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## Comments

1any advice you can give me on this deal?

2008 S40 T5 AWD; Titanium gray metallic; Premium Package, climate package and Dynaudio (plus 3 years free scheduled maintenance).

36 Month lease, 12k miles per year

Residual= 46%

Money factor= .00250

MSRP= $35242

Cap cost= not sure

Total up front cost= $468

Monthly payment including 5% MD tax= $468

Is this a good deal?

243For the 2007 Volvo S40 lease, with payment of $350 per month, did you put anything down?

4462Your feedback is appreciated

LK

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4Thanks,

Steve

4I've been looking for a T5 with the same options & mileage you referenced, and none of the dealerships I've spoke with have been even close! I'm in the Bay Area/No. California. Might I ask what part of the country you're in?

Thanks!

Billy

24I'm finding myself at a bit of a cross roads in my pursuit of an S40 T5, and would appreciate your insights.

Back in August--prior to the new 2008's arriving I had the following offer presented to me, after much haggling:

2007 S40 T5 with..

Metallic Paint, Premium Package, and dynaaudio

Miles: 12K/year

$32,805 - MSRP

$26,609 - Capital cost reduction

Lease offered: 36 mo., at $330/mo. (payment included sales tax), with $1295 due at signing. I went to the dealership to purchase the car, and fell victim to what felt like a classic bait & switch, as someone else 'had just bought my same car' and it was the last one.

After this offer disappeared, I spoke to four different sales reps. at various dealerships in the month of Sep-Oct., and they told me that these terms no longer even close to possible because the money factor on the 2008 is much higher when the models first come out.

My FICO is north of 740, so I should be able to obtain the most fav. credit terms.

Of course, being how fickle my wife is, her needs have changed, and she now wants the climate package as well. Also, the more, I read about leasing, the more it seems to make sense to try and obtain a lease with as close to zero out of pocket--or just first months payment. You mentioed in another posting that if I use non-volvo financing, the dealership has an extra $5750 towork with in reducing the cap cost. The MSRP on this car would be $33,792 (per edmunds.com). Okay, so I've written you a bit of an essay here, so allow me to summarize my questions:

1) Now that we're in early December, what is the money factor for a T5? How often does the money factor change?

2) Does it come down on a predictably downward slop as the year goes on and we approach a new year's model release?

3) How good an offer did I receive back in August, and is it realistic to expect to be able to obtain such terms at this time of year?

4) When you say going outside Volvo finance, is that something I tell the dealer, or do I need to show up approved through another bank ready to play ball?

5) From you experience, how much of that $5750 could I reasonably expect the dealer to part with? Also, they have another $1150 in cash incentives on the back end right now, correct?

6) Best case scenario, what would assess to be a really good deal, with zero out of pocket, 12k miles, on the car I describe?

I know this is a long one, so thank you in advance!

Billy C

3,613But, you're right, I haven't seen any deals like that since then. You would think that any remaining '07's that it would be possible to deal on 'em, but apparently not on the '08's. At least not yet, anyway.

-Brian

38,515You don't have to get pre-approved to lease this car through an independent bank on your own, the dealer will take care of that for you. If leasing through a bank other than Volvo finance so that you can take advantage of the additional cash incentive will result in the lowest monthly payment, the dealer will likely steer you in this direction. If I was going to lease this car through an independent bank, I personally would want the dealer to subtract the entire cash incentive from you car's selling price.

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4Just a couple of quick techincal follow up questions if I may: (I'm a mortgage banker, so it's all about the numbers for me.

1) Usin the aforementioned money factor of .00152, do I simply multiply this value by the selling price to produce what my payment should be? I must be missing something, for when I do so, the numbers don't foot. Let's use a selling price of $26000 as our baseline and please walk me through the calculation.

2) How can I calculate my tcost of money as a true interest rate using the money factor?

Thanks again, you've been a big help.

Billy

47,115regards,

kyfdx

MODERATORPrices Paid, Lease Questions, SUVs

4With Kyfdx's gracious assistance and direction to a handy formula

I computed that the following

$33,392 - MSRP of the S40 T5 with Premium pkg, dynaaudio, climate, & met. paint

$31,138 - Invoice

(5750) I subtracted the full $5,750 for using an outside lender

(750) I know I'm being optimistic, but I subtracted the full cash to dealer current incentive, leaving me a cap cost of $24,638. I then used the formula, and came out with the following:

Cap cost of $24638 x residual of 51% = $12,565

Depreciation is $12,073 (cap cost - residual/36 months = $335.36

Money factor of .00142 x (24368+ 12,750) = $52.71

I then added $335.36 + $52.71, which gives me a pretax payment of $488.07.

Does that look right? My take away from performing this excercise is that regardless of how low I can get my cap cost, a lousy money factor will really jack the payments, right? You have mentioned in previous posts that Volvo's current lease plan/money factor is not so good. Given my exemplary credit, what range of money factor should I expect to be able to find w/an independent bank on my own?

Thank you again,

Billy C

19,490I then added $335.36 + $52.71, which gives me a pretax payment of $488.07.Obviously, you meant $388.07. just clarifying for other readers.

But you did make a fatal mistake.

Cap cost of $24638 x residual of 51% = $12,565Residual is from the MSRP. So its $33,392 x .51 = 17,029.92. Leaving you about $7600 to pay off. However, you are forgetting several fees that add to the cap cost, such as inception, bank, doc fees, and MVC.

My take away from performing this excercise is that regardless of how low I can get my cap cost, a lousy money factor will really jack the payments, right?yup. But I think a lousy residual hurts more.

Your calculated MF seems awfully low, however. Last I checked, rates were in the mid .002 range. You can check out leasecompare.com to get an idea.

'14 Jetta TDI wagon; '98 Volvo S70 base; '14 Town&Country Limited; '09 LR2 HSE. 41-car history and counting!

277I'm looking to lease a car and i'm thinking about leasing a 2008 volvo s40 T5. I was wondering if anyone knows the current incentives/rebates that Volvo is offering. Also does anyone know what the current residual rate/money factor would be for a 24 month lease at 12,000 miles? The MSRP on the model i want is $33,900. Edmunds.com says i should pay around $31, 052 for that. Does that include any rebates volvo will offer, or is that the number i should aim to get them down to prior to including any rebates on top?

Thanks to anyone who can help.

7I am a sales consultant for Volvo and own a S40 T5 myself. I leased my car last july I believe, and since I do work for Volvo I am very satisfied with the deal I was able to give myself. Let me share with you what I got b/c it doesnt seem like much b/c Volvo doesnt offer very much incentives for the T5. So don't be turned off if your dealer isn't very flexible (they're not given much room). My car is the 2007 S40 T5 FWD at msrp of $33,005 and cap cost was $30,000. 36 months 15,000 miles per year I pay $472.00/month including tax with $500 down. So I guess what I'm saying to you is if you can beat this deal or match it, you've done very well for yourself. I know my dealership's gross profit on this car was NEGATIVE NEGATIVE! I love my car to death and wouldnt drive anything else and is definitly worth the money. I hopes this gives you a good idea where to start with negotiating. Good luck!

77I talked with the dealer and got him down a little. The MSRP is 33,000. They dropped it to 31,000 (invoice is 30,800). Then they took off the $6000 incentive so it comes down to 25,000 (but you have to have $995 in volvo/bank fees so the Net Cap is 25995). As for a net cap i think that is a very good deal. However, to get the $6000 off i have to go through volvo's outside lender who screws me with the residual and the money factor. the residual rate is 43% and the money factor is .00202 (or 4.92%).

when you calculate it out, see below, at $0 down, it comes to about $408 a month pre-tax and 429 with 5% sales tax (MA) for a 36 month lease at 12,000 miles.

MSRP- 33,014 x .43= 14196

25995 - 14196= 11, 798

11, 798/36= 327.95

25995 + 14196= 40191 x .00202= 81

327 + 81= 408

408 x .05 = 20 in tax a month

408 + 20= 429 a month with tax with $0 money down

this seems like a decent deal to me, any opinions? does anyone think i can get them to drop it a little more (ie from 31,000 to say 30,000 or 30,500)?

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1The salesmen gave me a rough price of 399 plus tax with 945 down for 36 months with only 12000 miles a year.

With the A-plan I get invioce price with no doc fees. I thought this price they quoted me seems really high for a car that cost in low 22,000 area after A-plan.

Please let me know what you guys think about the price and where the price should be for a 36 month at 15000 miles a year.

THANK YOU!