to make up my mind by the end of tomorrow as the deal ends tomorrow.

    Help!!!
  • peeshpeesh Posts: 1
    Im looking to lease a volvo S40 T5, MSRP $31,705, Price $25,971. I'd like to put $4,000 down (including a trade-in)..Was quoted monthly payment for 4403, for 48 months, 12,000 miles/year. This seems high to me, but am new to the process. Any advice would be much appreciated. Thanks
  • Hi
    I am new to the posting, but have been reading the board for awhile. I have been research cars and trying to figure out leasing.
    A local Volvo dealership has $0 money down leases, $299/mo for 36 months on S40's - I think MSRP is around $24k, an ad in the paper claims lease selling price around $19k.
    Sounds like a great deal, any opinions?
  • Hi, I just got done talking with my dealer and he wants to lease me a new Volvo S40 2.4i, I would end up paying 1000 due at signing (acquisition fee, first months payment, etc) and would be paying $310 a month for 48 months. This seemed high for me, as it is a BASE S40 2.4i, ZERO options on it. I also get a Ford discount, which I think is something like 6%.

    I see on the VOLVO website theres a deal for 299 a month for 36 months, $0 due at signing now. That is for 10.5k miles per year and I would be getting 12k.

    Still, the difference between 10.5k miles and 12k miles and a 36 and 48 month lease, it doesnt seem to matchup? Especially having a little bit of a discount with Ford. Just curious as to what I should do.

    Mike
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Welcome JD. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    The lease payment for the car that you are interested in will depend upon its selling price. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Shop around with a few dealers in your area, there should be a number of Volvo dealers in New Jersey, and get a price quote on the car that you want. Then have the dealer that you are working with calculate your car's lease payment using Volvo Finance's buy rate lease money factor and residual value. These numbers will vary depending upon how long you lease for and how many miles per year you need to be able to drive. If you let me know the length and mileage that you are interested in, I would be happy to tell you what this car's lease program is currently like.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi vva1. It would be a big help if you were able to provide me with this car's full MSRP. This number will show me how much of a discount you are being given and will enable me to use Volvo Finance's actual lease program to estimate what your lease payment should be for it. Let me know and I'll tell you what I think.

    Don't worry about deadlines that dealers try to push on consumers. While Volvo's lease program are scheduled to end every month or two, it almost always introduced a new program the following month that it at least as attractive, if not more so, than its current one. Manufacturers almost never just pull the plug on their lease support for a particular model.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi peesh. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    One thing that I can tell you about this deal right off the bat is that you definitely should not make a $4,000 down payment on your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your S40 would be exactly the same, regardless of whether you had put $4,000 down, or had made absolutely no down payment at all. You can still trade in your current vehicle on a new one if you would like, just have the dealer that you are working with cut you a check for it rather than using the proceeds from it as a capitalized cost reduction.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello azhawkeye. Edmunds.com has some great articles on leasing. If you have never leased before, you definitely should check them out. Here are links to them for your convenience: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    The selling price that you saw mentioned for this car definitely looks attractive to me. Volvo doesn't have very big margins on the S40.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi Mike. The fact that you qualify for Ford's employee, or at least its supplier purchase program, should enable you to get a good deal on this car. I would be happy to give you my opinion on this deal and to work up a lease payment on the car that you are interested in using Volvo Finance's actual current lease program. In order for me to do so, I need you to provide me with the MSRP and selling price of the car that you are considering leasing. Let me know and I'll tell you what I think and do some calculations.

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  • Hi, thanks for all your help. I honestly just kind of asked, how much it would be a month for a S40, base, no bells or whistles. Im assuming the MSRP would be 24,040. I do qualify for the Ford Z plan for the Volvo as well. Im not sure what the selling price was.

    Like I said, they told me 310 a month for 48 months, but i wanted something around that for 36 months at the most.

    Im going to try the internet sales person tomorrow, to see what kind of deal I can get too. Hopefully this info is enough for you.

    Thanks again,

    Mike
  • brush99brush99 Posts: 1
    Hi I have a quick question. I went to the volvo dealer and was told by a salesperson, their deal was the s40 MSRP $29,000 (package), sale price $22,000. 27 month lease, 10,000 miles a year. No money down (tax, title, 1st month payment) = $1140 Do you think this sounds like a pretty good deal. Only thing I am worried about is the 10,000 miles a year. Do you think it is worth it to pay more a month to add more miles ? Is it worth say $20 more a month for 12,000 miles. My commute to work isnt very far, though I dont want to feel constricted to travel on the weekends cause of miles. Thanks, this is a great forum and has been very helpful looking at other's questions.
  • gregory3gregory3 Posts: 7
    I have seen 2 offers out there. 1. which one is the better offer, and is it possible to negotiate lower?

    1. 239/Month, 36 months, 4345 due at lease signing (3000 cap reduction).
    based on an MSRP of $28,750 (2.4i, auto, sunroof, climate and select package).
    Lease end buy out for: $13,225

    2. 299/Month, 27 months, only first payment due at lease signing.
    Based on MSRP of 28,610 (similar equipped as above).
    Lease end buy out for: $18,360.

    Thanks in advanced for any help.
    Greg
  • mlink999mlink999 Posts: 4
    Anyone know what the current residuals and money factors are on the S40 T5 AWD? I've been quoted 499+tax/mo, first months payment+aquisition fee+tax/title. The MSRP is $34,525. I think the lender was Wells Fargo and the money factor was .00295 and residual at 58% for 48 months? Which didn't make sense to me, maybe he meant 48%?... Wouldn't Volvo Finance have a better deal? I'd like to stick with a 36 month lease.
  • First I'd like to say how awesome Edmunds and this forum is. Now that I'm done buttering you up.

    Can someone give me the actual A1 Credit Money Factor (I think there is a special offer right now) and Residual on a 36 month, 15k miles a year lease;

    1) 2006 S40 T5 (fwd not awd)

    2) 2006 S40 2.4I (Select, Sport Packages if that matters)

    3) Can you residualize the spoiler/body cladding? (Since its a dealer add on?)

    THANK YOU IN ADVANCE!

    Support Edmunds and Click on all those lil banners!!!!
  • cvpacguycvpacguy Posts: 14
    On a car with an MSRP of 28,560, what would a 24 month (can do something longer than 24 but don't want 36) lease with 15k miles a year be? Money factor, residual, with excellent top-tier credit?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi Greg. The best way to tell which one of these leases is the better deal is to compare their selling prices. These are very important numbers for you as a consumer to know. Without the selling price, not only do you not know how much of a discount you are being given on the car that you are interested in, but it is difficult to calculate a lease payment on it. I would be happy to give you my opinion on these deals if you let me know what their selling prices are.

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