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Volvo S40 Lease Questions

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  • I have been negotiating the price for an 07 S40 at around $27k. I am now thinking that it might be a better idea to consider leasing it. How should I expect this to affect the price that I was negotiating now that I might be leasing it?

    Do dealers try to charge more for a lease than for a purchase?
  • mrrk47mrrk47 Posts: 104
    Don't let it affect it at all. You can and should negotiate price in the same manner as if you were purchasing. I once fell for the myth of no neg for leases...BS. Talk price first..settle it firm.
  • Hi Car_man, Can you provide Volvo Finance current buy rate lease money factors and residual values for 2007 S40 T5 2WD with automatic:

    24/12K, 24/15K
    36/12K, 36/15K

    Do you also know what cash incentives are available in Illinois?

    Thanks!
  • Hi newcarbuyer3. You can look up the full MSRP and dealer invoice price off the exact car that you want by visiting the following section off this site: Edmunds.com - New Vehicle Pricing. As far as this car's selling price goes, you may be able to get an idea of how mych you should pay for one right bow by visiting the following discussion: "Volvo S40: Prices Paid & Buying Experience".

    I can give you an idea of what this car's lease program is currently like. I assume that you are talking about a 2007 model. Correct me if I am wrong. Volvo Finance's current buy rate lease money factor for a 36 month lease of a 2007 S40 2.4i with 15,000 miles per year in your area are .00321 and 55%, respectively. The numbers for an otherwise identical 48 month lease are currently .00344 and 45%.

    Car_man
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    Prices Paid Forum
  • Hi sunvolvo. Volvo is currently providing a number of cash incentives on the 2006 S40 in your area. It has $2,000 bonus cash on it plus an additional $1,000 conquest / loyalty cash, plus an additional $1,250 lease cash. This all adds up to a total of $4,250 on leases of this car through Volvo Finance. This is before any sort of dealer discount. I am sure that most dealer will be fairly anxious to unload any 2006 models that they have left in inventory now that the 2007 models have arrived. If I was in the market for this car, I would shoot for around dealer invoice and then have the dealer subtract any available cash incentives.

    Car_man
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    Prices Paid Forum
  • I agree mrrk47. 63 months is way too long to lease any vehicle for. 48 months is really the longest one should lease for and I personally prefer 36 to 39 month leases.

    Car_man
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    Prices Paid Forum
  • Hello stanwelks. Volvo is currently providing $1,750 dealer cash on the 2007 S40. I do not believe that this cash is compatible with leases though Volvo Finance though. I am sure that the dealer you are working with took it into account when they quoted you a selling price for a cash purchase of this car, so they price for a lease of one through Volvo Finance may be $1,750 higher. Other than that, you should be able to negotiate the selling price of this car for a lease, just as if you were paying cash for it. You can always stop by the following discussion to see how much other community members have paid for similar cars lately: "Volvo S40: Prices Paid & Buying Experience".

    Car_man
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    Prices Paid Forum
  • Here you go, driveallday001. In your area, Volvo Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2007 S40 T5 2WD with 15,000 miles per year are .00233 and 65%, respectively. The numbers for an otherwise identical 36 month lease of this car are .00233 and 55%. If you lease with only 12,000 miles per year, this car's residual values would be 2% higher. Other than a bonus for returning Volvo Finance lessees, I do not believe that Volvo is currently providing any cash incentives on leases of this car through Volvo Finance right now. It has $1,750 dealer cash on it, but this incentive is not compatible with its special lease program.

    Car_man
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    Prices Paid Forum
  • MSRP $29,310, automatic, select and climate packages. 36 month lease, 12K/year. First month, tax and MV fees (approx $2,600) due at signing. $299/month.
  • I need some advice as to whether the following two offers from a local Volvo dealer are as good as they sound to me. Both are for a 2007 S40 T5 AWD 6-speed manual, metallic paint, audio pkg, climate pkg, premium pkg, 15,000 miles per year, and $1350 up front.
    Scenario 1 - 48 month lease, $450/month payment.
    Scenario 2 - 36 month lease, $483/month payment.
    Are these good offers? Which one is best?
  • Dear Car-Man,

    After another day of haggling, this is where I currently stand with 36-month, 15,000 miles/year lease quotes from two different dealers (this is for an '07 S40 T5 AWD, Prem Pkg, Audio Pkg, Climate Pkg, Metallic Paint and Sirius Radio @ MSRP $34,375):

    Dealer A - cap cost $26,209 - residual value 44% ($15,125) - money factor 0.00250 - total up-front money $1352 - total monthly payment (with 10% use tax) $452.

    Dealer B - cap cost $27,462 - residual value 48.64% ($16,719) - money factor: 0.00250 - total up-front money $1357 - total monthly payment $437.

    How can two dealers in the same area (Pittsburgh, PA) give me two different residual values for the same car? They both seem low compared to what I have been reading on here. Dealer A claims that Dealer B is clearly using faulty numbers, that they have a history of these kinds of stunts, and will likely pull a bait and switch on me, changing the deal with correct numbers when the time comes.

    Dealer A seems to have better service and has a better overall "feel" to me than Dealer B (for example, Dealer B seemed ultra secretive, not allowing me to take a copy of their detailed lease quote with me), but is this worth $15 a month more?

    Any and all advice would be greatly appreciated!
  • Jobualli,

    I am looking at the S40i with select and climate package at dealers in Pgh and I got $398 with tax 36/15K $1300 at siging with an msrp of $28,335, no negotiation yet just an email quote. This is from Bill Gray, where are your quotes from? I want the awd but wanted a base point for the price with s40i before I asked for the AWD pricing. I have dealt with bill gray in the past and they were all pretty honest people and were pretty no nonsense, I have not dealt with any of the other dealers yet so I will find out their pricing in the next few days.
  • I received the following lease offer for a 2007 S40 T5 AWD automatic with climate and premium packages:

    36 months, 10k miles per year, $1,200 for initial fees (bank, motor vehicle & doc fees) + first month, $0 additional down. The money factor used is .00217 and the residual is $17,573.

    For $336/month (incl tax) is this is a good deal?
  • Cheapskate,

    I put a deposit on a deal with BG on Saturday. I am glad to hear that you have had good experience with them. I will be sure to let you know how mine goes, once I have taken delivery, etc. I think my initial lack of trust was partly due to never dealing with them before and partly due to the tactics their competitor was playing. I am happy with how things have gone so far. Stay tuned...
  • Hi bigdummy77. I would be happy to give you my opinion of this deal. However, it would be a big help if you were able to provide me with its selling price first. Once I know what its price is I can tell you what I think of it and use it to calculate what this car's monthly payment should be.

    Car_man
    Host
    Prices Paid Forum
  • Greetings jobualli. 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 these deals if you let me know what these numbers are.

    Car_man
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    Prices Paid Forum
  • Hey jobualli. It does not appear as though the leases that you were quoted are bring run through Volvo Finance. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 S40 T5 AWD with 15,000 miles per year are an amazing .00001 and 51%, respectively. The deals that you were quoted are probably being run through an independent bank. Volvo dealers sometimes run leases through independent banks instead of Volvo Finance because Volvo provides special cash incentives on leases of its models through independent banks. Specifically, Volvo is currently providing a $5,500 cash incentive on leases of 2007 S40 T5 AWD models that are leased through any bank other than Volvo Finance. Make sure to use this cash to negotiate an extremely low capitalized cost for your lease.

    Car_man
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    Prices Paid Forum
  • Hi mccourt. 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
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    Prices Paid Forum
  • Car_Man,

    I am in the market to get a 2006 or 2007 S40 (any model) for $300 a month or less. The only things I need are automatic and heated seats.

    It would seem based on previous posts that Volvo is offering some handsome incentives ($5,500 cash incentive on leases of 2007 S40 T5 AWD models that are leased through any bank other than Volvo Finance) which may make the T5 more affordable that the 2.4i. Few questions.

    1) Are there any incentive in ohio (columbus) on a 2006 or 2007 2.4i? Is the incentives on the T5 available in this market?

    2) What is the residual I can use (36 month, 12k miles) for both a 2.4i and T5 (again, only automatic and heated seats needed).

    3) What is the money factor I can use assuming Volvo finances the car.

    Do you think I can achieve my $300 or less goal?

    Thanks
  • Thanks for the response. I wasn't really going to the dealer with the intention of leasing, so I don't have an actual selling price. I can tell you the MSRP on the car was $29,300.
  • lesvolvos40,

    I do not know if you can achieve that goal in Columbus, but I know Bill Gray Volvo in Pittsburgh has that very car sitting right on their showroom floor. I also think your goal of $300 a month is attainable under the right conditions.

    If I were you I would call Bill Gray Volvo and talk to their most tenured salesman. I cannot give you his name on this site, but he has a Polish last name. He may be able to make it worth the trip!

    Volvo4life
  • Hi Car-Man,

    Here are the details of the lease that I was able to arrange for the '07 S40 T5 AWD with climate, premium and audio packages and Sirius radio:

    MSRP: $34,375
    Cap cost: $27,462
    Residual: 48.6% ($16,719)
    Money factor: 0.00224
    Due at signing: $1357
    Monthly pmt: $397 + $40 (PA use tax)

    You are right, this is not through Volvo Finance, but is through US Bank according to the dealer.
  • lesvolvos40,

    I concur - it would be worth your trip to visit Bill Gray in Pittsburgh (a few hours away from Columbus). I put a deposit on an S40 T5 AWD with them. They have been a pleasure to deal with so far and blew away the best quotes I received from two other dealers. I have gone to Ohio myself to make a car purchase (BMW 3-series) in the past, and it was very worth it. Good luck!
  • Hi Carman,
    I'm looking to lease a 2007 Volvo S40 4D Sedan T5 Leather/sunroof, automatic. I live in Portland, Oregon. This is the deal I got from a dealer. Original MSRP: $25,385.00, Customer Cash Rebate: $2,500, Residual Value (49%) $12,438.65, 10,500 miles/yr, adjusted residual value: $12,692.50. It is for 36 months and with payment of $298.73/month. I believe it's a USB - Lease Program Tier 1 - Bureau Score 700+ - Zero Sec. Dep.

    Please advise me if it's a good deal for me to enter. Thank you very much for your assistance.
    Bamboo4
  • Hi Car-man,

    I am in the process of leasing the volvo S40 2.4i. I need an automatic with just the basic features. Also, I need 20,000 miles each year. One dealer quoted me $412.00 each month with nothing down for a 36 month lease. Is this a fair offer?
  • Hi lesvolvos40. Volvo is no longer providing lease support on 2006 S40 models, but it is providing $3,000 closeout dealer cash on it. Volvo is currently providing a $3,000 cash incentive on 2007 S40 2.4i and $4,500 on S40 T5 models that are leased through independent banks. I do not believe that it has cash incentives for these models when they are leased through Volvo Finance, but it does have a special lease program available on them. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 S40 2.4i with 12,000 miles per year are .00052 and 55%, respectively. The numbers for an otherwise identical lease of a 2007 S40 T5 2WD are .00022 and 54%. These money factors are very attractive. It is difficult to say what these cars' monthly payments will be without knowing what their MSRPs and selling prices are. If you provide me with these numbers I would be happy to estimate some lease payments for you.

    Car_man
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    Prices Paid Forum
  • You're welcome, bigdummy77. It is very important that you find out this car's selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash or financing it. You wouldn't pay cash for a car without asking its price. This is the same thing. Without knowing what this car's selling price is, it's difficult to tell how good a deal you are getting on it. Find out what this number is and compare it to the prices that other community members have paid for similar cars by visiting the following discussion: "Volvo S40: Prices Paid & Buying Experience".

    Car_man
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    Prices Paid Forum
  • Greetings bamboo4. Volvo is currently providing a $4,500 incentive on S40 T5 2WD models that are leased through independent banks. If you are only getting $2,500 of it, you can do better. Furthermore, the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. So, you should be able to get the entire $4,500 off of this car's price and then at least negotiate another $1,000 discount off of this car's price. You should either renegotiate with this dealer or comparison shop a little bit.

    Car_man
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    Prices Paid Forum
  • Hi bpadill2. 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 Forum
  • cdt1cdt1 Posts: 10
    I'm trying to lease a 2007 T5 2WD with audio package and sirius, premium package, climate package, keyless drive and xenon headlights. I'm leasing this for 36 months, 12k per year. Here's what they quoted me:
    MSRP $34,662
    Price $28,927 (this included the $4500 incentive)
    Proc Fee $1,095
    Lic/Title $246.50
    Acq Fee $49.50
    Net Cap Cost $31,258.30
    Residual 49%
    Money Factor .00214
    Payment $499.72

    Obviously this payment is alot higher than I expected to get. I need some help here. Did I get quoted a decent price for the car? What about that $1,095 processing fee?
    The residual also seemed a little low to me.

    If Car_man or anyone else can help, I'd appreciate it. Thanks!

    Chris
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