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2013 and earlier Volvo S60 Lease Questions

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  • I was recently at a Volvo Dealership in St. Louis MO. My current lease is ending in 2 months. I wanted the figures on a new lease on a 2007 S60 before I decide if I will keep my 2003 S60.
    This sales man quoted me a lease price of $480 with $2250 down payment 48 mo lease. MRSP is $36,813. He would not give me the invoice, said there were no rebates or incentives. He also said they don't lease 2006 S60s anymore because the 2007s are out. From reading this board, I don't believe that to be the case.
    I told him I had read on Edmonds.com that there were approximately $9000 in incentives. He said I should not believe everything I read. I am a woman, but I do do my research. Two minutes after I left the lot, he calls...opps!! The computer made a mistake, and there are incentives, a whopping $9000 worth. OK, he is now taking $9000 off the car, lease comes in at $430 now. The ad in the paper starts the lease out at $279 - $319. His figues still seem high to me. I just didn't expect this kind of treatment at Volvo. When I leased my first Volvo, it was more like, here are the incentives, price...take it or leave it. Now it's more like I'm going to take you for this ride if you let me. If I do decide to deal, it won't be with this salesman. I've contacted the other Volvo dealer who said he will beat this dealers price, that won't be hard.
    My question, what are the available incentives on the S60, both 2006 and 2007. Also, are there any incentives for customer loyalty, even if you are leasing.
    This guy said the price of the vehicles is not important, just the payment. He's a crook if you ask me.
  • qbrozenqbrozen Posts: 17,664
    This guy said the price of the vehicles is not important, just the payment.

    Well, I personally believe the payment is the most important part when leasing. Leasing is renting, so the cheaper I can rent it for, the better. HOWEVER, since the price obviously influences the payment, it IS important. And you obviously want to know that they are taking $9k into account.

    As far as this deal ... dropping only $50 a month for $9k difference in price seems way off base. Did he still want $2250 down? And was it still a 48-month lease?

    Well, all you really need to get from him is the money factor and residual he is using. With those numbers, you should be able to calculate what your lease payment should be (since you can figure out selling price on your own, whether the dealer likes it or not, the info is available right here on edmunds).

    All in all, it sounds like this salesperson is giving you lousy lines and I wouldn't appreciate it if I were you, either. So I'd get my numbers together and move on to the next dealer (or the next salesperson at the same dealer, if you want).

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

  • I am looking at the 2007 S60R to lease. What are the latest and Best lease promotions through Volvo and other approved 3rd party lenders. Not sure if this matters but I am in TX.

    Here is what Volvo dealer told me:
    Volvo Financial:
    $3000 incentive
    Residual: 43-45%(48mo term) and 50%(42mon term)
    MF: 0.0043 (something to that effect.I know it was over 10% which is totally rediculous)
    +TTL
  • Hi Car_man,

    Can you analyze my deal for me:

    2007 Volvo S60 (base model)
    Leather/Sunroof
    lease factor .00212
    36 mos lease / 15k miles
    Residual -- 45%
    $2500 at signing (400 1st payment, 1300 cap cost reduction, 645 acquisition, 137 dealer fee)

    monthly payment $400

    Thanks alot!

    Brian
  • I left out my MSRP:

    $35,145

    Thanks again,

    Brian
  • Car man,

    what is your input?

    I am looking at the 2007 S60R to lease. What are the latest and Best lease promotions through Volvo and other approved 3rd party lenders. Not sure if this matters but I am in TX.

    Here is what Volvo dealer told me:
    Volvo Financial:
    MSRP is $47049
    $3000 incentive
    Residual: 43-45%(48mo term) and 50%(42mon term)
    MF: 0.0043 (something to that effect.I know it was over 10% which is totally rediculous)
  • Hi neednewcacar. I believe that the dealer invoice price of the car that you described is around $32,826. As you can see, the selling price that you were quoted is well below invoice. This leads me to believe that this lease is being run through a bank other than Volvo Finance. Volvo is providing special cash incentives on vehicles that are leased through independent banks. Specifically, 2007 Volvo S60 2.5T models that are leased through banks other than Volvo Finance are eligible for a $3,500 cash incentive. Even when this cash is taken into account, the selling price that you were quoted still looks very attractive. This looks like a very good deal to me.

    Car_man
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  • Hello raindrop3. I believe what you were told was correct. I don't think that Volvo is providing lease support on 2006 models any longer. It is just providing dealers with closeout cash on them to help them unload their remaining models. If you want to lease, you will be much better off going with an '07 S60.

    As far as this car's cash incentives go, Volvo is not currently providing cash incentives on leases of 2007 S60 models through Volvo Finance. It does have cash incentives for consumers who lease this car through independent banks though. Specifically, there is $3,500 on '07 S60 2.5T models and $4,500 on '07 S60 T5 models that are leased through any bank other than Volvo Finance. If you decide to lease through Volvo Finance, it has special lease money factors instead of this cash. Volvo has $5,000 in cash incentives on the '06 S60 this month.

    Car_man
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  • You are absolutely right, bornracer. The money factor that you were quoted for this car is absurd. Volvo Finance's current 48 month buy rate lease money factor for the 2007 S60 R is only .00080. If you decide to lease through an independent bank instead of Volvo Finance, this car is eligible for a $5,500 cash incentive. If I was quoted the deal that you mentioned, I personally would shop around with a different dealer.

    Car_man
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  • Hey Brian. According to the latest information that I have seen, Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Volvo S60 2.5T base model with 15,000 miles per year are .00108 and 48%, respectively. I would be happy to give you my opinion of this deal, but in order for me to do so I need you to provide me with this car's MSRP and selling price.

    Car_man
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  • Hi Car man,
    We've enjoyed reading your helpful posts. Keep up the great work!
    Is this a good lease deal:
    northern california
    2007 Volvo S60 2.5T base model(no premium,no sport)
    MSRP: 31580
    dealer price: 30012
    incentives(Volvo Finance):2500
    cap cost:27512=( 30012-2500)
    residual: 15790( 50%)
    money factor: .00155
    up front costs= 1124
    monthly charge= 445
    Thanks!!
  • Hello Car_man,

    Aprreciate the feedback on the volvo lease.

    Prior to your response, the dealer has informed me of a new lease deal on 2007 S60R going through US Bank.

    MSRP: 47290 ($44093 is invoice) Profit=$3197+$389 holdback
    Lease incentive from USB: 9500
    Cap cost: 36000 (got an extra $1790 off MSRP)
    Fees(doc+ govt + inventory tax): 259.31
    Sec Dep: 550
    term: 48mo
    miles/yr: 12K
    initial payment(sec dep+1st pmt): $1086.31
    Residual: 17497.30 (37%)
    MF: 0.00232

    mo. pmt: 536.31

    For some reason, I feel like there is something left on the table. I have a beacon of over 800.

    Do you know what MF I should be paying from US Bank?

    Dealer stated this is a tax "free" lease.
    Not sure who covers the 6.25% texas tax based on entire cap cost. volvo, US Bank, or dealer?
    If volvo or US Bank are responsible, dealer is making about $1800.

    If dealer responsible for tax, then they are not making anything unless US Bank is kicking something back to them such as a funding fee which could be $500-$1000.

    1). Do you know who is paying tax?

    2). By the way, I do qualify for X-plan ($44241) but dealer stated this does not qualify for tax included deal.

    3) Based on your comment before about the $5500. Would this be in addition to the 9500 US bank is throwing in?

    4). Does it seem reasonable or doable to get x-plan - US Bank discount - Volvo credit. $44093-$9500-$5500?

    thanks in advance.

    bornracer.
  • Hello Car Man,

    Can I get your opinion on this lease?

    Volvo S60 (2007)
    Metallic Paint, Luxury Pkg (lthr, heated seats, sunroof...) MSRP of around $35k + change

    3 year 36,000 lease. Monthly payment with tax of $350 with $665 out of pocket.

    Your feedback is appreciated,

    David
  • Hello car man,

    A.) I have been reading that if you are going to put any money down on a lease, you should add it to the security deposit?

    1). What does this do for you(is there any benefit)?

    2). if the car is totaled, wrecked, or returned early, do you lose it(are there any negatives)?

    B). Can a lease agreement be modified if you do not like the language or you need a more defined statement in writing(not just a scribble on a napkin from the dealer).
    For instance, what actually constitutes normal wear and tear?
    or who inspects the vehicle upon return? can I have an independent shop give a second opinion?

    thanks

    bornracer
  • Bornracer,

    I am not carman but I just turned in a Volvo off lease so I thought I would share my experience. The car was leased on Volvo paper and it comes with "wearcare" which basically waves the costs to you of the first $1,000 of excess wear and tear. About 2 mos before the lease ended, volvo sent us a detailed brochure and measuring tool so we would know what we potentially could be charged with. I tend to be concerned about wear and tear especially when it is not specifically spelled out at the time the lease is signed but in this case, Volvos parameters were more than reasonable. We had a couple of scratches in the bumper which were considered excess wear and tear but since the cost was well below $1,000, we did not have to pay anything. There were a couple of small doors dings which were considered below the threashold for excess wear and tear.
  • thanks dmauto. not sure if the US Bank option has this in their deal. Did the dealership state this or the contract state you have $1000 toward wear and tear? was it something you negotiated?

    bornracer
  • the wearcare is something that came with the car i turned in - the car was leased on volvo paper. not sure what us banks guidelines are on this - you could call them to find out.
  • volvomaxvolvomax Posts: 5,274
    US Bank does not include wear insurance.
  • I found a 2006 S60-R that was a dealer demo. Can you please explain how these incentives work, both from the dealer and a third-party lease provider? Thanks!
  • volvomaxvolvomax Posts: 5,274
    If you are leasing you are better off w/ an 07 R
    Third party lease on an 06 would be brutal. Plus, the lease incentive is greater on an 07.
  • Hi all...

    It's my first experience leasing a car (or paying for one on my own, for that matter!) so I wondered if you could check this deal.

    This is for an 2007 S60 AWD with Premium, Climate, Bluetooth

    MSRP 38675
    Negotiated price 27000
    Down 1300
    Monthly 420
    MF .0026
    Tax on down payment 115
    1st pmt 420
    Bank fee 1075 (seems high?)
    Tags 130

    Thanks!
  • Thanks for the kind words, nocal4. The selling price that you were quoted for this car looks good to me. However, the money factor that you were quoted for it looks to be a little on the high side. According to the latest information that I have seen, Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 S60 2.5T 2WD with 12,000 miles per year are .00066 and 50%, respectively. Furthermore, I believe that Volvo's lease cash incentive on the 2007 S60 is $3,000, not $2,500. Make sure to straighten these things out before finalizing your deal.

    Car_man
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  • Wow, bornracer, you are getting a discount of $11,290 on this car. That is a very low price. The last time that I checked, Volvo was only providing a $5,500 cash incentive on leases of 2007 S60 R models through independent banks, so this selling price looks great. I don't see where the $9,500 came from. Independent banks do not provide cash incentives on vehicles.

    I do not personally keep tabs on the lease programs that are being offered by independent banks, just those for manufacturers' captive finance companies, so I can't tell you what U.S. Bank's buy rate is for this car right now. I can however estimate how much this car would cost to lease through Volvo Finance right now to give you a payment to compare the one that you were quoted to. According to my calculations, if you were to lease a 2007 Volvo S60 R with an MSRP of $47,290 and a selling price of $41,593 ($500 over the $44,093 invoice price minus $3,000 lease cash) through Volvo Finance right now for 48 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $502. As you can see, you actually might be better off leasing this car through Volvo Finance than through an independent bank.

    Car_man
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  • Hello David. The payment that you mentioned looks pretty attractive to me, but in order for me to give you a detailed analysis of this deal I need you to provide me with this car's selling price. 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 work up a sample lease payment on the car that you are interested in for you if you let me know what its selling price is.

    Car_man
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  • Hey bornracer. What you have heard is correct. Consumers who make large down payments on leased vehicles risk losing them if their vehicle is totaled in an accident or stolen and never recovered. If you want a lower monthly payment for your lease and have some money, making additional security deposits would be a better use for it. The last time I checked, Volvo Finance allows its lessees to make up to ten six additional security deposits on leases, with each additional deposit reducing the money factor that is used to calculate their vehicle's monthly payment by .00006. I believe that security deposits are refunded on vehicles that are totaled, but you probably should check with Volvo Finance or the F&I Department of the dealership that you are working with to be sure.

    Lease contracts are pretty standard. I doubt that you would be allowed to modify a bank's standard lease contract. You can find out more information on Volvo Finance's lease-end inspection process and wear and tear guidelines by visiting the following site: Volvo Finance Lease-End Process.

    Car_man
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  • Thanks Car_man.

    Yes the dealer stated $9500 off from US Bank with 6.25% tax covered.

    Can you let me know what MF you were using for volvo finance and residual?

    DOes the US bank rate seem high from what you have seen?

    Bornracer
  • volvomaxvolvomax Posts: 5,274
    Not even close.
    VFNA has no subvented program for the S60R.
    Take the incentive and go to a bank.
  • Welcome mskrin99. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    The car that you described has a spread of around $2,500 between its full MSRP and dealer invoice price. You were quoted a whopping $11,675 discount on this car. It appears as though you are leasing this car through an independent bank. Volvo is currently providing a $3,500 cash incentive on leases of 2007 S60 2.5T AWD models through banks other than Volvo Finance. This gives you a total of $6,000 to work with. I'm not sure where the other $5,000 and change discount is coming from here, but to give you a point of reference, I will calculate how much it would cost to lease this car through Volvo Finance right now. Let's say that you were able to lease it through Volvo Finance with a $2,000 discount, which would be right around $500 over invoice. According to my calculations, if you were to lease a 2007 Volvo S60 2.5T AWD with an MSRP of $38,675 and a selling price of $33,675 (a $2,000 discount minus $3,000 lease cash) through Volvo Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $449. With a $1,300 down payment like you mentioned in your post, this payment would drop to around $412.

    You're right about the bank fee being too high. I don't know exactly what sort of acquisition fee the independent bank that you are leasing through charges, but Volvo Finance only charges a $595 acquisition fee on leases.

    Car_man
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  • Hi Bornracer. I still think that it is strange that US Bank would offer any sort of cash incentive on a lease of a vehicle. Manufacturers' captive finance companies' have an incentive to provide cash on vehicles because they help their parent companies sell vehicles, but independent banks do not. Anyhow, Volvo Finance's current buy rate lease money factor and residual value for a 48 month lease of a 2007 Volvo S60 R with 12,000 miles per year are .00080 and 42%, respectively. The money factor that you were quoted for US Bank, .00232, isn't terrible. It's equivalent to an interest rate of around 5.568%.

    Car_man
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  • Volvo Finance definitely is providing special lease money factors on the 2007 S60 R in many parts of the country. Having said this, one may indeed be better off taking advantage of the cash incentives and leasing through an independent bank.

    Car_man
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