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2013 and earlier Volvo S60 Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
edited July 7 in Volvo
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Volvo S60. Thanks.

Car_man
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Comments

  • urnutsurnuts Posts: 15
    Posted in the wrong area.

    Here's my deal:

    2005 S60R
    MSRP: $42,165 selling price: $35,005
    $1000 Acquisition fee
    Money factor (I think) is .0021
    Residual is: $19,395 (.46)?
    12K/year
    36 month lease @ $488/month
    Money down is: $3607(Acquisition fee of $1000, first payment of $488, $2000 cash, and about $120 in fees.)

    What do you think- I like the selling price, but the "deal" has me a bit confused. My credit score is about 750- I think that the acquisition fee of $1000 is absurd!
  • Hi urnuts. Your lease must be through a bank other than Volvo Finance because to the best of my knowledge, it is no longer leasing 2005 models. Volvo is currently providing $4,500 dealer cash on the 2005 S60 R. Judging by the prices that you mentioned in your post, you are getting all of this dealer cash and are getting this car for pretty close to dealer invoice. This sounds like a fair deal for this car to me. I cannot comment on the other parameters of your lease because I am not familiar with the programs that is being offered on this car through independent banks right now, other than to say that the money factor and residual value that you were quoted for this car look reasonable to me. You're right about the $1,000 acquisition fee though. I'd say that it is around $400 to $500 too high. Also, you mentioned that you are considering making a $2,000 capitalized cost reduction on your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your S60 would be exactly the same, regardless of whether you had put $2,000 down, or had made absolutely no down payment at all.

    Car_man
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  • urnutsurnuts Posts: 15
    Thanks for the help. You are correct, the lease is through Chase (JP Morgan Chase). After reading your responses/comments to the other posters, I now understand that putting money down is NOT a good idea. I think I'd like to do this- but only if they can get the acquisition fee down to $600... max; Just bugs me!
    (Volvo Financial charges $575)
    The "deal", from the selling price standpoint, seems fair; from $42K down to $35K.
    I've just never leased before, and inherently don't like the idea but, I do understand the pros & cons, and think I might try it on this car.
    Thanks so much for your help!!
  • myclemycle Posts: 3
    Volvo Financial currently has a lease offer on the S60 2.5T that I plan on looking into. The car I'm interested in is priced as follows:
    MSRP $30,270
    Black N/C
    Premium Package $2,995
    Climate Package $675
    Satellite Radio Preparation - Sirius $75
    Destination Fee $695
    Total $34,710

    The current advertised lease offer is $299/mo. for 36 mos.; 30,000 mi.; $4,069 due at lease inception ($2850 cap reduction, $595 acq. fee, $325 sec. deposit, and $299 1st payment); on a vehicle with a gross cap cost of $30,191. Buy out is at $16,871 with $395 disp. fee.

    I plan to try to work out a 36 mo. deal that would require a lower or no cap reduction and a 12,000 mile per year allowance. Given the current Vovlo lease incentives, could you give me an idea of what a fair deal might look like on the $34,710 car I'm looking at? Thanks in advance for any guidance you can provide.
  • You're welcome urnuts. Let me know if you have any other questions.

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  • Hi mycle. After taking the down payment into account, it appears as though the advertised lease that you mentioned is based upon a selling price that is just over $1,600 under full MSRP. This is a reasonable selling price, so let's use it to estimate the revised lease payment that you are interested in. According to my calculations, if you were to lease a 2006 Volvo S60 2.5T with an MSRP of $34,710 and a selling price of $33,041 through Volvo Finance right now for 36 months with 12,000 miles per year, its zero down pre-tax monthly payment should be around $411.

    Car_man
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  • Trying to tie-down the November MF & Residuals for a 2006 S60 2.5T.

    Can't seem to find any info on MF.

    Residuals for would be for the following terms:
    24/12k
    24/15k

    36/12k
    36/15k

    I need to close a lease prior to month end as my current car is due back on Nov 29. Your assistance would be appreciated.

    Lastly if a 'host' is responding, could you check my similar post in the Saab 9.3 forum as those are the two cars in the running.

    Thanks,
    Michael
  • Here's the info that you're looking for, Michael. If you were to lease a 2006 Volvo S60 2.5T through Volvo Finance right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00001 and 61%, respectively. Its numbers for an otherwise identical 36 month lease should be .00008 and 51% in most areas.

    Car_man
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  • I got my lease in Dec. of 2002 and it was through Chase Manhattan. My acquisition fee was $650. I formerly worked at a car dealership and can tell you that acquisition fees vary among banks. In the future, it's just one more thing to remember when you're negotiating, if it's that important. Even with my experience, it's difficult to remember every little detail to make sure I'm getting the best deal. Leases can be complicated. I can also tell you that Chase is better and fairer than most other banks when it comes to leases. Definitely better than Wells Fargo or B of A. The extra $300 is very little in comparison to what the overall cost might have been through a different bank, including Volvo Finance (they're on drugs).
  • I've received the following "deal" for leasing a 2006 Volvo S60 2.5T with a MSRP of $35185. "X"plan pricing of $33468 less complimentary premium package of $2995, making the purchase/lease price $30,493. I've been quoted the following lease amount. 15,000 annual miles, 36 month lease, $434.49 (includes personal property taxes) with initial $933 payment. Does this sound reasonable? Any suggestions to lower amounts?
  • But would putting a down payment effect your monthly payments by making them lower?

    Jen
  • Was in a NJ dealership today and spoke about lease pricing on a new S-60. When I asked about a manual tranny, the salesman told me the lease would be worse with a manual. Is this because the resale at end of lease would be less due to a stick? For an automatic,He had me at 450 per mo., 3 yr lse w/15,000 miles per year, with refundable security of 325, first months payment @450, bank charge of 650 and a 1000 down payment. I'd much rather a manual tranny. Any thoughts on this deal, good/bad and ideas about the manual versus automatic?
  • guyfguyf Posts: 456
    Did you road test both? With a turbo engine, a manual tranny is not necessarily the best choice. Everytime you lift off the accelerator pedal to shift, you loose turbo pressure which has to rebuild after you completed the shift.

    No such thing with the automatic.

    And yes, the residual is less on the manual, as there is less demand for it.
  • jcanaljcanal Posts: 4
    The best lease quote I have gotten from 5 dealers in my area, for a volvo s60- premium package, for 3 years, 10,000 K, with $2000 down is $412 a month. Does this sound like a good deal?
  • Hi carsmart1. Obviously since you are purchasing through Volvo's X-Plan, the selling price that you were quoted for this car looks very reasonable to me. Volvo is running a special lease program on this car right now, but this special program is not compatible with its "Complimentary Premium Package" offer. Ignoring the free package, if you were to lease a 2006 Volvo S60 2.5T with an MSRP of $35,185 and a selling price of $33,468 through Volvo Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $426. If you didn't lease this car in December, shoot for this monthly payment.

    Car_man
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  • Yes, Jen, making a down payment on a lease would lower your monthly payment by reducing the amount that you are financing, but this lower payment comes with the risk of losing your money if your vehicle is totaled and it does nothing to lower your vehicle's lease-end purchase price. If you have extra money that you were considering using as a down payment, you can always use it to supplement your monthly lease payment or make a few of them for you.

    Car_man
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  • Hey jcanal. I'd be happy to give you my opinion on this lease but you never mentioned the selling price or MSRP of the car that you are interested in. 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 on this deal if you let me know what these numbers are.

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  • Hi, Car_man,
    Thanks for your help in advance.
    I am interested in the Volvo current lease special, $2850 down, $325 deposit, acquisition fee $595, monthly $295 for 36 months 10,500 miles/year. Could you please dvise if this is a good deal?
    Thanks.
  • sroddsrodd Posts: 1
    Hello,

    I have a 2002 Volvo s60 2.4T I will be turning in at the end of July. This is the first vehicle I have ever leased and would like to know how other peoples experiences with volvo car finance have been. I have read other forums here but they do not deal with Volvo's finance company and would like to know if it is different. The car is in excellent shape i am just wondering how nit picky they will be.
  • volvomaxvolvomax Posts: 5,274
    You will find out in advance, because Volvo Finance will send you an inspector 30 days prior to lease end.
    Also, you should have recieved an end of term kit from Volvo that goes over what they look for on your vehicle.
  • hnlawhnlaw Posts: 1
    What do you think of this deal?

    2006 S60 w/ premium package and metallic paint and sirius ready, MSRP 34880. Lease deal: 376 + tax per month, 48 month lease, 12k per year, $1000 TOTAL due at lease signing to include first month, security, etc.

    I have been dealing with several dealership, and have gotten the monthly down to this.

    Thanks!

    Hollie
  • qbrozenqbrozen Posts: 17,472
    i'm not sure this method of breakin down all the lease questions into their respective cars is working ... but i'll try asking anyway.

    On a whim, I'm curious as to the residuals and MFs for an '06 S60R 6-speed loaded with everything except NAV ($42,875 MSRP). 15k miles a year for 36 or 39 mos. Carsdirect tells me I should pay $36,475 for this car. Over $6k off MSRP is a helluva deal on such a nice car.

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

  • volvomaxvolvomax Posts: 5,274
    Volvo has a special program for this car, but you don't get the dealer cash. So you don't get the car for $6000 off.
    Odds are you are better off w/ the factory lease program.
  • qbrozenqbrozen Posts: 17,472
    thanks volvomax.

    do you happen to know the details on this special program? I know its asking alot, but let's say nothing down on the S60R with an MSRP i stated above (42,875).

    OR, if that's not easy to do, just the MF and residuals on a 36-month lease would be extremely helpful. Thanks.

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

  • volvomaxvolvomax Posts: 5,274
    I do.
    You can email me if you want the info.
  • I leased a Volvo 2.4T in 2002 with the lease having a 51% residual value. My lease is up and I am looking at leasing 2006 2.5T. The lease is not as attractive is my last lease because the residual value is set at 44%. Can the residual percent be negotiable? I'm happy with the selling price of the car, but the residual value is hurting my monthly payment.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey pfchen. Like most manufacturers' advertised lease payments, I suspect that the S60 lease that you have seen advertised is a good deal, but one that can be beaten. If one thinkks about it, it makes sense. Dealers would be pretty irritated if automakers advertised the skinniest possible deal on a particular model. If you are in an area where there is a decent level of competition, I suspect that you will be able to negotiate a lower selling price than the one that this advertised payment is based upon. Shop around with a few Volvo dealers in your area to get the lowest possible price for the car that you want and then have the dealer that quotes you it calculate your car's lease program using Volvo Finance's buy rate lease money factor. I can tell you what Volvo Finance's current lease program is like for this car if you are interested.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Hollie. You never mentioned the selling price of the car that you are interested in leasing. This is an important number 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 the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what its selling price is.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey qbrozen. If you were to lease a 2006 Volvo S60R through Volvo Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00019 and 50%, respectively. The numbers for an otherwise identical 39 month lease should be .00020 and 49%. I doubt that you will be able to get $6,000 off of this car if you want to lease it though. The CarsDirect price quote that you were given probably includes the $4,000 dealer cash that Volvo is currently providing on the '06 S60 R. Unfortunately, this dealer cash is not compatible with Volvo Finance's special lease program.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello volvoleaser. Unfortunately, vehicles' residual values are set by banks and individual dealers do not have the authority to alter them. The residual value that you were quoted sounds a little low to me though. How long are you leasing this car for and how many miles per year does your lease include. A 36 month, 15,000 mile per year lease of an '06 S60 2.5T through Volvo Finance should currently have a residual value of 52%. As you can see, this is much higher than the number that you were quoted, so something is strange here.

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