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Volvo S40 Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    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.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    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.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    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.

    Car_man
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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: 38,515
    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.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi mlink999. I only personally keep tabs on the lease programs that are being offered by manufacturers' captive finance companies. As a result, I can give you an idea of what Volvo Finance's current lease program for this car should be like, but I am not sure about Wells Fargo's program. If you were to lease a 2006 Volvo S40 T5 AWD through Volvo Finance right now for 48 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00173 and 42%, respectively in most areas. The numbers for a 36 month, 15,000 mile per year lease of this car through Volvo Finance are currently .00138 and 51%, respectively in most areas. The reason that you were quoted a lease on this car through Wells Fargo is that Volvo is currently providing a $5,500 cash incentive on '06 S40 T5 AWD models that are leased through independent banks. Make sure to take this cash into account during your negotiations.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi cvpacguy. The S40's lease program varies depending upon the exact trim level of the car that you want. Are you interested in the 2.4i, T5, or T5 AWD model? Let me know and I will be happy to give you an idea of what Volvo Finance's current lease program is like for it. I will estimate what the lease payment for the car that you are interested in should be like as well if you provide me with an approximate selling price for it.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'm glad that you enjoy this Forum so much, coast2coast. According to the latest information that I have seen, if you were to lease a 2006 Volvo S40 T5 FWD through Volvo Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00125 and 49%, respectively in most areas. The numbers for an otherwise identical lease of an '06 S40 2.4i should be .00159 and 49%, respectively in most areas. You may want to consider leasing these cars through an independent bank rather than through Volvo Finance. Volvo is currently providing a $4,000 cash incentive on leases of '06 S40 2.4i models and $4,500 on '06 S40 T5 FWD models through independent banks.

    Car_man
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  • 25stjames25stjames Posts: 6
    Carman, thank you for providing this information. Can you tell me what the MF and residual for a Volvo S40 2.4i sedan with automatic transmission is at 10500 or 12000 miles/36 months are? Thank you.
  • cvpacguycvpacguy Posts: 14
    Hey Car_man,

    I'm interested in both the T5 and 2.4, depending on how good the deal is. I'm looking at either a 27 or 36 month lease. Front-wheel drive as well.

    I've been reading that people are getting these cars for around invoice, so let's go with that as an estimate. Thanks!
  • gkrongkron Posts: 1
    Hello,

    I was just wondering if I'm getting a good deal on a leasefor an S40IASR with the select and climtate packages. I was quoted at $355/month for 27 months 10k miles/yr no money down everything rolled in. I don't have the exact numbers of the deal but the sales price was about $22,500 and the residual was $17,000. Any input would be aprreciated.

    Thanks,

    Gary
  • johnedmjohnedm Posts: 1
    Working on a deal for a manual s40 T5 AWD right now and waiting for the paperwork from the dealer. Quote was $301/mo plus tax for 3 years/12,000 a year. $954 down plus MV fees. MSRP of the car was a little over $29,000. Seems like a great deal so I jumped on it.
  • cvpacguycvpacguy Posts: 14
    that seems like an AMAZING deal...can you give me details in terms of the residual value and money factor? what was the final capitalized cost you negotiated?
  • volviovolvio Posts: 2
    Hello,

    Great discussion board by the way.

    My wife and I are about to dive into the current a/z lease plan on an s40 2.4($2250 in bonus, $0 cap reduction, 24 mo, 10,500 mi/yr, , net cap cost of $21,078 on an msrp of 24,735)and I just want to know if the a/z plan is really the best I can do or am I better off negotiating on my own.
    Is there ANYTHING to negotiate here?
    Thank you for the great board!

    Ivan
  • volviovolvio Posts: 2
    Hello,

    Great discussion board by the way.

    My wife and I are about to dive into the current a/z lease plan on an s40 2.4($2250 in bonus, $0 cap reduction, 24 mo, 10,500 mi/yr, , net cap cost of $21,078 on an msrp of 24,735 all for $$246 / mo with 1,100 at signing. I just want to know if the a/z plan is really the best I can do or am I better off negotiating on my own.
    Is there ANYTHING to negotiate here?
    Thank you for the great board!

    Ivan
  • volvomaxvolvomax Posts: 5,274
    Nope, nothing to negotiate if you have a/z plan.
    You walk in, sign up say thank you and drive out.

    Thats what the plan is for.
  • cvpacguycvpacguy Posts: 14
    Hi Car_man:

    can you provide the current lease information on a 2006 S40 2.4i with select package and automatic transmission? I'm looking at 24, 27, and 36 month leases with 12,000 miles per year. If you could provide the info for that, that would be great. I can calculate my own payment once I have the residual value and money factor from you. I'm looking for a minimum drive-off and would like to know which of the terms you think would lead to the lowest payment.

    Also, a dealer today offered me almost 6,000 off of the MSRP of the car built out the way I want it; is there a special lease support program right now? I'm waiting for a final worked-up quote.
  • avalon2000avalon2000 Posts: 25
    Wish to know, in advance, what may be best deal to lease following fully loaded T5:

    MSRP: $39,877
    price to me: $34,985 [via CarsDirect quote]
    sales tax: 8.375% [NYS/NYC]
    Duration: 36 mo.
    $ down: $0.00
    Miles @ yr: 15,000

    and calculate same with

    Duration: 24 mo.
    Miles @ yr: 12,000

    re first scenario with a .00138 money factor, 51% residual I came up with $520.86@ mo. incl. tax, but not including any lease orig. or return fees if any.
  • shakzilashakzila Posts: 6
    Great site!

    Say, Volvomax, how would I incorporate the $4,000 dealer incentive for leasing through a bank into my negotiations?

    thanks.
  • volvomaxvolvomax Posts: 5,274
    First of all, leasing an 06 anything in August isn't smart because of the low residuals.
    If you want to lease an S40, do it now.
    Otherwise, wait for the 07's and start over.
  • cvpacguycvpacguy Posts: 14
    hey volvomax-- since Car_man is nowhere to be found, can you give me the residual and MF info I'm looking for? My post is above-- looking for an S40 2.4i and am looking for the info for both a 24 month and 36 month (if a 27 is available, then that too) w/12k mile lease.

    Thanks!!
  • volvomaxvolvomax Posts: 5,274
    VFNA money factor is the same .00187
    Residual @ 24 mos 64% 36 mos 53%
  • 25stjames25stjames Posts: 6
    Are the money factor and the residual the same for the s40 2.4? Thanks.
  • volvomaxvolvomax Posts: 5,274
    That IS the info for the 2.4
  • shakzilashakzila Posts: 6
    Hello all,

    Dealer is offering me the following 2.4i in ice white, with auto, select pkg, DSTC....

    Sales Price... 19,150
    36 month lease, 36,000 miles
    No money down
    1st month + tax + registration
    Monthly payment including tax === $ 296

    What do you think??

    Not sure what
This discussion has been closed.