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Volvo S40 Lease Questions



  • paulsazpaulsaz Posts: 19
    Carman thanks for the previous info, now that it is April--do you have the April numbers on the base S40 2.4i? I still have my X-plan pin number and currently have a S40 lease about to expire. Is Volvo offering any loyalty cash? I would like to try to get the same type of deal I had three years ago: No down payment and $257 per month for 36 months/ 10,000 miles per year.
  • quick5quick5 Posts: 3
    Wats up carman I am 21 years old this summer and I just got a new job where I make 28,000 annually. I have been fascinated with the volvo s40 since i first saw it in 2005. I am undecided I want to buy it but part or me thinks it would make more sense to lease. the msrp for one i selected is 29,825 and the invoice is 27702. is it even practical to want to get this as my first car? I've been told i have expensive taste but i think leasing it wouldn't be that bad 3 years isn't bad. Please help also I don't kno that much about leasing just that i may or may not have to pay a fee at the end or how much i wud haveto pay to buy the car afterwards. any insight is greatly appreciated.. I live in Queens NY
  • gforce11gforce11 Posts: 225
    Hey Quick5, i don't think you need to ask Carman about that. Haahaa. I would say based on the income you make, even leasing that car will become a financial burden for you down the road. Leasing isn't as clean cut as buying in my opinion. It's got a lot provisions/limitations etc...Make sure you learn everything you can about leasing before you even consider it (such as how to calculate the lease, fees, restrictions, liabilities, turn in fees, etc...) The first car I ever got for myself was a I paid through the nose to maintain that "expensive taste" of mine.
  • qbrozenqbrozen Posts: 17,666
    You could find yourself a nice CPO one for less than a new Honda.

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • quick5quick5 Posts: 3
    CPO? lol immmm veryy neww to this
  • quick5quick5 Posts: 3
    so would u recommend me just finance it n buy it or is the point ur getting at to just settle for cheaper ? lol
  • qbrozenqbrozen Posts: 17,666
    CPO = certified pre-owned

    CPO carries a warranty that lasts for longer than the factory warranty, in many cases, and you've avoided the steepest deprecation on the vehicle (the first 2-3 years). Its really a great way to go.

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • nofeernofeer Posts: 381
    has anyone traded in a near end of lease s40 t5 awd, my last payment is 6/1 i want to get my wife a new vw jetta se. the lease company gave me 3 options buy it, bring it back during june or have the dealer get a "trade quote" it has 28kmiles it's red.
    so any suggestions or do i just have to wait. it doesn't have to be a t5 perhaps any end of lease trade in option
  • aeropostelaeropostel Posts: 10
    Hey car-man

    any idea where i should be at on a 48 month 12k/year lease on an s40 2.4i automatic, leather package

    im looking to be at about 250 or so a month with no more than 2000 total out of pocket
    is that feasible?

  • If you do this ( it is usually called an lease aquisition fee) then I have bridge to sell you in Brooklyn!

    The whole point of a lease is to keep money in your pocket and how can you do this if you are donating money to the car dealers FU money fund? :mad:

    Remember you are NOT buying the car so why put money down on something you don't own? You put money down on a House and a "Purchased Car". Tell me when you rent a car do you give the rental car a down payment so you can lower the daily rate? When you rent a hotel room do you give the hotel a down payment so you won't have to pay the daily hotel rate? When you are leasing a car, you are simply RENTING it for a long time. The only way you will be able to compare leases between different cars is when you are ONLY comparing lease length, lease payments and mileage. Some people will say "Oh I'm putting money down so I can buy the car cheaper at the end of the lease". I'll leave it to others to tell you what a stupid argument this is on so many different levels. You should ALWAYS be able to negotiate this "Lease acquisition fee" completely away when you negotiate the sales (lease) price of the car.

    Remember dealers love you suckers who buy leases for thousands down. :blush:
    They tell stories about these morons at Dealer parties and take their girl friends ( and yours if you are so stupid) on romantic trips to Europe to tour the BMW factories with your hard earned money! :surprise:
  • paulsazpaulsaz Posts: 19
    If the lease if from Volvo Finance North America, you can continue to lease for the same payment.
  • qbrozenqbrozen Posts: 17,666
    The whole point of a lease is to keep money in your pocket and how can you do this if you are donating money to the car dealers FU money fund?

    While I don't advocate putting money down on a lease, it is for an entirely different reason. What you are stating is just not true. Whether you lease or finance, you are borrowing money from a lender and paying interest on that money. Someone who puts money down as a cap cost reduction on a lease is merely avoiding paying interest to the lender on that money. The overall cost of the lease will be less than if they put no money down at all. It is not being thrown away, as you suggest.

    To use your analogy, YES, I would put money down at a hotel if it lowered my overall cost of staying there. For instance, you pay $100 per night for 6 nights for a total of $600, or you pay $300 up front and $40 per night for a total of $540. Where is the downside to the latter arrangement?

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi aeropostel. It is in your best interest to put as little money as possible down when leasing. Consumers who make large capitalized cost reductions on leased vehicles are at risk of losing them if their vehicle is totaled in an accident or stolen and never recovered. You would be better off going with a $0 down lease on the S40 that you want.

    I haven't worked up any lease payments on this car lately, but I suspect that your $250 target monthly payment is a little optimistic. This car will likely cost more to lease than that. Volvo is not currently providing any lease support on the S40, so if you were to lease one right now you would be best off doing so through an independent bank. Volvo is currently providing a special $1,500 cash incentive on leases of this car through banks other than Volvo Finance. Make sure to take this cash into account during your negotiations.

    Prices Paid: Buying & Leasing Experiences Forum
  • qbrozenqbrozen Posts: 17,666
    Consumers who make large capitalized cost reductions on leased vehicles are at risk of losing them if their vehicle is totaled in an accident or stolen and never recovered.

    Of course, the same holds true of financing, yet nobody warns against that. *shrug*
    I think your second statement is correct ... don't put down a LARGE cap cost reduction. But the earlier statement in your post, "put down as little as possible," is open to debate.

    I agree with as little cap cost reduction as possible when the money factor is so low as to justify borrowing as much as possible.

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • kyfdxkyfdx Posts: 31,079
    With a purchase, you have the same risk whether you make a large downpayment down, or not.. If you pay $30K, and total it right away, your insurance will likely pay you $25K, no matter what you owe on it. Put down nothing, or $10K your loss is still the same..

    At least with a lease, you have the option to not put that money at risk.. Totaling a new lease with a $4K cap reduction will likely put you $4K in the hole for just a couple of months... Without the $4K down, that money isn't at risk.. (assuming your lease has GAP).

    just my $0.02..
    Host-Prices Paid Forums

    EDIT: I think my first paragraph makes your point.. :) Any time you purchase, you have money at risk.. Just no point in taking on that same risk with a lease, when it is unnecessary...

    Prices Paid, Lease Questions, SUVs

  • qbrozenqbrozen Posts: 17,666
    Yup, you made my point. ;)

    You can have GAP on a finance, too. So, really, if your goal is to have the least money at risk, then you should always carry GAP and never put money down, regardless of financing or leasing.

    however, it seems people don't take that stance. Popular opinion seems to be putting down as much as possible when financing, yet nothing when leasing. Its contradictory, as far as I can see.

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • s60leasers60leaser Posts: 53
    Hello again Carman!
    I am turning in my s60 and s80 leased cars(FINALLY!) for one car and am looking at the S40 and C30, primarily to save money but stay with a Volvo for the safety. (And I love driving a Volvo :) )With all the bad economic news, what are the current lease and buy deals in my area? I am in Ct.and can use the COSTCO auto buyers program

    The one dealer phone call I have had so far mentioned lots of different numbers.(What a surprise) Of course, he immediately told me the best deal is on a move from an s60 to s80, even though I asked about an S40 and C30...
    S80 #'s:
    $7,250 discount non VCF lease
    $1,000 rebate(?Why?)
    $500 COSTCO program discount
    =$8,750 Off INVOICE? Can that be right?
    But, on a approx $40,000+ car I am still at 32K and a Mo. pymt around low 4's incl. tax.

    I tried to get some S40 #s , as I had asked for. Nothing yet.

    The C30 he mentioned at $ 23,718 as a starting price,$750 purchase rebate or $1750 lease rebate, no more details than that.
    So, QUESTIONS: :confuse:
    What numbers can I expect for the S40 and C30 ?
    RV is important as I am still considering buying this car-now or off-lease. :confuse:
    Any info on the safety of the C30?
    Any Volvo loyalty I can take advantage of?
    Is the COSTO program worth using for Volvo?

    Once again, your insight is appreciated -and VERY helpful knowing these things before the first sit-down...
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi s60leaser, or should I say C30leaser :). Volvo Finance is not currently running a special lease program on either the S40 or C30. As a result, if you were to lease either of them you will have to do so through an independent bank. The good news is that Volvo is currently providing special cash incentives on these cars when they are leased through independent banks. Specifically, Volvo is providing $1,750 on the 2008 C30 1.0, $2,250 on the C30 2.0, and $1,500 on the S40.

    The CostCo car buying program might save you some hassle if the dealer that they steer you towards is straightforward, but I very much doubt that it will provide you with a deal that's any better than what you could negotiate on your own.

    Prices Paid: Buying & Leasing Experiences Forum
  • Is Volvo offering any deals on the 2008 or 2009 S40? I can only find the $500 gas allowance. My current lease through VFNA is about to expire.
  • Any extra Factory cash should go into your pocket or towards future payments and not into the dealers pocket.
    Never make a downpayment on a lease.
  • Hi paulsaz. Volvo is not currently providing any lease support on the 2008 S40. It does have cash incentives on it though. In addition to the $500 gas allowance that you mentioned, Volvo is providing $1,500 dealer cash on the '08 S40 this month. The '09 model has the $500 gas allowance and $500 dealer cash.

    Prices Paid: Buying & Leasing Experiences Forum
  • gtz02gtz02 Posts: 8
    Asked for general numbers on a 2009 S40 2.4i with leather and climate and was told $389/mo, $2500 upfront for 36 mo, 12k/yr. I know I need to get a sales price, money factor and residual numbers but does this sound like a reasonable start?
    I got spoiled by my 2007 A4 lease which was 0 down and $410/mo but it's up in December and I've started looking around at other options.
  • Just to give people an idea on some numbers... On a non metallic paint 09 S40 with leather 48/12 with 2,000 out of pocket 299+tax is a "big loser" for a dealer and a very good deal for a customer. Costco and Loyalty do not apply to neither S40 nor C30.
  • spoke to a local dealer....crummy offer imho:

    starting price: $5250 under invoice
    term: 36 mos
    residual: 40% (with 12k mileage)
    money factor: .00240 (tier 1 credit)

    i didn't push them as i'm also working on a purchase of a certified pre-owned but this didn't seem attractive at all
  • Hi Car_Man,
    I'm shopping entry-level luxury sedans and don't see any recent info on the Volvo S40 Lease Rates. Do you have that info?

    I see they're running a special on the website for 299/mo, 36 mos, 10.5K mi/yr with 2K down. I'm hesitant to put anything down because I am one of those unlucky people that this forum discusses in theory who had their leased car totaled after driving it for less than 5 months! Ultimately I lost about $650, but still...lesson learned.

    Is it realistic to think I could negotiate with Volvo to keep the monthly payment below $300 with only first payment down?
    Thanks for your help!
  • qbrozenqbrozen Posts: 17,666
    I'm hesitant to put anything down because I am one of those unlucky people that this forum discusses in theory who had their leased car totaled after driving it for less than 5 months! Ultimately I lost about $650, but still...lesson learned.

    Ya know, I never quite understood this. The same thing would happen if putting money down on a financed car, so what is the difference?

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • kyfdxkyfdx Posts: 31,079
    My reasoning:

    A lease offers you the opportunity to avoid that with included GAP insurance (for most makes).. For most auto loans, this is an extra-cost item...

    So, why take the risk on a lease, if you don't have to?

    Prices Paid, Lease Questions, SUVs

  • qbrozenqbrozen Posts: 17,666
    Hmmm... still not quite adding up for me. I mean, I understand your point that GAP is extra on a finance, but we're talking about very little added cost. Really, it is less than the typical inception (bank) fee on a lease. And, certainly, the cost of GAP on a finance is far less than you would lose if you put a big chunk down and total the car in the first year.

    The only reason that makes sense to me is to take advantage of super low money factor. But the same applies to special financing rates. In either of these cases, I'm all for borrowing as much as is allowed.

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • Let me see if I can explain it...

    When you put money down on a lease, that's money directly out of your pocket that won't be rolled in to the value owed on the car if it were to get totaled. So, when my car was deemed a total loss a few weeks ago I automatically stopped paying the payments on my car and owed nothing more, but everything I had already spent on the car (down payment + all 5 monthly payments) will not be reimbursed by the insurance company.

    GAP insurance does not cover what you have already spent. Instead, gap insurance is to cover the difference between the pay-off value of the car (what you would have had to pay the the finance company to buy the car the day of the crash, which is essentially what your insurance agency does) and the current market value of the car (deemed by your insurance agency through their own research). Many times, lease holders end up being upside-down on their leases (meaning the current market value is less than what the finance company is owed for the pay off). This is why Gap Insurance is definitely a good idea. I was lucky enough to have had it in my lease and to have actually had a slightly higher current value than pay-off value so I didn't have to use it:)

    If you finance or own a car, then all the money that you put toward it is taken away from your total selling price and whatever money you get back from the insurance company is your's to keep and put toward another car.

    On the car I totaled, I put about $650 down...which I thought was not a lot of money and I thought it would eventually be amortized through the course of four years. However, since my car was totaled in less than 5 months of driving it, I basically am out an extra $650 (or, for those of you who see cars through monthly payments, that breaks down to the fact that over the short period of time I had my car I was paying about $500/month rather than $350/month I negotiated).

    On another slightly related note, unless you are always putting the same amount down, it's hard to compare the rates you are getting on each car. At least, in my opinion.

    Sorry for the lengthy explanation, hopefully that makes more sense!
  • I am also looking to find out the money factor and residual rates for that special deal of $299 per month.

    I know we could do better.
This discussion has been closed.