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2013 and earlier Volvo S60 Lease Questions

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  • Hey andre1. I don't believe that Volvo is currently providing lease support on 2006 models in most areas any longer. The 2007 model's special lease program varies depending upon what area one is in. In most of the country, the 2007 Volvo S60R's current 24 month, 15,000 mile per year buy rate lease money factor and residual value are .00187 and 63%, respectively. The numbers for an otherwise identical 36 month lease are .00187 and 54%. In the Northeastern U.S., this car's lease program is a little better than this. If you were to lease this car with only 12,000 miles per year its residual values would be 2% higher.

    Car_man
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  • Congratulations on your new car, biggerdaddynj. Thanks for taking the time to share the details of your deal with everyone. Enjoy!

    Car_man
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  • Hi severancehall. The fact that you can lease your new Volvo through the "A-Plan" will enable you to get an attractive selling price on it without having to haggle. Just make sure that the dealer you are working with uses Volvo Finance's buy rate lease money factor to calculate your car's monthly payment. If you tell me what state you are in, I can tell you what that number should be right now. I can even work up a lease payment on this car for you if you tell me the exact MSRP and selling price that you are able to get on it through the A-Plan.

    Car_man
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  • Hi neednewcacar. The dealer that you spoke with is correct. Volvo's lease program varies by region. By far its most aggressive lease promotions are in the Northeastern U.S. It has its best lease promotions in the New York area, which probably includes New Jersey. Unfortunately, one can get a much lower monthly payment on a lease of a Volvo there than they can get in California right now.

    Car_man
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  • Hi 3rdvolvo. It is difficult to say how good this deal is without knowing this car's full MSRP and selling price. These numbers will show us how much off a discount you are being given on your car and they will enable us to use Volvo Finance's actual lease program to estimate what its monthly payment should be. Let me know what these prices are and I'll tell you what I think.

    Car_man
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  • Is the following a good deal:

    2006 Volvo S60, Premium Package, Sport Package, Met. Silver, Automatic MSRP: $35,675

    For 36 month lease, 12K miles a year - $2,000 down and $357 a month. (includes all fees i.e. tax, title, acq. fee, etc.)
  • Hi,

    Has anyone heard about any deals similar to the one being offered last month for 289 per month?
  • From what i have heard, the deal is over. The same vehicle I got S 60 climate premium for $299. month is now $349 a month. I took advantage of it last month, and am trying to get the same deal for a buddy. Its just not available.
  • This is in Connecticut on behalf of my father. Want to make sure he's not being taken for a ride...

    For a 2007 S60 w/ premium, climate and metallic paint and an MSRP of $37,575, he has been quoted a purchase price of $33,145.

    For a 39 mo., 10k/yr lease, he's been quotes a monthly payment of $499.26 including 6% CT sales tax with $1,877 down (which includes first month's payment).

    Do you have the current residual % and money factors on S60's for Sep. through Volvo finance?

    Also, there are obviously incentives at work here since the purchase price is lower than invoice - do you have details of what the incentives are?

    Thanks in advance!
  • Thanks, car man. Decided to buy a Zephyr on the Ford A plan w/ a 72 mo. purchase @ 0% interest. $500 down = $425/mo. with a $28.8K buy price for leather, THX stereo, moon, dual power seats, 6 cyl., black on black, etc. The S60 will have to wait. Darn ... always wanted a Volvo.
  • Just thought I would update the group on the S60 leasing experience from my previous post asking for help.

    Right now (late Sep. 2006) Volvo is offering $7,500 of incentives on the S60. No lease support as far as I can tell. It took some digging and persistence to learn this info.

    We originally got a quote from a Volvo dealership in CT for an S60 AWD w/ premium, climate and metallic paint for the $499/mo. I almost choked on this price because I knew it was BS. This is not a 330xi...

    We called four other dealerships - two in CT, one in NJ and one in NY. Over the course of about a week, the $7,500 of incentives became clear. We ended up getting a lease on the same car for $392/mo. from the dealership in NJ. Money factor of 0.00204 (about 5% APR) and residual of 45% (crappy but pretty standard for Volvos it appears). $1450 up front including 1st mo. payment. This is basically dealer invoice less the incentives. I feel this is a very good deal.

    My advice is to shop around. Don't be afraid to go to three, four, or more dealerships, and definitely don't be afraid to go out of state. About the only thing you lose by purchasing from a dealer that is not near your home is the convenience of the free loaner program that some dealerships offer.

    Also, don't pay attention to MSRP. You should walk away from any salesperson who insists on using this as a starting point. Try to deal w/ the internet or fleet sales person. And plan to finalize a deal the last week of the month if possible - you may be helped by dealership quotas.

    One other mental trick that is to multiply the monthly payment by the lease term when you get down to final negotiations. Even $25/mo. can add up over three years (I know...I'm ignoring time value but whatever...)

    These all helped us in getting this deal. Good luck to everyone.
  • acm741, these incentives are on the 2006 S60s, right? I can't believe this would exist on the 07s.
  • Nope, 2007. Not sure how long it will last since these things change each month.

    My understanding, which may not be correct, is that 2006's become unattractive to support after some time since the residual values drop so low once 2007's show up in large enough quantities.

    Bridgewater Volvo in NJ is where we bought the car. Picking it up on Thurs. Ask for the internet sales manager.
  • tonyg9tonyg9 Posts: 9
    I recently leased an 06 S60 M.S.R.P. $36,675 for 335.99/Mo. tax included.
    Sale price 22535.22
    Resi. 41%
    M.F. .00204
    Sec. Dep. 350
    Aquisition Fee. 895 (I know High)
    Terms 36/15k/1k Drive off
    Options:
    Conveinice Pkg.
    Premium Pkg.
    Sport Pkg.
  • Hello ironman2. 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 of this deal if you let me know what its selling price is.

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  • Hi acm741. I believe that the car that you described has a spread of around $2,400 between its full MSRP and dealer invoice price. In addition, Volvo is currently providing $2,000 lease cash on it. This gives us a spread of around $4,400 to play with. This is right around the discount that your father was quoted for this car. As long as this lease is being run through Volvo Finance, he is getting this car for right around dealer invoice which is a good deal.

    Using the prices that you mentioned in your post, an MSRP of $37,575 and a selling price of $33,145, if you were to lease this car through Volvo Finance I estimate that its 39 month, 10,500 mile per year, zero down, pre-tax monthly payment should be around $442. I used a money factor of 0.00142 and a residual value of 50% to arrive at this payment.

    Car_man
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  • No problem, severancehall. You can't go wrong with 0% for 72 months. Enjoy your new car.

    Car_man
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  • Congratulations on your new car, acm741. Thanks for taking the time to share the details of your new lease with everyone. Enjoy.

    Car_man
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  • Hi tonyg9. You certainly got an amazingly low selling price on your S60. The money factor that you were charged looks reasonable as well. I think that you did well. Enjoy your new car :) .

    Car_man
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  • Car Man,

    I've heard it's better to make the sales tax part of the lease deal rather than paying those upfront. The reason, if something happened and the car was stolen or totaled (God forbid) you would have saved yourself all that sales tax. Something about this makes sense, at the same time, I can't imagine you could ever get out of paying the sales tax on a purchase. Would they make you pay the balance of the tax anyway in that case, or do you really save yourself the tax? (I realize doing this can cost a bit due to the internal interest rate/money factor applied to the sales tax you would finance, but if it's $2 a month or so, this could be seen as some sort of "insurance".) And if it is a good idea, can any of the other upfronts be financed?

    Thanks for your time.
  • volvomaxvolvomax Posts: 5,274
    How the sales tax is paid is up to the state.
    Most states have the sales tax as a percentage of the lease payment. A couple of states, Illinois for example, make you pay the full sales tax up front.
    If you buy out the lease, you pay the sales tax on the buyout amount.
  • kyfdxkyfdx Posts: 29,105
    How the sales tax is paid is up to the state.

    This is true, but...

    In states where the tax is paid upfront, you can either pay it in a lump sum, or the finance company will pay it, and then add it into your cap cost.. In effect, you will be paying it over the term of the lease (with a little interest included).

    I agree.. it is better to roll it into the lease, for just the reasons you described.. If the car is totaled early in the lease, GAP insurance pays off the finance company.. If you had paid that tax out of your pocket, there would likely be no refund of that portion.

    I do the same thing with any substantial upfront cost (like the acq.fee). I always roll it into the payment.

    regards,
    kyfdx

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  • tonyg9tonyg9 Posts: 9
    Thanks for the reassurance Car_Man, I was not :) sure about the deal.
  • paul68paul68 Posts: 1
    Looking to lease this car and unfortunately, missed the great specials last month...

    I have been shopping prices at numerous NY, NJ dealers and here is what seems to be the best deal so far. I would love your opinion:

    S60 with climate and premium packages
    $339.44 with $2232.23 due at signing.
    The MSRP is $35820 with a residual of $15834.75.
    no cap cost

    thanks for the help!

    also, if anyone has any suggestions on which the best dealers are in NJ and NY to get the best deals...i would love some feedback.
    thanks!
  • tws2tws2 Posts: 1
    To all,

    Please weigh-in on your thoughts as to the attractiveness of the following lease special as per the link. I am interested in the S60 with the following details:

    1. Instead of the 4 yr. lease as advertised I have opted for the 3 year
    2. $1,330 will be due at time of signing (inclusive of the first payment).
    3. The residual at the end of 3 years is approximately $15,500 (Seems low)
    4. Instead of paying the taxes up front, I have opted to roll them in to the payments
    5. The monthly payments will be $403.00

    The link for the ad is here:
    http://www.liag.net/ads/SevenWays.html
  • What you have heard is correct, carforevan. If you can roll sales tax onto your car's lease payment it is a good idea to do so. By doing so, not only do you eliminate the risk of losing it if your vehicle is totaled in an accident or stolen but you also are also often able to take advantage of the low interest rates that are available on supported leases. It's a good idea to keep the money that you would have laid out for sales tax in the bank or in a CD collecting interest if you only have to pay 1% or 2% interest on it when you roll it into your lease. Rolling sales tax into your lease payment doesn't get you out of paying tax on your vehicle, the bank that you are leasing your vehicle through is just paying it for you at signing and you are financing it in your lease. You should be able to roll your car's acquisition fee into its cap cost as well.

    Car_man
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  • You're very welcome, tonyg9.

    Car_man
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  • Hi there paul68. 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 of this deal if you let me know what its selling price is.

    Car_man
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  • Hi tws2. 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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  • Hi all - what do you think of this deal offered to me by a Southern California dealership:

    2007 S60 2.5T, Premium package, metallic paint, sat prep, Sirius satellite radio receiver installed (priced at $300, rolled into lease, can be removed by me at end of lease term)

    36 months, 12k/year

    MSRP: $35,140
    Sell price: $27,625.44

    $0 drive off (includes 1st month)
    $398.20 + tax = $429.15 x 35 monthly payments

    End-of-lease disposition fee: $395
    Acquisition fee: $895

    Feedback appreciated! Thanks.
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