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2013 and earlier Volvo S60 Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings hts666. The car that you described, a well equipped 2007 Volvo S60 R has a spread of around $2,800 between its full MSRP and its dealer invoice price. Given the size of the discount that you were quoted, I suspect that you are leasing this car through an independent bank rather than through Volvo Finance. Volvo is currently providing a whopping $7,000 cash incentive for leases of the '07 S60 R through independent banks. Plus there is $2,000 lease cash and $1,000 owner loyalty or conquest cash on this car right now. Combine these three cash incentives with the spread between this car's MSRP and invoice price and you have a total of around $12,800 to play with. You are being given a discount of $7,100. If this lease is not through Volvo Finance, you should be able to negotiate a lower selling price than this. If your lease is being run through Volvo Finance, this is a great price.

    Car_man
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  • Hello,

    I have a pending deal on a 2007 S60, with the Premium and Climate packages. Terms are:
    39 months, 15,000 miles per year, $2800 total cash down (includes registration fee, taxes, first month's payment, etc.), and $342 per month.

    The bank is Wells Fargo, and the cost of the vehicle (cap cost?) is $24,300... from an original sticker of 35,800. I am scratching my head at how they got the cap cap cost so low. Never owned a Volvo before, hope to be pleased.

    Can anyone give me an opinion on whether or not this is a good deal, it seems like it to me.

    Thanks,
    Mike
  • Good afternoon!

    Just got back from Volvo of Princeton and made arrangements to lease a 2007 S60 2.5T.

    Mike - I had a pretty similar experience price wise...

    I'm still amazed at the discounts on Volvos - went in with interest in a S40, but the price difference was something like $15/month - WELL worth the upgrade from the S40 to S60.

    I'll pick up the car on Monday, April 2nd.

    My details:
    36 month lease through US Bank for 18k/year
    New 2007 S60 2.5T
    Titanium Grey w/ Graphite interior
    Premium, Climate, Satellite Radio Prep
    MSRP - $35,820
    Cap cost - 24,106 (!!!)
    Residual - 41% (due to high miles)
    Money factor - 0.00207 (or ~4.9%)
    Down payment/money out of pocket - $1,648 (include acq fee, 1st month, NJ add-on fees (not state tax) etc.)
    Works out to $408/month
    I think that's terrific!

    Steve
  • amorenoamoreno Posts: 4
    Hey guys. I appreciate reading all of the posts in this excellent edmunds.com forum. Car_Man (or other friends), can you tell me if this deal makes sense to you guys?

    I called a volvo dealership in texas trying to get the residual and money factor numbers on a 36K/36Month lease on a basic volvo s60. Here's what they told me:

    Residual-48%
    Money factor-.01 (did they mean .001?) I asked and they told me ".01 is what our computer says." if i'm correct, that's a whopping 24% interest rate. am i safe assumimg they meant .001? or do you guys have the official money factor rate for volvo financing.

    they're offering me a basic s60 for $26,080. the sales manager told me that the monthly payment would be $364. i told him i don't want to put any money down and he said it was fine. the total costs would be: $365 first payment, $108 fees, $375 security deposit, and then a $80 fee (for something i do not know). did he forget taxes? as i am in texas.

    to summarize: can i get a better cap price? and what is the money factor and residual?

    your help would be much appreciated!

    andy
  • mellow2mellow2 Posts: 1
    We are currently leasing a s40 2.4i 2004, original lease package was 48 months, 15k mi. Currently at 32 months with 36k miles. We want to trade up to a s60 2.5t, 2007, with premium and sports package, sticker price is $38k, price on lease offered is $30k. Was offered $15k for the trade in value of car (s40). Dealer offered lease package $479/mo. (through us bank) with tax, 48 mos., 12k, $1k down (first payment, tax, tags included). Reading through the forum it doesn't seem to be a good deal. Any advice? (our credit is perfect).
  • qbrozenqbrozen Posts: 17,334
    reading through the forum doesn't help you much because you have so much negative equity that you are rolling into the new car. Getting out of a lease early on a steeply depreciating car is never cheap.

    There are typically 2 choices when trading in the car, either all of the remaining payments are rolled in to the next car OR the difference between trade-in value and current buyout. If you were offered $15k on the S40 ... I'm taking a wild guess and saying you are probably rolling ~$4k negative equity??? On a 4-year lease, that is probably bumping your payment up by at least $80. Probably more like $90. So if it wasn't for that negative, the deal would be under $400/mo.

    Still doesn't seem great for a 4-year lease, though. Personally, I'm really opposed to leasing past 3 years.

    By the way, you've driven the current car 36k miles in 32 months. So it seems a 12k/yr lease is not enough for you.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello Mike. Volvo is currently providing enormous cash incentives on leases of the '07 S60 through independent banks like Wells Fargo. The exact amount of cash that is available through this program ranges from $6,000 to $8,000, depending upon the trim level of the vehicle that you want. In addition to the cash for leases through independent banks, Volvo is providing $2,000 cash on leases of this car through any source. That puts the total cash on leases of the S60 at $8,000 to $10,000! That's how the dealer you are working with was able to give you such a large discount on this car. I don't know exactly which S60 you are getting, but the selling price that you were quoted looks very attractive to me.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Andy. You're right, there's no way that this car's money factor is .01000. Volvo Finance's current buy rate lease money factor for a completely stripped version of the '07 S60 2.5T is actually .00001. This is the lowest possible money factor for a lease. In addition to this attractive month factor, Volvo is providing a $2,000 cash incentive on leases of this car that will help you to negotiate an attractive capitalized cost. If you provide me with the MSRP of this car I would be happy to give you my opinion on the selling price that you were quoted.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi mellow2. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

    Car_man
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  • spiderdanspiderdan Posts: 10
    I'm currently in negotiations with a local dealer in Cleveland, OH for an S60 2.5T w/Premium package, climate, and metallic paint. Here are the details:

    - MSRP: $35,725
    - Due at delivery: $694 (first payment, doc, title, taxes)
    - Cap cost: $25,425
    - Ohio taxes added upfront (to be worked into monthly payments): $1,025
    - Residual value: $12,488
    - Money factor: .00191
    - Term: 48 months
    - Monthly payment (includes tax): $391.00

    Using the online lease calculator at LeaseGuide.com, the monthly payment should be $365.25. And at 36 months, the payment should be $326.16 (the dealer quoted my $419.00). Is the dealer hiding some profit in the numbers they presented me?

    Also, are the attractive lease rates that people were getting back in August ($299 for 36 months on 07 S60's) not obtainable anymore? By chance, could these appear again this summer (for 2008 models)?

    Thanks,
    Dan
  • qbrozenqbrozen Posts: 17,334
    Also, are the attractive lease rates that people were getting back in August ($299 for 36 months on 07 S60's) not obtainable anymore?

    it may be obtainable now, but it would be on one with far less options than what you are looking at.

    I'm not sure about your numbers, but it would seem to me $694 up front does not cover all the fees. What about security deposit? What about the bank fee (usually $600 by itself)? Maybe these items are throwing you off.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • spiderdanspiderdan Posts: 10
    There is no security deposit but it does seem odd that the bank fee wasn't mentioned. That's probably rolled into the lease. But even at $600, the total monthly payment with tax would be $378. Would it make better sense to pay the bank fees up front?
  • qbrozenqbrozen Posts: 17,334
    Would it make better sense to pay the bank fees up front?

    I would say so. With it rolled into the lease, you are paying interest on it.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • spiderdanspiderdan Posts: 10
    Just returned from another Volvo dealership and my S60 will be delivered fresh with 0 miles next week:

    - MSRP: $35,725
    - Cap cost: $25,425
    - Ohio taxes due upfront (worked into monthly payments): $1,025
    - Residual value: $12,488
    - Money factor: .00191
    - Term: 48 months/12,000 miles
    - Total due at delivery: $1,247 (first payment, doc, title, bank fee)
    - Monthly payment (includes tax): $365.26

    I think I got a great deal - let me know what you all think. I would love to have your input Car_Man.
  • amorenoamoreno Posts: 4
    Car_Man,

    MSRP is 31,680 (including destination charge.

    Question, are you saying i can negotiate the cap cost from around 25K down to 23K becuase of the $2000 cash incentive volvo is providing on leases? if so, i think i should renegotiate and jump on this deal!

    thanks for you input and looking forward to hearing back from you.
    andy
  • 2007 S60 2.5t with sunroof,leather, heated seats, etc. for 36 months/12000 miles per year for $299/month + tax with $2000 due at signing.

    42% Residual
    4.9% Lease which breaks down to ... .000?? You know

    What do you think? With the $2000 down after taxes it would come to about $322 a month DEAL OR NO DEAL??

    Thanks in advance
  • realtorken1realtorken1 Posts: 14
    forgot to mention, price of vehicle is 23,866
  • dm13850dm13850 Posts: 11
    Car_Man and others -

    First, thanks for providing so much great information on this forum. I'm about to lease for the 8th time and I'm sure the advice I've gotten here has saved me many thousands of dollars over the years.

    I'm looking to lease a 2007 S60 R with the following options:
    - Manual transmission
    - Premium package
    - Climate package
    - Interior air quality system
    - Sat. radio prep

    MSRP is $42,975, and I have two questions:

    What are the current MF and residual for 36 months, 12k per year from Volvo?

    What incentives are available right now on this specific model? I've seen reference to the $7k lease incentive through other banks, $1k conquest cash (assume this means I can get it as long as I have a non-Volvo right now), and $2k in general lease cash. Are these all still available?

    Thanks in advance!
  • dm13850dm13850 Posts: 11
    Anyone know the answer to my questions above? I would especially appreciate any info on the current incentives for this model.
  • vtdogvtdog Posts: 163
    I can't speak to your lease, however I just leased the following: '07 S-60 AWD with the 3 big options,cold weather package, upgraded auto-transmission, fog lights, etc.

    The lease was made with 750 down and includes the 8,000 rebate for leasing and is a 48 month-15k/year miles. The residual was 33%. I can't remember the exact figure, but the buy out at the end was about 12500.

    Working the numbers, the lease will cost me $ 500 more than just an outright buy. However, buying only had a 4,500 rebate and I can keep the purchase price (about 32k after 4,500 rebate/dealing with salesman, etc) in the bank and can make 5% easy these days in just a CD. So, for me leasing works out financially.
  • dm13850dm13850 Posts: 11
    Thanks, vtdog. Sounds like a good deal.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi spiderdan. It appears as though this lease is being run through an independent bank. Volvo is currently providing large cash incentives on S60s leased through banks other than Volvo Finance. The exact amount of this cash varies by trim level. The exact cash incentives that are available on the S60 are $8,500 on the '07 2.5T and $9,500 on the '07 T5. Make sure to negotiate as low a selling price as possible on the car that you want and then have the special cash incentive subtracted from that.

    Car_man
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  • qbrozenqbrozen Posts: 17,334
    $9500 on the T5??? HOLY COW! Any idea if that applies to the V70?

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • dm13850dm13850 Posts: 11
    Car_man, do you know what lease incentives Volvo is offering for the S60R? Thanks!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Thanks for the additional information, Andy. The fact that you didn't know about the $2,000 lease cash that is being provided on the 2007 Volvo S60 does not necessarily mean that it wasn't being taken into account on your deal. A base 2007 Volvo S60 2.5T only has a spread of around $1,800 between its full MSRP and its dealer invoice price. You are being given a discount of $5,600 on the car that you are interested in. If your lease is being run through Volvo Finance. This is an outstanding deal and probably as good a price as you are going to get.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi realtorken1. 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
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey realtorken1. Ahhh, I see that you did mention this car's selling price. It still would be very helpful if you were able to provide me with its MSRP so that I can see what sort of discount you are being given on it.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're very welcome, dm13850. Here's the information that you're looking for. Volvo Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Volvo S60 R with 12,000 miles per year are .00081 and 50%, respectively. When negotiating a lease of this car through Volvo Finance, make sure to take the $2,000 lease cash that is available on it into account. If you decide to lease this car through a bank other than Volvo Finance, make sure to take advantage of the whopping $11,000 cash incentive that is available on leases of it through independent banks.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    No kidding, qbrozen. Volvo is providing a ton of support on leases of its vehicles through independent banks right now. Unfortunately, the cash incentive on leases of the 2007 V70 through independent banks is currently only $4,000.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dm13850. Please see my response to your original question a couple of posts ago. Let me know if you have any other questions.

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