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Volvo S40 Lease Questions

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  • 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
    Host
    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
    Host
    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
    Host
    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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