Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Volvo S40 Lease Questions

1356710

Comments

  • I have negotiated with several dealers.. MUST MAKE DECISION TODAY***(volvomax)and others please help the best i got was for a 2006basic S40 with climate and select package + 15k miles

    36 month lease...
    Dealer invoice 25,500 MSRP was 27,135 The dealer offered at 344.66 and i have to pay $1200 out of pocket

    He said 370.08 with everything included besided motor vehicle. Is this a good deal? what should i be looking at in terms of monthly payments.. with nothing out of pocket?
  • apm4apm4 Posts: 4
    Ok...I have spoken with the Volvo dealer and gotten some numbers. I would very much appreciate it if I could have some feedback.

    I am turning in a 2003 Saturn L200 and hope to get roughly $8000 dollars. The buyout is 10,000 so this leaves me 2000 dollars in the negative. The dealer told me Volvo switched the incentive this week and that it is no longer 4,000 dollars through a private bank but only 3,000 dollars and through the volvo financial......

    So I will be up only 1,000 dollars because of the trade in taking away from the incentive. I plan on putting another 1000 dollars down.....SO these are the numbers:

    36-month lease. Market Value of car is 24,735. I will be given a 1000 dollar incentive and putting 1000 dollars down therefore the car will have a cap cost of 22735 roughly. The money factor given was .00091 and the Residual Factor was 53. The monthly payment offered is 363.00 dollars.

    Can somebody please tell me if this a good deal, makes sense, or if I should be negotiating more. I am new at this lease game and have tried the calculations out. Some guidance would be greatly appreciated. Thanks.

    PS...I am from NY and the sales tax is 8.75 if that also makes a difference...thanks again.
  • kaceycolekaceycole Posts: 1
    I just saw an ad on TV for a year-end (closeout) lease special in the Delaware Valley (PA). Before 7/5, you can lease a 2006 S40 2.4i for $249/month with a closed-end lease for 24 months. I'm assuming this is the base model and includes 10,500 miles/year with a $.15/mile overage fee. This also includes an upfront payment of $2618, $275 refundable security deposit, first month's payment, $595 acquisition fee and $1499 cap cost reduction. And, the gross cap cost is $22,647.

    Is this sort of special deal negotiable, i.e. the price of the vehicle, more miles, number of years of the lease to 3 instead of 2, options like a mooroof and auto trans?

    Also, as we get closer to 2007, will there typically be better deals available on the "old" models? I'm in no hurry and while I know the resid value on a '06 will be lower, that should be balanced out by a lower price on the vehicle.
  • rdrnerrdrner Posts: 1
    Hi everyone, I'm searching for advice. I'm looking to lease the '06 S40 T5 AWD. 36mo/15,000 miles per year. I've been talking with two dealerships in the area and the best they can offer me is $429/mo. with $1300 due at signing, inc. tax. One dealership is offering $374 for 48 mo. with $2300 due at signing. MSRP on the car is $33k. Should I keep looking? What would be a realistic lease payment on this car? Thanks!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello shakzila. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

    Car_man
    Host
    Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi apm4. I always start replies to community members who are upside down on their current vehicles by telling them that they would be better off waiting until they are less upside down, or better yet had no negative equity in their current vehicles to get a new one. Having said this, let's talk about the Volvo that you want. Volvo is still providing large cash incentives for leases of the S40 through independent banks this month. Specifically, it has $4,500 on leases of '06 S40 2.4i, $5,000 on leases of '06 S40 T5, and $6,000 on leases of S40 AWD models through banks other than Volvo Finance. Perhaps the Volvo Finance offer is more attractive right now. If you tell me the exact model that you are getting, I can tell you what its money factor should be. I suspect that you are getting the 2.4i. If so, it looks like the dealer that you are working with is trying to mark your car's buy rate money factor up to add additional hidden back-end profit to your deal. Volvo Finance's current buy rate lease money factor for a 36 month lease of an '06 S40 2.4i in New york is only .00051. Make sure to insist that this factor is used to calculate your car's monthly payment.

    Car_man
    Host
    Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi kaceycole. While it varies from deal to deal, generally speaking manufacturers' advertised lease payments usually leave a little meat on the bone so to speak. It makes sense if one thinks about it. Dealers would be pretty peeved if an automaker advertised the thinnest possible deal on a car or truck. There is a decent chance that you can negotiate a lower selling price on the car that you saw advertised than its lease payment was based upon by shopping around. If you are able to negotiate a lower price, its payment would be lower as well. You also can adjust this car's mileage allowance from 10,500 miles per year to say 12,000 or 15,000. Doing so will lower its residual value and cause its monthly payment to increase. Leasing for a longer term will help to cancel this increase out though because generally speaking, the longer a lease is the lower its monthly payment will be. A 36 month lease of this car will almost definitely have a lower payment than a 24 month lease of it would. It's difficult to say how much less this vehicle will cost to lease later in the model year. I suspect any additional discount that you are able to negotiate because it is late in the year will be mostly offset by a drop in residual values.

    Car_man
    Host
    Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi rdrner. You never mentioned the selling price or MSRP of the cars that you are considering leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing what these cars' selling prices are in relation to their MSRP you don't know how much of a discount you are getting on them. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

    Car_man
    Host
    Prices Paid Forums
  • shakzilashakzila Posts: 6
    Thanks for responding Car_man. Here's the info.

    The MSRP is 28,630 (includes destination charge).
    Sales Price is 19,150
    36 month lease, 36,000 miles
    Monthly payment including tax === $ 296

    Payment due at signing...No money down, 1st month + tax + registration $451

    Thanks.
  • chmcmmchmcmm Posts: 8
    Shakzila, please tell me you took the deal. That's an unreal deal. Maybe I'm missing something. I'm getting around $360/month + tax for the same terms.
  • chmcmmchmcmm Posts: 8
    Car_man,

    Are there still large cash incentives from independent banks? How does that work? Do I go to the Volvo dealer and say I want to lease through another bank?

    Here's the offer I have on the table.

    S40i - MSRP is $28,275.
    $359/month + TTL in Pa.
    36 months/12,000 miles per year.

    Thanks.
  • 25stjames25stjames Posts: 6
    What are the residual and money factor for the s40 2.4 with the new lease deal that is out? Thanks.
  • shakzilashakzila Posts: 6
    You bet I took the deal. The more I looked into it, the more sense it made. Basically, I pitted about 4 dealers against each other (two figured out they couldn't compete, and I really pissed another off)....anyway worked out great, I hope the info on my deal helps out other folks....so far, GREAT CAR!
  • Shakzila,

    That sounds like a great deal! What kind of car did you trade in, and what area did you purchase from?
  • Car_man,

    I am interested in leasing an 06 2.4i Auto w/ Select Package. I have read previous posts in May and June talking about 4000 dealer cash.

    Are the dealers still willing to give great deals on these cars?

    With an MSRP of $26,749, what should is the best I could do on a negotiated cap cost?

    I plan to lease 36 or 48 months (12k miles/year), what money factors and residuals should I expect?

    Thanks, Jeff
  • shakzilashakzila Posts: 6
    volvo4life......I did not trade in any vehicle and it was in the Los Angeles area......
  • Car_Man: Will you please share money factor for the S40 T5 and estimated residuals for 24 and 36 month leases? Also, you mentioned some big cash offers earlier ($5000). When I negotiate sales price, should I work to take that $5k off the MSRP?

    Thanks!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Wow, that's an incredibly low selling price, shakzila. You're getting a $9,480 discount on this car. I suspect that this means that your lease is being run through an independent bank rather than Volvo Finance. Volvo is currently providing a special dealer cash incentive on this car for leases through independent banks. I'd say that you are getting an excellent deal on this car. It is a nice vehicle for only $296 per month with no money down.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Yes, chmcmm, Volvo is still providing additional cash incentives for leases of most models through independent banks. You can tell the dealer that you are working with that you would like to lease through a bank other than Volvo Finance, but dealers will usually automatically steer their consumers towards the best possible deal. If it works out that it is cheaper to take advantage of the additional cash and lease through Volvo Finance most dealers will point consumers in that direction.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings 25stjames. This car's lease program varies depending upon how long you lease for and how many miles per year you need to be able to drive. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. These are very common parameters. Let me know if you want something different. If you were to lease a 2006 Volvo S40 2.4i through Volvo Finance this month for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00209 and 51%, respectively.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Jeff. Over the past several months Volvo's incentives have become quite regional. As a result, I really need to know what state you are in to give you an accurate picture of what this car's current incentives are like. For now I can tell you that Volvo Finance's current 36 month, 12,000 mile per year buy rate lease money factor and residual value for the 2006 Volvo S40 2.4i are .00209 and 52%, respectively in most areas. The numbers for an otherwise identical 48 month lease are .00250 and 49%. Check out the following discussion to get an idea of what sort of price you should pay for this car right now: "Volvo S40: Prices Paid & Buying Experience".

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi alpinehills. Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2006 S40 T5 2WD with 15,000 miles per year are .00158 and 61%, respectively in most areas. The numbers for an otherwise identical 36 month lease are .00158 and 51%. Volvo has cash incentives that are compatible with leases of this car through Volvo Finance in some regions, not they are not nearly as large as $5,000. If you tell me what state you are in, I would be happy to give you an idea of what Volvo's cash incentives are like on this car in your area right now.

    Car_man
    Host
    Prices Paid Forum
  • Thanks for the help. I live in Utah, but am shopping in Los Angeles (Santa Monica Volvo). I'm trying to get the best possible deal on an '06 S40 T5, sign and drive (zippo at signing). Any help would be appreciated--thanks!
  • Well, I had to go out of state to do it, but I just put a down payment on the EXACT car I wanted (as if I had ordered it). I am a recent college grad, and needed the lowest monthly payments possible so I can start to build my bank account. So I did a 63 month lease. Here are the details...

    2006 Volvo S40 2.4i, Automatic, Select Package, Climate Package, Flint Gray Metallic, Taupe T-Tec

    63 mo. lease @ 12k mi./mo.
    MSRP - $29,085
    Gross Cap Cost - $23,700
    MF - 0.00201
    Res - %29 (8434.65)
    Down - $572
    Monthly Payment - $320

    Another great thing I found out is that the car only recently arrived in the states (5/2006), so it hasn't been sitting on a dealer lot soaking up the sun for the past 11 months!
  • Car_man,

    It was indeed through an independent bank. I took Wells Fargo to them to get the incentive and they insisted on US Bank.---so I insisted on a bigger discount to go with US Bank. The car's great. You guys run an awesome forum.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Thanks for the additional information, alpinehills. For the month of August, I believe that Volvo eliminated its lease support on the 2006 S40. That means if you want to lease one you are going to have to do so through an independent bank instead of Volvo Finance. This isn't really a big deal because when Volvo's cash incentives are taken into account independent banks often are the best option to lease them. In August, Volvo is providing a total of $3,250 in cash incentives on the '06 S40. Make sure to use this cash to negotiate an attractive selling price on the car that you want.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Thanks shakzila. Enjoy your new car :).

    Car_man
    Host
    Prices Paid Forum
  • Looking to lease an s40 T5 in TX and would like to get in with minimum down and minimum mileage. Can you tell me what I can expect from MSRP, residual, finance rate, etc. for 36 and 48 months?
  • Car Man,

    I just moved to San Francisco and am looking to lease a 2006 S40 T5 with the following specifications:
    > Titanium Grey Metallic
    > Premium Package
    > Audio Package
    > Park Assist Front and Rear
    > 36-month lease
    > 12,000 miles/year

    MSRP on the Volvo website is $33,744. I am planning on putting $3,500 down, which gets me to a calculated payment of $469/month. Based on what I have read throughout this forum that seems a bit high. Is it safe to assume that I can knock off ~$4,500 in looking for an '06?
  • mrrk47mrrk47 Posts: 104
    Wow...a 63 month lease and a 320 payment. I did a 48 month lease(as long as the warranty) everything you have except select pkg for 365...I guess a 45 extra dollars is lot of money. Wow a 63 month lease !!!!!!!!!!!!!! I didn't even know they had such a thing .Wow a 63 month lease..was 64 too long ...JK! bye the way I put nothing down, Edmonnds doesn't recommend a lease longer than the reg warranty....
This discussion has been closed.