Howdy, Stranger!

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





Volvo S40 Lease Questions

1235715

Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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: 38,518
    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: 38,518
    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: 38,518
    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....
  • 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
    Host
    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
    Host
    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
    Host
    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
    Host
    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
    Host
    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?
This discussion has been closed.